China's $570 Billion Stimulus Is A Boon For Copper
Safehaven - Copper and iron ore prices have held up surprisingly well as markets in the West belatedly come to grips with the coronavirus pandemic and China shifts focus from containment to rebuilding its economy following more than two months of inactivity.
On Wednesday BMO Capital Markets held a conference call with PRC Macro, a consulting firm focused on China’s political economy, about the prospects for 2020 GDP growth in the country.
PRC Macro anticipates spending by Beijing of as much as $570 billion primarily focused on infrastructure. PRC Macro says “in order to declare an economic victory, a 5 percent growth rate is the absolute minimum that will be acceptable”:
There are two parts to the stimulus plan.