Copper (XCUUSD) Can Statistically be a Winner of Combination of the Chinese Stimulus and an Outcome of the U.S. Elections

Copper rose for a third day on positive Chinese economic data and more signs that the Chinese government will do “whatever it takes” to stabilize its disruptive economic growth. Investors know that the red metal acts as a good proxy for China’s economic outlook.

Red metal’s cash prices climbed as much as ~1% after China’s monthly services activity expanded at the fastest pace since July, following better-than-expected macroeconomic metrics from official and private factory polls last week. Evidently, positive tones of those reports suggest that the recent stimulus may have already produced some positive impact.

The Chinese government is expected to propose additional steps to support the economy at a meeting of the Standing Committee of the National People's Congress this week.

Statistically, as analysts at Citigroup quoted, copper prices used to demonstrate growth on the U.S. Election Days in nine out of 10 previous cycles. The construction metal could spearhead towards $10,000 a ton amid a monetary easing in China and the U.S., a more hopeful equity market sentiment if Donald Trump wins (lower income and capital gain taxes expected), or, conversely, mitigated tariff concerns if Kamala Harris wins, the note said.