Copper expands decline due to risk-off mentality

Copper futures fell to around $4.05 per pound on Thursday, hitting a low since early April, as risk-off mentality due to a sharp fall in the stock market dominates financial markets.

While there are no specific and strong policy measures to revitalize the economy and revive the real estate sector, demand concerns in China, which is a top consumer country, also continued to put pressure on copper prices.

Meanwhile, the Central Bank of China lowered interest rates on one-year medium-term loans with an unplanned surprise amid the authorities' efforts to support the economy with monetary stimulus measures.

Regarding China, which is the world's second-largest economy, investors are paying attention to the latest manufacturing and service industry data to be announced next week.

Other than that, since the Indian government announced that it would continue spending on infrastructure development, there is a possibility that copper prices will be supported by improved sentiment.