Copper Hits Three-Week High, Buoyed Easing Trade Tensions

Commodity

Summary:

Copper prices scaled three-week peaks on Wednesday as worries about global trade tensions eased after U.S. President Donald Trump suggested import tariffs on top consumer China could fall.

Benchmark copperon the London Metal Exchange (LME) was up 0.7% at $9,438 a metric ton at 1033 GMT, having reached an earlier peak of $9,481.5, the highest since April 3. It has gained more than 15% since hitting a 17-month low at $8,105 earlier this month.

Both Trump and U.S. Treasury Secretary Scott Bessent have separately suggested there could be a de-escalation in U.S.- China trade tensions and that any trade deal with China could "substantially" cut tariffs.

"The market isn't looking at fundamentals. It's just reacting to what Trump and other U.S. officials are saying," a copper trader said, adding that an easing of Trump's rhetoric against Fed Chair Jerome Powell was also helping sentiment.

Trump backed off from threats to fire Powell after days of intensifying criticisms of the central bank chief for not cutting interest rates.

"In view of the fundamental situation, we remain cautious about the further upward potential of the copper price," Commerzbank said in a note.

Commerzbank cited the International Copper Study Group's (ICSG) latest monthly bulletin showing a surplus of copper, used in the power and construction industries, in February.

"This is surprising given the fears of a shortage of copper ore, which could lead to a reduction in metal processing," Commerzbank said.

Copper output in China , the dominant producer of refined metal, jumped 8.6% year on year in March to 1.25 million tons.

Industrial metals markets are watching surveys of purchasing managers in manufacturing for clues to demand prospects. In the euro zone the flash manufacturing PMI index showed shrinking activity in Europe.

In other metals aluminiumadded 1.4% to $2,413 a ton, zincwas up 1.7% to $2,639 leadrose 0.4% to $1,930, tinwas little changed at $31,115 and nickelgained 0.5% at $15,755 a ton.

Source: Reuters

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Glendon

Economic

Forex

Global shares mostly rose Wednesday, with markets showing relief after U.S. President Donald Trump indicated he won’t dismiss the head of the U.S. Federal Reserve.

France’s CAC 40 jumped 2.1% in early trading to 7,480.99, while Germany’s DAX rose 2.5% to 21,820.14. Britain’s FTSE 100 gained 1.6% to 8,461.24. U.S. shares were set to drift higher with Dow futures up 1.5% at 39,960.00. S&P 500 futures rose 2.0% to 5,421.75.

In Asia, Japan’s benchmark Nikkei 225 gained 1.9% to finish at 34,868.63. Australia’s S&P/ASX 200 surged 1.3% to 7,920.50. South Korea’s Kospi gained 1.6% to 2,525.56. Hong Kong’s Hang Seng added 2.4% to 222,072.62, while the Shanghai Composite edged down 0.1% to 3,296.36.

Trump had previously said he could fire Fed chair Jerome Powell after the Fed paused cuts to short-term interest rates. But Trump told reporters Tuesday, “I have no intention of firing him.”

Investors were also cheered by comments from U.S. Treasury Secretary Scott Bessent in a Tuesday speech. He said the ongoing tariffs showdown with China is unsustainable and he expects a “de-escalation” in the trade war.

“Of course, markets will continue to listen out for the latest White House rhetoric on tariffs and any hints of upcoming trade deals. As such, market direction will more likely than not continue to be dictated by Trump’s latest whims regarding tariffs and trade,” said Tim Waterer, chief market analyst at KCM Trade.

The only prediction many Wall Street strategists are willing to make is that financial markets will likely continue to veer up and down as hopes rise and fall that Trump may negotiate deals with other countries to lower his tariffs. If no such deals come quickly enough, many investors expect the economy to fall into a recession.

The International Monetary Fund on Tuesday slashed its forecast for global economic growth this year to 2.8%, down from 3.3%. A suite of better-than-expected profit reports from big U.S. companies, meanwhile, helped drive U.S. stocks higher.

Also helping market sentiment was the announcement from Elon Musk that he will spend less time in Washington and more time running Tesla after his electric vehicle company reported a big drop in profits. Its results have been hurt by vandalism, widespread protests and calls for a consumer boycott amid a backlash to Musk’s oversight of cost-cutting efforts for the U.S. government.

Tesla reported earnings after U.S. trading closed. Tesla’s quarterly profits fell from $1.39 billion to $409 million, far below analyst estimates.

In energy trading, benchmark U.S. crude added 80 cents to $64.47 a barrel. Brent crude, the international standard added 81 cents to $68.25 a barrel.

In currency trading, the U.S. dollar declined to 141.87 Japanese yen from 142.37 yen. The euro cost $1.1390, up from $1.1379.

Source: BNN BIoomberg

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Warren Takunda

Economic

European stocks rebounded on Wednesday, as investors drew some relief from U.S. President Donald Trump saying he had no plans to fire the head of the Federal Reserve, and hinting at lower tariffs for China.

The dollar initially leapt after Trump walked back his threats to dismiss Fed Chair Jerome Powell, which shook investor confidence in U.S. assets, although most of those gains had faded as trading began in Europe.

Trump also reiterated he wanted to reach a deal with China where tariffs would not be anywhere near 145%, adding that he would set the terms of a deal if Beijing did not enter talks.

U.S. Treasury Secretary Scott Bessent was reported on Tuesday as saying he believed there would be a de-escalation in U.S.-China trade tensions, but negotiations with Beijing had not yet started and would be a "slog."

"While it is still early days, the mood in the market is evidently shifting and what was a strong 'sell America' vibe flowing through markets yesterday has in part reversed," said Chris Weston, head of research at broker Pepperstone.

"Markets are becoming ever more conditioned to the president shooting from the hip and then reversing the stance like it was never a big issue."

Europe's STOXX 600 rose 1.7% on a busy day for earnings, with German software company SAP and BE Semiconductor Industries - a supplier to the chipmaking industry - in focus, while a survey of business activity in Germany showed the private sector slipped back into contraction in early April.

A sharp jump in Asian markets overnight saw MSCI's broadest index of Asia-Pacific shares outside Japan up nearly 2%, while U.S. stock futures , rose 1.7-2%, suggesting a rally on Wall Street later.

Sentiment had already been shored up by some upbeat earnings, and Tesla rebounded 5% after the bell despite missing forecasts.

Tesla boss Elon Musk said on a call with analysts he would significantly reduce his involvement in work at the U.S. Department of Government Efficiency from next month to focus more on his many companies.

The dollar rose as much as 1.1% against the Japanese yen , which has served as a major safe haven for anyone ditching U.S. assets, before backtracking to show a gain of 0.1% to 141.82, just above seven-month lows below 140.

The euro was down 0.3% at $1.1383 , while the pound was down 0.2% at $1.331.

Longer-dated Treasuries rallied as Trump's reversal on Powell seemed to ease the threat to U.S. monetary and fiscal credibility.

Investors have been worried that White House pressure to cut interest rates would risk fuelling inflation just as Trump's tariffs boost prices.

However, the big picture has not changed enough at this point to prompt investors to start flocking back into U.S. assets, according to Jefferies strategist Mohit Kumar.

"Volatility is likely to stay, and we would use any sell-offs to add to positions in Europe and Asia. In these markets, it makes sense to remain humble and nimble, focus on the long term views and trade around these headlines," he said.

Yields on 30-year bonds fell 7.5 basis points to 4.804%, while two-year yields rose 3 bps to 3.82%, as investors attached a lower chance of any immediate rate cuts.

Tariffs are expected to hurt the global economy as the International Monetary Fund on Tuesday slashed its forecasts for growth in the United States, China and most countries.

Still, the general improvement in risk sentiment helped oil prices recover some of their hefty losses. Brent crude rose 1.6% to $68.50 a barrel.

Safe-haven gold ran into profit-taking and slipped 2% to $3,314 an ounce , off an all-time peak of $3,500.

Source: Reuters

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Warren Takunda

Economic

The rise in employer National Insurance Contributions and the mandatory hike to the minimum wage, the hallmarks of Chancellor Rachel Reeves' fiscal policy, pushed the UK economy into contraction in April.

The S&P Global PMI survey of the UK's private sector reported a composite reading of 48.2, putting it below 50, which marks the watershed between contraction and expansion.

This represents a notable slowdown from March's healthy 51.5 and disappointed a market consensus that expected a reading of 50.4. In fact, the fall in output was the largest recorded for nearly two and a half years.

"Businesses are reporting more of a struggle to keep their heads above water in April," says Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.

S&P Global reckon the decline represents a quarterly slump of 0.3% in GDP. Reeves & Trump Sink the UK Economy_1

Cost rises are laid at the door of Downing Street, with businesses telling the S&P Global survey that higher National Insurance Contributions and a rise in the National Living Wage are responsible.

"Average cost burdens increased at a sharp and accelerated pace in April. The overall rate of input cost inflation was the fastest since February 2023," said S&P Global.

In April 2025, employers' National Insurance Contributions (NICs) increased from 13.8% to 15% and the secondary threshold, below which employers don't pay NICs dropped from £9,100 to £5,000.

The National Living Wage, for those aged 21 and over, increased to £12.21 per hour on April 1.

Williamson says the survey revealed job cutting is at "aggressive" levels.

Optimism about the outlook has meanwhile collapsed to a two-and-a-half-year low, taking it to one of the lowest levels yet recorded by the survey, even surpassing the low seen in the immediate aftermath of the Brexit vote in 2016. Reeves & Trump Sink the UK Economy_2

"The collapse in confidence and drop in output during April raise red flags as to the near-term economic outlook," says Williamson.

Weaker demand from international markets also weighed on business activity in both the manufacturing and service sectors.

The latest figures indicated that total new work from abroad decreased sharply and at the fastest pace for nearly five years.

The surprising weakness of the survey triggered a knee-jerk move lower in the value of the Pound, although the currency will remain far more attuned to global developments in the current environment.

April's composite PMI weakness was driven by a slump in the UK's dominant services sector, where a reading of 48.9 was reported, down from 52.5 and below expectations for 51.5.

Manufacturing is struggling under the burden of some of the highest electricity costs in the world and tariff uncertainty, printing at 44, which places the sector firmly in recessionary territory.

The slowing economy would typically hint at the prospect of an accelerated pace of interest rate cuts at the Bank of England in an attempt to stimulate the economy.

However, S&P's findings show the Bank might be unable to come to the rescue as businesses confirm the policies introduced by Chancellor Rachel Reeves is proving inflationary.

Source: Poundsterlinglive

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Glendon

Economic

Forex

(April 23): The European Central Bank’s main gauge of future pay growth continued to indicate a sharp slowdown in 2025, underpinning expectations for a further retreat in inflation that may allow more interest-rate cuts.

The ECB’s wage tracker, published Wednesday, predicts salaries will rise by an annual 1.6% in the fourth quarter. That’s just above the 1.5% projection seen in March, and a far cry from the 5.3% peak recorded last year.

The ECB this month lowered borrowing costs for a seventh time but won’t commit to further steps amid what officials have described as “exceptional” uncertainty around US trade policy. Inflation eased to 2.2% in March, with president Christine Lagarde saying the task of hitting the 2% target is “nearing completion.”

Prices in the services sector, where salaries play a large role, are still rising rapidly. But those gains have also leveled off in recent months. Lagarde has said “wages are gradually moderating.”

Backing this, an ECB survey published Tuesday showed greater confidence among companies that pay growth will retreat further — reaching 3% and 2.5% in 2025 and 2026 – down from 4.3% in 2024. The figure for 2025 was 0.5 percentage point lower than in earlier survey rounds, the ECB said.

The latest negotiated pay deals support this view. In Germany, unions representing about 2.5 million public-sector workers agreed to a wage increase of 3% this year and 2.8% in 2026, calling it a “difficult agreement in difficult times.” That’s a level broadly seen in line with price stability.

Investors predict further ECB rate cuts, partly due to uncertainty over global trade and a strengthening euro. The worsening outlook may also make it more difficult for unions to push through wage deals that would worry the central bank.

Source: Theedgemarkets

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Glendon

Political

U.S., Ukrainian and European officials meet in London on Wednesday to discuss endingRussia's war in Ukrainebut chances of any breakthrough look slim after most foreign ministers pulled out despite U.S. pressure for a deal.

U.S. Secretary of State Marco Rubio cancelled his trip to London and a meeting due to also include foreign ministers from Britain, Ukraine, France and Germany was postponed.

A European official said Rubio had indicated concern that Ukraine could revert to its previous tough positions, making any breakthrough at the talks impossible.

The downgrading of the talks comes despite warnings by U.S.President Donald Trumpthat Washington could walk away if there was no progress on a deal soon, and Trump had said on Sunday he hoped Moscow and Kyiv would make a deal this week to end the three-year conflict.

Few diplomats had considered that realistic given the significant gaps remaining.

Rubio spoke to British Foreign Secretary David Lammy late on Tuesday and said he looked forward to rescheduling his trip in the coming months after Wednesday's "technical meetings".

A spokesperson for British Prime Minister Keir Starmer had said the ball was in Russia's court on the talks: "We clearly support President Trump's attempts to bring peace (and) Ukraine's calls for Russia to commit a full ceasefire."

Trump special envoy Steve Witkoff had not been part of the London talks. But, on Washington's parallel track of diplomacy with Moscow, he will meet with Russian President Vladimir Putin this week in Russia, the White House said.

The London meeting is a follow-up to a similar session in Paris last week where U.S., Ukrainian and European officials discussed ways to achieve peace. Trump's Ukraine envoy General Keith Kellogg will still be in London for the talks.

The objective last week was for the Americans, Europeans and Ukrainians to formulate a joint position by trying to move Washington closer to the European and Ukrainian position, European diplomats said.

But some of Washington's proposals were unacceptable to European countries and Kyiv, multiple sources said, leaving the sides divided.

STICKING POINTS

Rubio last week said a U.S. framework that he and Witkoff proposed in Paris received an encouraging reception. But the sources said that among the U.S. proposals was recognizing Russia's illegal annexation of Crimea, a move that is a non-starter for Europe and Ukraine.

Beyond Crimea, other major sticking points remain, including Russia's push for lifting of European Union sanctions against it before negotiations are finished, which Europe staunchly opposes, diplomats said.

European powers last week detailed to the United States what they view as the non-negotiable aspects of a potential Ukraine-Russia peace accord, France's Foreign Minister Jean-Noel Barrot said on Tuesday, playing down chances for a deal this week.

The U.S. proposed last week to establish a neutral zone at the Zaporizhzhia nuclear power plant in Russian-occupied Ukraine, according to European diplomats. Ukrainian President Volodymyr Zelenskiy said on Tuesday he would be ready to partner with the United States to restore the plant, which is not operating.

Some of Washington's ideas are also likely to displease Moscow. Two diplomats said the U.S. was not pushing a Russian demand to demilitarize Ukraine and was not opposed to a European force as part of future security guarantees for Ukraine.

Since taking office in January, Trump has upended U.S. foreign policy, pressing Ukraine to agree to a ceasefire while easing many of the measures the Biden administration had taken to punish Russia for its 2022 full-scale invasion of its neighbour.

The U.S. president has repeatedly said that he wants to broker a ceasefire in Ukraine by May, arguing the U.S. must end a conflict that has killed tens of thousands and risks a direct confrontation between the U.S. and nuclear-armed Russia.

Europe has been increasingly concerned over the Trump administration's overtures towards Moscow, after the failure so far of Trump's efforts to secure a ceasefire in the war.

Source: TradingView

Risk Warnings and Disclaimers

Add to Favorites

Catherine Richards

Cryptocurrency

Bitcoin (BTC) rallied above $93,000, leading to large-scale liquidation of the recently built short positions. For the last 24-hour period, BTC saw over $300M in short liquidations.

Bitcoin (BTC) rallied above $93,000, leading to a liquidation of $300M in short positions. Before the recent price recovery, BTC quickly rebuilt derivative positions, heavily skewed toward short bets. The additional short positions appeared after the low-activity Easter weekend, dominating the available long liquidity.

The recent BTC liquidations were the biggest since March 3, coinciding with the overall recovery following the correction in April. Long liquidations are still happening, but are a fraction of the recent short liquidations.

Bitcoin switches to greedy trading

The move to a higher price range signaled an attack against the more bearish sentiment for BTC. Despite the significant bets that BTC would slide, the market chose to attack the short positions first. After the recent liquidations, BTC has accrued more significant long positions in the $87,000-$89,000 range, with the potential for another price dip to those levels. However, the rapid short liquidations set up expectations that BTC would rally to $100,000 in an extended recovery.

The BTC market sentiment switched within days, driven by the tidal change of derivative markets. The Bitcoin fear and greed index shifted from weeks of fearful sentiment into ‘greed’ territory, rising from 29 to 72 points in the past week. BTC traded at $93,936.38 on Tuesday, riding on the momentum from the start of the new week.

The BTC rally also led to a recovery of altcoins, though the leading coin still had a dominance of 61.2%. The recent BTC rally signals the market is ready to rebound, despite the recent pressure of US tariff negotiations.

Bybit saw the largest liquidations

For April 22, BTC short liquidations reached over $517M, in the higher range for the past few months.

BTC liquidations led to a tidal shift on the market, opening the opportunity for a rally above $93,000.

The liquidations were led by positions on Binance, followed by Bybit. As of April 23, almost all short positions have been attacked and either closed or liquidated. The remaining short positions lead up to the $97,000 range, but at a smaller scale.

BTC open interest continues to recover, gaining another $2B in the past day to over $28 B. The leading coin is still the object of interest for ETF, and long-term whales are buying up the available supply. Increased corporate treasury buying also boosts BTC sentiment. ETF inflows responded quickly to the renewed market sentiment. On-chain data show the ETF inflows had the most successful day since US President Donald Trump took office. In the past day, ETF bought up $912.7M worth of BTC.

BTC is yet to cross above $95,000 and establish a new range. The recent activity is also seen as a potential short-term ‘hate rally’, aiming to liquidate short positions, and it may take a few days to show if the price move was sustainable.

Derivative markets remain more influential, capable of swaying the price in the short term despite the ongoing whale accumulation on spot and OTC markets. BTC exchange reserves are still at an all-time low of 2.5M coins, but the ability to bet on price moves does not depend on the actual supply of freely available BTC.