BBG: Commodities surge after China eases some Covid restrictions

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BLOOMBERG reports:

Commodities from oil to iron ore and copper jumped after China eased some Covid restrictions, raising hopes over a demand recovery in the world’s second-biggest economy. 

Almost all major commodities traded higher following news that China reduced the amount of time that travelers and close contacts of infected people must spend in quarantine, a significant amendment of the Covid Zero policy. 

Oil futures in New York and London added more than 2%, while iron ore traded in Singapore soared as much as 8.2%. Copper, precious metals and agricultural commodities also all climbed. 

The China news strengthened a rally that began on Wall Street, with risk assets broadly higher as lower-than-projected US inflation data set the stage for a slowdown in aggressive interest-rate hikes. A gauge of the dollar has fallen sharply from its 2022 high in recent days, aiding commodities priced in the currency. 

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