Copper Futures Dragged Down by China’s Credit Downgrade
- Negative outlook offsets optimism around US interest rates
- Copper had earlier rallied on bets of peak rates, tight supply
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Copper futures fell as concerns about China’s economic outlook continued to dim forecasts for market demand.
Moody’s Investors Service cut its outlook for Chinese sovereign bonds to negative, underscoring deepening global concerns over debt levels in the world’s largest consumer of commodities. Those concerns have more than offset optimism that the US Federal Reserve might cut interest rates next year, a move that could boost demand and allow companies to hold more inventory for longer. The firm last cut its credit rating on China in 2017.