Preliminary U.S. midterm results favoring Democrats pressured equities and
pushed copper down for a second session. Copper, used heavily in data centers
and power transmission, has been undercut by recent concerns about AI-related
spending. On Tuesday copper slipped below $14,000/tonne for the first time since
September, risking a break from a roughly two-month trading range. Analysts say
traders tend to trim risk ahead of midterms and that copper’s near-term path
will hinge on U.S. equity direction. With early returns tilting Democratic, the
odds of Washington gridlock have risen; greater regulatory scrutiny of
high-growth sectors could weigh on stocks and the dollar, though a weaker dollar
would typically support dollar-priced commodities.
