Global commodities markets are stuck in a holding pattern after China’s latest effort to revive its economy focused on the much-needed restructuring of local government debt, but stopped short of stimulus measures that would directly boost domestic demand.
Delivered by the finance ministry on Friday afternoon, Beijing’s move amounted to a hefty $1.4 trillion bailout to refinance “hidden” debt. Specific steps to revive consumption, however, were lacking — and while raw materials may well benefit from the largesse, it is not yet clear how. Copper, iron ore and crude oil prices all fell after the announcement.
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