Donald Trump’s win has raised hopes that US demand for industrial metals can increase if the new president steps up spending on infrastructure.
Those hopes are feeding into higher metal prices, with the Bloomberg Industrial Metals Index gaining by 2.2% on 9 November.
Copper prices on the London Metal Exchange rose by 3.5%.
Goldman Sachs analysts said they expect industrial metals including zinc, steel, iron ore, cement and nickel to benefit from an increased focus on infrastructure, according to a 10 November Bloomberg report.
Copper prices have been increasing due to an improving outlook for China’s economy, according to a 9 November report in The Wall Street Journal.
Why demonetizing Rs500 notes made sense
The withdrawal of the Rs500 note from 8 November has hit the public harder than the removal of the Rs1,000 one as many daily wage labourers, domestic workers and those belonging to the lower income strata hold these notes.
But data shows why removal of the Rs500 note made sense and was in fact more warranted than banning Rs1,000 notes.
From a volume perspective, the share of Rs1,000 notes in total currency circulation has only risen from 6.6% in 2014 to 7% this year, shows data compiled by Kotak Institutional Equities.
Also, according to the report, value-wise the share of Rs1,000 notes largely remained stagnant in 2015-16 (see chart 2).
It is Rs500 notes that have seen a noticeable rise in both volume and value terms as shown in chart 1.
Also, the detection of counterfeit notes is the highest in the Rs500 denomination during fiscal years 2015 and 2016, Reserve Bank of India data shows.