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Japanese Prime Minister Sanae Takaichi: Plans to moderately control the issuance of Japanese government bonds.October 19th, Futures News: Crude oil prices fluctuated at high levels, refinery costs remained high, and fuel oil demand was still relatively strong. Refineries increased sales volume and were reluctant to sell at low prices, but downstream buyers were cautious about operating on high-priced resources due to their limited needs. Market buying activity was lukewarm, with upstream and downstream players locked in a battle of wills. It is expected that fuel oil negotiations will remain mostly stable today, with some products experiencing slight price fluctuations depending on their own sales status.Bank of Japan Governor Kazuo Ueda: If fiscal spending can successfully boost Japan’s supply capacity for goods, in the long run, this will in turn help to curb inflation.October 19th - From today (October 19th) to October 29th, the United States, Japan, and other countries will hold the so-called "Keen Sword" joint exercise, centered on Kyushu and the southwestern islands of Japan. This exercise will expand into new domains such as space, cyberspace, and electromagnetic waves, making it the largest in its history. As part of the so-called "exercise of the capability to attack enemy bases in the event of an emergency," the Type 25 surface-to-ship missile, a long-range standoff missile deployed by the Japanese Self-Defense Forces at the end of March, will be deployed for the first time outside its deployment location. It is reported that approximately 45,000 personnel from the Japanese Self-Defense Forces and 12,000 personnel from the US military will participate this year. In addition to Australia and Canada, which have participated in the exercise before, five countries participating for the first time, including France, Germany, and the Netherlands, will also participate in some exercise subjects. The US military will also deploy its latest surface-to-ship missile system, the Naval/Marine Corps Expeditionary Ship Interceptor System (NMESIS), and the integrated air defense system, the Marine Corps Integrated Air Defense System (MADIS), on Yonaguni Island for the first time. In addition to deploying NMESIS and MADIS, the U.S. military will also deploy the HIMARS multiple rocket launcher system on Ishigaki Island.Bank of Japan Governor Kazuo Ueda: The central bank will take into account market conditions, such as whether long-term interest rates are rising too fast or whether there are signs of market instability, in order to decide whether to intervene.

Copper Prices Rise on China Stimulus Hopes, While Gold Prices Remain Stable

Skylar Williams

Aug 17, 2022 11:40

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As the stock market recovered on Wednesday, demand for safe-haven assets declined, while copper prices rose on the possibility of fresh stimulus measures in China, the largest importer in the world.


Spot gold prices were relatively stable at $1,775.35 per ounce at 20:18 ET (00:18 GMT), while gold futures prices remained unchanged at $1,787.70 per ounce.


The yellow metal was pushed down by Wall Street's gain as a run of positive earnings announcements from Walmart (NYSE:WMT) Inc and Home Depot (NYSE:HD) boosted market sentiment.


Despite recent inflationary pressures, the steady performance of retailers indicates that consumer spending, a vital engine of the U.S. economy, has remained resilient.


This increased risk-taking and decreased demand for safe assets such as gold. Expectations of an ongoing increase in U.S. interest rates, which have attracted speculators to the dollar, have also weighed on gold.


The price of gold is anticipated to decline for a third consecutive session and is down more than 2% year-to-date. Other precious metals also traded sideways on Wednesday. Platinum and silver futures fell 0.1% each.


Copper prices sustained Tuesday's solid rise as traders awaited fresh economic development-promoting stimulus measures from China.


Copper futures rose 0.2% to $3.6315 per pound, extending Tuesday's 0.7% increase, following China's announcement of plans to increase infrastructure spending and release additional cash.


Tuesday, Chinese officials declared that the government will accelerate infrastructure construction through the use of special bonds and increased credit guarantees. In addition, the government intends to aid its suffering real estate market by issuing additional loans.


In an effort to boost economic growth in the face of COVID-19 lockdowns, the People's Bank of China surprisingly reduced interest rates this week.


The United States is the world's largest importer of copper, and the possibility of rising economic activity signals a growth in copper demand.


This approach supported the prices of other industrial metals as well. Zinc grew by 2.1%, while nickel rose by 2.5%.