FX.co ★ Copper Stabilizes on Trade Deal Hopes

Copper futures found stability at approximately $4.57 per pound on Thursday following a sharp decline the day before. This recovery was largely attributed to encouraging developments in trade discussions, which allayed fears of a global economic downturn and bolstered market confidence. On Wednesday, U.S. President Donald Trump suggested forthcoming trade agreements with India, Japan, and South Korea, along with expressing optimism about a potential accord with China. However, earlier market sentiments were shaken when copper prices fell by over 5% due to disappointing U.S. GDP figures, which indicated an unexpected contraction of 0.3% on an annualized basis during the first quarter—the first instance of negative growth in three years. Simultaneously, China's manufacturing sector experienced a downturn, as indicated by the National Bureau of Statistics (NBS) manufacturing PMI, which plummeted to its lowest level in 16 months following a sharp decline in export orders, marking the steepest fall since 2022.