Copper prices fell on Tuesday, pulling back from Monday’s record highs as US stockpiling triggered a wave of selling, while China’s renewed commitment to prioritizing domestic growth in 2026 supported demand expectations.

On Monday, London Metal Exchange copper futures jumped as much as 1.3% to reach $11,771 per tonne, surpassing the all-time high set in the prior session.

Copper has been rallying in recent weeks as large volumes of the metal flowed into the United States in anticipation of broader tariff measures, raising concerns over a tightening global supply backdrop.

The latest surge followed China’s announcement — as the world’s largest consumer of copper — that it will maintain a “proactive” fiscal stance in 2026, lifting expectations for stronger industrial metals demand.

Shu Wanqu, an analyst at Cofco Futures, said:

“Data from the Politburo points to a more supportive macro backdrop than markets expected. Copper stands to benefit from government backing for grid-upgrade projects and expanding computing capacity. Momentum remains strongly bullish.”

This bullish view is reinforced by tightening supply in refined copper due to active stockpiling in the US. Analysts at Citic Securities estimate the global refined copper deficit could reach 450,000 tonnes next year.

Citic analysts added in a note that copper prices will likely need to average above $12,000 per tonne next year to attract the mining investment necessary to secure adequate supply over the medium to long term.

Copper prices on the LME have climbed 34% since the start of the year, supported by robust demand from data centers and electric-vehicle manufacturing, along with global supply tightening after several mine shutdowns.

In the United States, Comex copper ended July at a record high amid expectations of new tariff measures.

Meanwhile, the US dollar index rose 0.2% to 99.2 by 15:15 GMT, after hitting a high of 99.3 and a low of 98.9.

During US trading hours, March Comex copper futures fell 2.2% to $5.34 per pound as of 15:05 GMT.

Bitcoin slipped on Tuesday as investors remained cautious ahead of the Federal Reserve’s policy meeting, which begins later today, with markets widely expecting an interest-rate cut.

The world’s largest cryptocurrency fell 0.5% to $90,479 by 09:23 ET (14:23 GMT), staying confined to a narrow $90,000–$92,000 range after a mild pullback at the start of the session.

Caution ahead of the Fed decision

Signs of consolidation dominated Bitcoin’s price action, with traders reluctant to open new positions before the release of key macroeconomic signals.

Markets continue to price in a roughly 87% probability of a 25-basis-point cut at the Fed’s December 9–10 meeting, supported by a stream of softer US data in recent weeks, including a cooling labor market and slower inflation—even if it remains above target.

However, policymakers remain divided on the outlook for growth and inflation, leaving room for a potential surprise should the Fed opt to leave rates unchanged.

A rate cut would typically weaken the dollar and reduce yields on cash and fixed-income assets, making non-yielding alternatives such as Bitcoin more attractive. Much of Bitcoin’s rebound since late 2024 has been fueled by expectations of a prolonged easing cycle.

Strategy acquires 10,624 additional Bitcoin

Nasdaq-listed Strategy — the largest publicly traded company using Bitcoin as a reserve asset — announced Monday that it purchased an additional 10,624 BTC, bringing total holdings to roughly 660,624 Bitcoin.

The purchases were made between December 1 and 7 at an average price of about $90,615 per coin.

The move comes even as the company faces possible exclusion from major equity benchmarks such as MSCI indexes — a development that could trigger significant outflows and add pressure to its stock valuation.

Crypto prices today: Altcoins under pressure

Most major altcoins weakened on Tuesday amid broader risk aversion.

Ethereum fell 1.2% to $3,113.66.

XRP, the third-largest token, dropped 1.6% to $2.06.

Oil prices slipped slightly on Tuesday, extending the previous session’s 2% decline as traders monitored developments in peace negotiations aimed at ending the Russia-Ukraine war, alongside a highly anticipated US interest-rate decision.

Brent crude futures fell 8 cents, or 0.1%, to $62.41 a barrel by 04:09 GMT, while West Texas Intermediate dipped 13 cents, or 0.2%, to $58.75.

Both benchmarks had dropped more than a dollar on Monday after Iraq restored output at Lukoil’s West Qurna-2 field, one of the world’s largest.

Priyanka Sachdeva, senior market analyst at Phillip Nova, said: “Brent’s move back toward $62 aligns closely with December’s broader pattern. The noise around potential Iraqi supply disruptions faded overnight, bringing the market’s focus back to abundant supply and cautious demand expectations.”

Ukraine is set to present a revised peace plan to the United States following talks in London between President Volodymyr Zelensky and the leaders of France, Germany, and the UK.

Tim Waterer, chief market analyst at KCM Trade, noted: “Oil is trading in a tight range as the market waits for clarity on the peace talks. If negotiations collapse, we expect prices to rise. But if progress is made and there’s a possibility of more Russian supply returning to global markets, prices could come under pressure.”

According to informed sources, the G7 and the European Union are discussing replacing the current Russian oil price cap with a complete ban on maritime services — a move intended to curb Moscow’s oil revenues.

Investors are also focused on Wednesday’s Federal Reserve policy decision, with markets pricing in an 87% chance of a 25-basis-point rate cut.

Although rate cuts typically support oil demand by lowering borrowing costs, analysts cautioned that the impact may be limited in the current environment.

Sachdeva added: “While markets are fixated on a potential 25-basis-point Fed cut — which could offer mild short-term support within the $60–65 range — the broader price structure remains tied to expectations of an oversupplied market in 2026.”

The US dollar steadied on Tuesday as traders awaited a widely expected interest-rate cut from the Federal Reserve, while the Australian dollar strengthened after the Reserve Bank of Australia signaled no further near-term easing.

Investors are positioning ahead of the Fed decision, with several other major central banks also set to announce policy moves before the end of the week.

Michael Pfister, FX strategist at Commerzbank, said, “The Fed meeting is tomorrow, so we’re unlikely to see major repositioning before then.”

The dollar index, which measures the US currency against six major peers, slipped 0.1% to 98.977.

Traders also look ahead to the NFIB Small Business Index for November and October’s JOLTS job openings data due later in the session.

Bond investors have scaled back expectations for the pace of rate cuts in 2026, as doubts grow over whether Kevin Hassett — widely viewed as the frontrunner to succeed Jerome Powell when his term ends in May — will be as dovish as President Donald Trump hopes.

Even so, markets see this week’s Fed cut as virtually assured, shifting the focus toward next year’s outlook.

Pfister noted that once the policy statement is released, attention will center on the Dot Plot, pointing to widening disagreement among Fed officials. He added that lower rate-path projections compared with the previous meeting may not offer much support for the dollar.

According to CME’s FedWatch tool, futures imply an 89.4% probability of a 25-basis-point cut at the December 9–10 meeting.

The US 10-year Treasury yield dipped one basis point to 4.1605% after three consecutive sessions of gains to near three-month highs.

Analysts at ING wrote, “Markets have quickly repriced toward higher rates, and the new levels appear justified by fundamentals.”

Euro edges higher… Australian dollar extends gains

The euro rose after Monday’s selloff in German bonds, following comments from ECB Executive Board member Isabel Schnabel, who told Bloomberg the bank’s next move could be a rate hike rather than a cut — though not in the near term. The single currency was up 0.1% at $1.1653.

The Australian dollar maintained its upward tone, rising 0.3% to $0.6645 after the RBA held rates at 3.6% for a third straight meeting and warned that inflation pressures could persist.

Sim Moh Siong, FX strategist at Bank of Singapore, said, “The RBA did not attempt to push back against the market’s hawkish expectations… what was said aligns with the view that the bank is leaning more toward tightening.”

Gains accelerated after Governor Michele Bullock confirmed in a press conference that rate cuts are no longer on the table.

Pfister of Commerzbank added, “The press conference made it clear that cuts are finished — and that the next move could be a hike. That was enough to lift the Aussie.”

Quake pressures yen… yuan and pound rise

The Japanese yen slipped 0.1% to 155.82 per dollar after an initial uptick in early Asian trading, which followed a powerful 7.5-magnitude earthquake in northeastern Japan that triggered evacuation orders and a tsunami warning later downgraded.

Tony Sycamore, market analyst at IG in Sydney, said the initial shock revived concerns about supply-chain fragility, insurance losses, and potential disruptions to industrial output — adding to caution ahead of central bank decisions.

The offshore Chinese yuan rose 0.1% to 7.0623 per dollar as investors interpreted Monday’s Politburo meeting statement as signaling no urgency for additional stimulus.

Sterling climbed 0.2% to $1.33470, while the New Zealand dollar rose 0.3% to $0.57920.