The battle of who will tariff last took a new twist this morning. Chinese President Xi Jinping has promised to open the country’s economy further and lower import tariffs on products, including cars. He made the announcement in a speech Tuesday. Today’s speech supports what President Xi has been saying in recent weeks. Many observers see this announcement as an attempt to defuse an escalating trade dispute with the United States.
“President Xi’s speech appears to have struck a relatively positive tone and opens the door to potential negotiations with the U.S. in our view,” economists at Nomura told Reuters. “The focus now shifts to the possible U.S. response. But of course, actions speak louder than words. We will keep an eye on the progress of those opening-up measures.”
Xi’s comments sent stock markets and the dollar higher. Typically, the higher the dollar, the lower the price of copper. The red metal opened for trading on the COMEX this morning at $3.10 a pound. This after finishing up 1.04% last week as stockpiles edged lower from the highest level since 2014.
CESCO Week
CESCO (Center for Copper and Mining Studies) Week is in full swing in Santiago. The annual copper industry gathering kicked off Sunday in the Chilean capital, with about 2,000 local and international market participants in attendance to discuss the outlook for copper prices and mining as a whole.
One key topic at this year’s CESCO Week is the topic of Electric Vehicles (EV), but don’t expect the trend to buck the price of copper any time soon.
“While EVs are a great long-term story, demand is only expected to be around 1.5 percent of world refined copper consumption this year, and even five years out is unlikely to be anything more than 3 percent,” CRU analyst Robert Edwards said in a Reuters article.
Looking Ahead
Ahead of the coming week, Investing.com has compiled a list of the main economic events likely to affect the markets.
Tuesday, April 10
Australia is to publish a report on business confidence.
Canada is to produce data on building permits.
The U.S. is to report on producer price inflation.
Wednesday, April 11
China is to publish data on consumer and producer price inflation.
The UK is to release figures on industrial and manufacturing output and trade.
European Central Bank President Mario Draghi is to speak at an event in Frankfurt.
The U.S. is to produce data on consumer inflation.
The Federal Reserve is to publish the minutes of its March meeting.
Thursday, April 12
Bank of Japan Governor Haruhiko Kuroda is to speak at an event in Tokyo.
The ECB is to publish the minutes of its March Meeting.
Canada is to report on new house price inflation.
The U.S. is to publish the weekly report on initial jobless claims.
Bank of England Governor Mark Carney is to speak at an event in Toronto.
Friday, April 13
China is to publish trade figures.
The U.S. is to round up the week with a report on consumer sentiment.