Copper rallies on tariff pause – ING

Copper and other base metals rallied in early morning trading today following President Trump’s 90-day tariff pause, ING’s commodity analysts Warren Patterson and Ewa Manthey note.

Stimulus hopes support metal prices

"Clearly, though, there’s still plenty of uncertainty as tariffs against key metal consumer, China, have been raised to 125%. A prolonged trade war would drag on consumer confidence, weaken appetite for risk and weigh on demand for raw materials."

"However, the prospect of a prolonged trade war has also raised expectations for Beijing to unveil more aggressive stimulus measures. This could cap the downside to copper and other industrial metals."