Commodity prices went up after China’s decision to lower policy rates. According to The Financial Times, that saw copper prices jump up $80 per tonne to $5,050. Aluminum futures gained $23 to $1 563, and zinc $30 to $1 755 per metric tonne.
The decision of The People’ Bank of China to cut its 1-year benchmark lending and deposit rates down 25 basis points to 4.6% and 1.75% respectively will prop up the stumbling Chinese economy and lift commodity prices.
According to the Wall Street Journal, the previous day resulted in a “black Monday” for stock markets: 3-month copper contract hit its 2009 bottom, closing the day at $4,953 per tonne, while aluminum contract has too reached its 6-year low, closing at $1,521.50.