Prices of copper and industrial metals rise supported by optimism about the global economy

Prices of copper and a group of industrial metals rose on Thursday, amid a wave of optimism about the global economic outlook, supported by improved investor sentiment following the results of the US midterm elections announced on Wednesday.

The three-month benchmark copper price on the London Metal Exchange rose 0.48 percent to $14,078.5 per metric ton by 03:00 GMT. The most traded copper contract on the Shanghai Futures Exchange rose 0.71 percent to 108,250 yuan ($16,221.85) per ton.

Investors hope that the division of power in Washington will reduce the volatility and unpredictability of policies that have burdened global markets during the administration of President Donald Trump.

In energy markets, oil prices fell sharply overnight, amid investor bets that the shift in the balance of political power in Washington may accelerate the end of the US-Israeli war with Iran, which negatively affected copper prices by weakening global economic growth expectations.

The copper market is still in short supply outside the United States. In China, the world's largest consumer of the metal, the Yangshan premium, an indicator of Chinese demand for copper imports, rose to $205 per ton on Wednesday, its highest level in 12 years.

But copper's gains remained limited by concerns that a Democratic victory would curb the expansion of artificial intelligence infrastructure investments, which are relied upon to boost demand for the metal.

In Asian stock markets, the South Korean KOSPI index, which is heavy on technology company stocks, fell by about 4 percent, approaching its lowest level in seven months, and the benchmark index in Taiwan and the Japanese Nikkei index also declined.

Industrial metals received additional support from the decline of the US dollar by 0.18 percent, which made goods denominated in the US currency less expensive for buyers using other currencies.

On the other hand, shares of solar energy and clean energy companies rose, amid bets that Democratic control will help maintain federal support allocated to developing the clean energy sector.

Nickel, used in the manufacture of batteries and steel, was one of the most prominent winners, as its price rose on the London Metal Exchange by 2.26 percent, and on the Shanghai Futures Exchange by 4.6 percent.

Among the metals traded on the London Stock Exchange, aluminum rose by 0.95 percent, zinc by 0.55 percent, lead by 0.77 percent, and tin by 1.61 percent.

On the Shanghai Stock Exchange, aluminum increased by 0.3 percent, zinc by 0.83 percent, lead by 0.53 percent, and tin by 2.98 percent.

Russia's services sector approached recession in October, with a very slight increase in production volume and a decline in new orders for the first time in three months, according to a business survey published Thursday.

The Standard & Poor's Global Purchasing Managers' Index for the Russian services sector fell to 50.1 points in October, compared to 51.3 points in September. A reading above 50 points indicates growth, while a reading below it reflects contraction, according to Reuters.

New business fell for the first time in three months, while demand for exports fell at a sharp and accelerating pace. Standard & Poor's Global indicated that the decline in international demand was the third largest decline since December 2022.

On the other hand, employment returned to record growth after eight months of job cuts, although the rate of new employment was limited. Backlogs also fell again, marking the sixth decline in the past seven months, as the weak flow of new orders allowed companies to fill earlier orders.

On the price front, inflationary pressures intensified during the month, as the pace of rise in production input costs accelerated for the first time in three months, while companies raised selling prices at the fastest pace in eight months, in an attempt to bear customers a portion of the high costs.

Also, business confidence declined for the second month in a row in October, remaining below its average levels recorded since the beginning of 2026, and well below its historical average, in light of the continuing state of economic uncertainty and its impact on companies’ expectations.

The American Democratic Party succeeded in transforming economic pressures and the high cost of living into a comprehensive focus of its electoral campaign, overcoming some of its internal differences between the moderate movement and the progressive wing, in a strategy that helped it achieve a broad victory in the midterm elections, and seize control of both chambers of Congress and a large number of state governorship positions.

According to an analysis published by the Wall Street Journal, the most prominent factor behind this shift was the ability of the Democratic candidates to unify their rhetoric around the ability to afford the cost of living, while holding President Donald Trump’s policies responsible for the pressures facing American families, instead of being drawn into the cultural and social issues that weakened the party in previous electoral elections.

The results of a voter poll conducted by the Associated Press and American television networks reveal that 89 percent of participants considered the cost of living a major or important factor in determining their electoral choices, with high fuel and food prices topping the list of concerns.

The success of the economic message was not limited to candidates affiliated with the progressive movement, but was also adopted by moderates, even if the two parties’ proposals to address the crisis differed. Thus, the party was able to present a joint electoral discourse despite the continuing differences regarding its political and economic orientations.

An electoral alliance that transcends divisions

Factors that helped Democrats expand their support base include selecting candidates with a local presence and the ability to attract independent voters. Especially in states that have been dominated by Republicans for decades.

According to the newspaper, the party relied on figures from diverse professional and social backgrounds, including doctors, nurses, clergy, farmers, union leaders, teachers, and former military personnel, in an attempt to regain the confidence of segments of the working class that had distanced themselves from the Democrats in previous elections.

Electoral groups that had supported Trump in the 2024 elections also returned to the polls in favor of the Democrats, including young people and Latino voters, in a shift that reflected the fragility of the electoral alliance that helped the American president return to the White House.

This shift extended to states with a solid Republican orientation, as Democrats achieved gains in Texas, Kansas, and South Carolina, benefiting from the focus on living burdens, objection to trade policies, and the repercussions of the war on Iran, which raised the costs of fuel and fertilizers and burdened large sectors. Especially in rural areas.

In Texas, Democratic candidates James Talarico and Gina Hinojosa were able to achieve a remarkable political breakthrough, through a speech that focused on the ability to afford living costs, combating corruption, and limiting the influence of billionaires, in a state where Democrats have not achieved a victory in executive positions since 1994.