(MB) Base metals prices on the Shanghai Futures Exchange were mostly up during Asian morning trading on Monday January 7, supported by improved risk appetite on China’s aggressive monetary easing and the expectation that the US Federal Reserve would pause its monetary policy tightening this year.Base metals found support from Federal Reserve chairman Jerome Powell’s dovish comments at the American Economic Association (AEA) last Friday. Powell said that the US central bank is not on a preset path of interest rate increases and that it will be sensitive to any downside risks. Market participants widely interpreted this to mean a slowdown in the pace that the Federal Reserve would raise interest rates, which has boosted sentiment in the base metals markets this morning. “Equity markets usually struggle as cash becomes tighter during a Fed rate hike cycle, triggering investors to reduce risk.
