Copper futures saw a strong rebound today as a recent correction led way to a recovery amid hopes of Chinese demand holding up. Equities were mixed today. Asian stocks corrected today. China’s Shanghai Composite index fell 0.46% while Japan’s Nikkei 225 index eased 0.11%. Hong Kong’s Hang Seng index also softened 0.03%. European stocks are mixed with German DAX adding 0.28% and French CAC sliding 0.27%. US stock market was shut yesterday due to Memorial Day holiday.
COMEX Copper soared above $4.80 per pound mark though and currently quotes at $4.82 per pound, up 1.50% on the day. Bulks of these gains were linked to reports stating that Shanghai, China’s financial hub has reduced down payment ratios and the mortgage rate floor for first-time homebuyers. This is expected to shore up the ailing housing market. The city reduced down payment ratios by 10 percentage points to a minimum of 20% for first-time buyers. The ratio was lowered to 30% from 40% for second-home buyers.