Freeport-McMoRan (NYSE:FCX) +2.1% pre-market on Friday as copper prices extend recent gains on optimism after top metals consumer China cut a key interest rate for long-term loans, and Shanghai authorities prepare to lift some COVID-19 lockdowns, Reuters reports.
London Metal Exchange benchmark copper (HG1:COM) recently rose 0.8% to $9,490/metric ton, its highest since May 6, capping a 3.3% gain for the contract so far this week.
China cut its benchmark reference rate for mortgages by an unexpectedly wide margin, seeking to revive the ailing housing sector to prop up the economy.
"Previously the supportive measures for the property market were very targeted, but this is a more visible and widespread supportive signal," said Xiao Fu, head of commodity market strategy at Bank of China International, according to Reuters.
"China is planning to open its economy gradually and go for easy lending, which is providing a positive impact to base metals," said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.
LME prices for aluminum, lead, zinc and tin all trade higher, while nickel turned lower.
With the dollar soaring to a 20-year high against a basket of major currencies, copper prices plunged below $9,000/ton last week for the first time since October.