What to Watch as China Gives Commodities a Wild Start to Year

  • Investors bet on rapid recovery for Chinese economy in 2023
  • US inflation data on Thursday will steer Fed’s next move

Crude oil and copper rose on Friday.

Photographer: Andrey Rudakov/Bloomberg
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Commodities burst into Monday in an upbeat mood, with crude to copper rising amid growing optimism over Chinese demand. US inflation figures and a speech by Fed Chair Jerome Powell top this week’s diary as investors mull where raw materials are headed after a volatile start to 2023.

The US data on Thursday will feed into the Federal Reserve’s next steps on rates — perhaps the biggest swing factor for global commodities besides the pace of China’s post-Covid recovery. Also on the watch-list: the latest US government takes on crops and energy markets, China’s December trade figures, and falling natural gas prices across the world.