The Zhitong Finance App learned that copper stocks had the highest decline. As of press release, China Gold International (02099) fell 4.43% to HK$172.7; Jiangxi Copper (00358) fell 2.77% to HK$23.86; China Nonferrous Mining (01258) fell 2.46% to HK$11.5; and Luoyang Molybdenum (03993) fell 2.24% to HK$12.21.
According to the news, the Democratic Party won control of the new Senate and House of Representatives in the US midterm elections. Trade-related measures may face more scrutiny, increasing the political resistance of the White House to push forward refined copper tariffs. J.P. Morgan Chase warned at the end of October that the market has begun to pay attention to the risks that may be caused by the delay in implementing US tariffs. If refined copper tariffs are not implemented for a long time, price premiums in some regions may gradually subside.
Great Wall Securities pointed out that after the US midterm election results were implemented, the market re-evaluated AI capital expenditure prospects, and technology stocks fell sharply, fueling market concerns about the return on investment in AI infrastructure and the pace of construction, and early copper demand growth expectations and price support weakened. Furthermore, the stock transfer stimulus brought about by tariffs has subsided drastically, and the market began trading and there was negative feedback after tariffs fell short of expectations or were implemented as scheduled. Overall, the downward pressure on copper prices has not been fully released.