Market Outlook: Metal Prices Begin the Week with a Decline

Forex - Prices of base metals largely retreated today, influenced by conflicting signals regarding demand, a significant meeting in China, and a prevailing caution ahead of the U.S. elections. At the London Metal Exchange, three-month copper fell by 0.8% to $9,526.50 per ton, while the most actively traded December copper contract at the Shanghai Futures Exchange rose by 0.1% to 76,520 yuan per ton.

China's top legislative body is scheduled to convene from November 4 to November 8. However, the agenda does not mention the highly anticipated debt and other fiscal measures. Investors are reducing their positions amid a flurry of rumors and disappointments regarding potential economic support measures from China.

The U.S. presidential elections on November 5 will determine the policy direction of the world's largest economy for the next four years. Analysts and traders noted that the lack of aggressive Chinese stimulus so far has negatively impacted the outlook for copper demand, though the price is supported by supply concerns amid disruptions in mining and calls for more discipline in China's rapid smelting expansion.