Beijing reduced quarantine times for travelers and close contacts of infected people, lowered the threshold for isolation, and scrapped a penalty on airlines that bring new cases into China. Bloomberg’s comment: “Commodities From Oil to Zinc Soar After China Eases Covid Rules”
While still far more stringent than most of the world, the new rules mark a significant easing on a strategy that sapped government finances, battered the economy, and drove growing public frustration. Many rules remain in place, though, with residents of Guangzhou — one of China’s most economically vibrant cities — trading stockpiling tips ahead of a feared Shanghai -style lockdown.
Commodities from oil to soybeans to precious metals jumped after China eased some Covid restrictions, raising hopes of a demand recovery in the world’s second-biggest economy.
Base metals traded on the London Metal Exchange jumped with zinc soaring as much as 6.4% and aluminum gaining 5.9%. In the US, Chicago soybean futures had the biggest intraday increase in a month, settling at $14.50 a bushel.
Shares of companies across the commodities industry surged. Century Aluminum Co. jumped 23%, the most in six years, while top US producer Alcoa Corp. surged as much as 16%. Offshore oil and gas driller Transocean Ltd. added as much as 14% and oil refiner Phillips 66 climbed 5.6% to the highest since January 2020.
