Copper Prices Soar, Mining Stocks Follow: China's Fiscal Shift Drives Market Surge

Shares of global copper miners soared, pushing the sector gauge – the Global X Copper Miners ETF COPX – up by 2.6% for the day. Copper mining stocks experienced a similar response to the surge in copper prices on Tuesday, which rose over 2% on the day hitting one-month highs.

The catalyst for the rise in copper mining stocks derived from China, as the People’s Bank of China (PBOC) made an unprecedented move by reducing the seven-day reverse repurchase rate by 10 basis points from 2% to 1.9%. This marks the first rate cut since August 2022.

The rate cut follows the recent actions of China’s six state-owned commercial banks, which lowered deposit rates, effectively signaling a new phase of policy stimulus in response to the economic slowdown.

Officials are also considering a comprehensive package of stimulus measures, including support for the struggling real estate sector and domestic demand.

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Best Performing Copper Miners On Tuesday, June 13

• Freeport-McMoRan FCX jumped 5.3%, marking its second-best daily performance in 2023. FCX is up 5% so far in 2023.
• Filo Mining Corp. FLMMF was 5% higher.
• Ero Copper Corp. ERO gained 3.8%. ERO is up 42% thus far this year.
• Southern Copper Corp. SCCO surged 3.2%. SCCO has gained 18% so far in 2023.
• First Quantum Minerals Ltd. FQVLF rose 2.9%.

Chart: FCX vs. ERO vs. SCCO Year-to-Date Performance

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