Copper prices declined on both the London and Shanghai exchanges during Thursday’s trading, amid a stronger US dollar against most major currencies and ongoing pressure on the markets ahead of the new US tariffs on copper imports, set to take effect on August 1.

During Thursday’s session, the most actively traded copper futures contract on the London Metal Exchange fell by 0.2% to $9,617.5 per ton as of 2:55 p.m. Mecca time.

Meanwhile, the most traded copper contract on the Shanghai Futures Exchange dropped by 0.15% to 77,840 yuan ($10,838) per ton.

According to analysts at ANZ Bank in a note quoted by Reuters, they stated that Trump’s announcement of a 50% tariff on copper imports would likely push the US market to rely on domestic stockpiles in the near term, putting downward pressure on copper prices in both the COMEX and London exchanges.

Data released Wednesday showed that copper inventories at the London Metal Exchange rose by 10,525 tons, reaching 121,000 tons, as eight new warehouses in Hong Kong officially began operations this week.

On the other hand, the US Dollar Index rose by 0.3% to 98.6 as of 16:10 GMT, recording a high of 98.9 and a low of 98.3.

In US trading, copper futures for September delivery fell by 0.6% to $5.49 per pound as of 16:06 GMT.

Bitcoin prices held largely steady on Thursday as the US House of Representatives moved closer to debating a series of digital asset bills, following a nine-hour deadlock.

The world’s largest cryptocurrency rose slightly by 0.2% to reach $118,747.5 as of 2:25 a.m. Eastern Time (06:25 GMT).

Bitcoin had surged earlier this week to record highs above $123,000, but later retreated below $116,000 amid profit-taking at historical peaks and growing concerns over US tariffs.

Crypto legislation clears key procedural vote

Late Wednesday, the US House narrowly voted in favor of formally opening debate on a package of digital asset bills, including the GENIUS Act, which establishes a federal regulatory framework for stablecoins.

The vote passed 217 to 212, after hours of internal negotiations among Republicans, who were divided over whether to advance the bills individually or as a single package.

This vote marks the first meaningful legislative breakthrough in what lawmakers have dubbed “Crypto Week”—a coordinated effort to bring regulatory clarity to the US digital asset sector.

Among the other bills under discussion are: the CLARITY Act, which aims to define whether tokens should be classified as securities or commodities, and the Anti-CBDC Surveillance State Act, designed to prevent the Federal Reserve from issuing a central bank digital currency (CBDC).

The procedural vote had stalled on Tuesday due to internal Republican disagreements, but gained momentum following intervention from President Donald Trump and House Speaker Mike Johnson.

Nevertheless, the narrow margin and continued uncertainty around the final vote have dampened momentum, keeping Bitcoin in a tight trading range.

Market cautious ahead of final vote

Traders are now awaiting the outcome of individual House votes on each bill, expected later this week, which could determine whether the cryptocurrency sees another breakout similar to last week’s.

Bitcoin is currently attempting to reclaim the $120,000 level, with many market participants asking: what could trigger a break above $130,000 or $150,000?

Technical analysis and institutional demand support Bitcoin

From a technical standpoint, Sunday night’s surge above $120,000 was driven by a short squeeze in the futures market, which triggered liquidations exceeding $1 billion across exchanges, according to data from Coinglass.

According to Ray Salmond, Head of Markets at Cointelegraph: “The spot market momentum needed to maintain prices above $120,000 isn’t clearly visible on centralized exchanges... but strong, ongoing global demand through bitcoin ETFs, public companies building bitcoin treasuries, and infrastructure investment continues to support the price.”

With CPI and PPI data due this week, and markets having absorbed the next wave of tariffs set to take effect on August 1, the risk-off sentiment that hit Wall Street earlier in the week appears to have eased.

Several developments have helped lift market sentiment, including President Trump’s success in advancing the procedural vote in the House on the GENIUS and CLARITY bills.

Bitcoin ETFs see highest inflows in three months

Reports indicate that Cantor Fitzgerald and Adam Back are nearing a SPAC deal that could provide Cantor Equity Partners with as much as 30,000 bitcoins.

Technical targets and upcoming resistance levels

On Bitcoin’s daily chart, an inverse head and shoulders pattern has been confirmed, with price closing above $112,000 on Thursday. This technically opens the door to a target around $143,000.

As the futures market continues to drive price discovery and short-term moves through liquidations, a sustainable push toward $150,000 will likely require consecutive daily closes above the $130,000 level.

Oil prices rose on Thursday despite what appears to be a breakthrough in global trade tensions, as analysts pointed to falling inventory levels and the return of geopolitical risks in the Middle East as key factors supporting the market.

Brent crude futures climbed by 17 cents, or around 0.3%, to reach $68.69 per barrel as of 10:50 GMT. Meanwhile, US West Texas Intermediate (WTI) crude futures rose by 35 cents, or 0.5%, to $66.73 per barrel.

US President Donald Trump stated that notification letters regarding US tariff rates for smaller nations would be sent soon. He also hinted at the possibility of reaching an agreement with China on illegal narcotics, as well as a potential deal with the European Union.

Ashley Kelty, analyst at Panmure Liberum, said: “Prices are expected to remain volatile in the near term due to uncertainty over the final scope of US tariffs and their impact on global economic growth,” adding that prices could stabilize at lower levels in the medium term.

Oil market reacts to tightening inventories

John Evans, analyst at PVM Oil Associates, said that Thursday’s oil market also responded to a tightening inventory scenario.

The International Energy Agency stated last week that recent increases in oil production have not translated into higher inventory levels, suggesting that markets remain thirsty for additional crude.

Evans noted: “Oil market focus had recently shifted away from the Middle East, but the reminder of Israel’s strikes in Syria, along with drone attacks on oil infrastructure in Iraqi Kurdistan, came at a fitting time to reintroduce some tension and energy into the scene.”

Drone attacks cut production

According to two energy officials on Wednesday, drone strikes on oil fields in Iraq’s semi-autonomous Kurdistan region reduced crude output by up to 150,000 barrels per day, due to infrastructure damage that forced production to halt at multiple sites.

Market still suffering from tight supply

Giovanni Staunovo, commodity analyst at UBS, said: “So far, market indicators suggest that the physical oil market remains undersupplied,” while also warning that continued trade tensions could weigh on the outlook for oil demand growth, posing downside risks to prices.

The US dollar recovered during Thursday’s trading after President Donald Trump dismissed fresh rumors of his intent to fire Federal Reserve Chair Jerome Powell. Meanwhile, a strong earnings season helped end a four-day losing streak for European stock markets.

The pan-European Stoxx 600 index (.STOXX) opened notably higher, supported by record order volumes announced by Swiss engineering giant ABB, and a record profit of $13.5 billion reported by Taiwanese chipmaker TSMC. Investor sentiment was also buoyed by renewed optimism over a potential trade agreement between the EU and the US following talks in Washington.

Markets were also awaiting key US data on retail sales and jobless claims for further insight into how tariffs are impacting the economy, alongside the European Commission’s proposal for a significant increase in the EU budget.

Currencies in the Spotlight

Currency markets remained the primary focus. The US dollar rose 0.4% to $1.16 per euro, rebounding to levels seen before what Société Générale analyst Kit Juckes called “Wednesday’s madness,” when reports that Trump was preparing to fire Powell sent markets into a brief panic—before Trump later denied the claim.

In Japan, the dollar found additional support as polls showed that Prime Minister Shigeru Ishiba’s coalition risked losing its Senate majority in upcoming elections. This political uncertainty pushed the yen to its weakest level since April, trading at 148.73 per dollar.

Data also showed that Japanese exports are beginning to suffer from tariffs, with shipments declining for a second straight month. Meanwhile, the Australian dollar dropped 1% overnight following weak employment data.

Juckes noted: “The market is heavily exposed against the dollar, and now that we’re deep into summer, some investors have begun buying the greenback again.”

US equity futures pointed to a slightly higher open on Wall Street later in the day. In Europe, stocks rose 0.7%, snapping a four-day losing streak, while Asian markets saw gains between 0.3% and 0.6%, including the Nikkei (.N225), Taiwan Weighted (.TWII), and China’s CSI 300 (.CSI300).

In a notable development in the M&A space, Canadian retailer Alimentation Couche-Tard (.ATD.TO) announced it was withdrawing its $47 billion bid to acquire Japan’s Seven & i Holdings (.3382.T), citing a “lack of constructive engagement” from the operator of the 7-Eleven convenience store chain. Shares of Seven & i fell to a three-month low, ending the day with a loss of over 9%.

Trump Calms Markets—For Now

Trump’s swift denial of the Powell rumors helped temporarily stabilize volatile markets, though he left the door open to the possibility and reiterated his criticism of the Fed Chair for not cutting interest rates.

Francesco Pesole, analyst at ING, wrote: “After yesterday’s panic, markets may have become a bit more resilient to headlines on this issue,” adding, “But during that hour, we saw the expected reaction: a sharp steepening of the US yield curve and a notable drop in the dollar.”

Short-term US Treasury yields declined amid speculation that any potential Powell replacement would be ultra-dovish, likely favoring deeper and faster rate cuts.

Meanwhile, the yield on 10-year US Treasuries stabilized at 4.4714% during European trading, while German bund yields held steady at 2.695% after hitting their highest level since late March earlier in the week.

As of 11:59 GMT, the US Dollar Index had risen 0.3% to 98.7, after touching a high of 98.8 and a low of 98.3 during the session.