Copper Bulls Disappointed As China Lowers Stimulus Expectations
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The price of copper fell in May, with the commodity ETN iPath DJ-UBS Copper TR Sub-Idx ETN (NYSE: JJC) off by over 12 percent. This will be the third monthly decline for copper, which has been under pressure due to uncertainties in Europe and weakening data out of China.
Copper bulls, who placed their hopes on China stimulus, were disappointed this week when policy advisers there trimmed expectations of a massive stimulus package.
"The Chinese government's intention is very clear, it will not issue another large-scale stimulus plan to boost robust growth," the official New China News Agency said in an article published Tuesday.
Analysts say China will likely opt instead for a modest increase in government spending, which depending on where they focus spending, could provide modest support to copper prices.
Copper miners like Freeport-McMoRan (NYSE: FCX) have fared a little worse than the commodity so far the month, dropping 15.4 percent.
Copper bulls, who placed their hopes on China stimulus, were disappointed this week when policy advisers there trimmed expectations of a massive stimulus package.
"The Chinese government's intention is very clear, it will not issue another large-scale stimulus plan to boost robust growth," the official New China News Agency said in an article published Tuesday.
Analysts say China will likely opt instead for a modest increase in government spending, which depending on where they focus spending, could provide modest support to copper prices.
Copper miners like Freeport-McMoRan (NYSE: FCX) have fared a little worse than the commodity so far the month, dropping 15.4 percent.
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