Copper futures experienced a significant decline on Tuesday, falling more than 2% to approximately $4.41 per pound, marking a two-week low. This drop was largely attributed to a recent briefing from the National Development and Reform Commission in China, which signaled that there would be no additional stimulus measures in the immediate future, disappointing market expectations for further support.

In a bid to foster economic growth, Chinese authorities announced plans to expedite the issuance of special purpose bonds. This initiative aims to bolster the economy, particularly in light of last month’s unveiling of comprehensive economic support measures. These measures included a reduction of banks’ reserve requirements and key lending rates, which had previously provided some uplift to the copper market.

Despite these supportive measures, the absence of immediate stimulus signals has led to a cautious sentiment among traders, who are now awaiting clearer signals of fiscal policy support. The market is particularly focused on the potential for further action from the Chinese government to stimulate demand for industrial metals like copper.

Additionally, commodity prices across the board have been under pressure due to growing expectations of a less aggressive easing campaign from the Federal Reserve. This shift follows a stronger-than-expected September jobs report, which has influenced traders’ outlook on future monetary policy. The combination of weaker stimulus prospects in China and a tightening stance from the Federal Reserve has led to increased volatility in copper futures.

As market participants continue to analyze the evolving economic landscape, copper futures will remain sensitive to both domestic and international economic indicators. Investors will be keen to monitor developments in China, as well as the Federal Reserve's next moves, to gauge their impact on copper demand and pricing.

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