Market uncertainty remains LME copper continues to fall

At 1610 GMT, the LME benchmark three-month copper was down 1.
6 percent at $
7,683 a tonne.
The contract fell to $6,955 on July 15, a 20-month low
.
Since then, copper has rebounded nearly 15 percentage points, but is still 29.
2% below its all-time peak in early March, though well above prices for much of the past decade
.

On Tuesday evening, U.
S.
House Speaker Nancy Pelosi visited China's Taiwan region, which is also the highest-level visit
to the United States in 25 years.
Analysts say there are quite a few concerns
about this.
After Biden took office, people had expected an improvement in U.
S.
-China relations, but now they seem to be hitting a new low
.

Investors and traders are concerned that new geopolitical tensions will adversely
affect demand for copper and other industrial metals.
Chinese stocks fell on Wednesday as investors worried about
the risk of escalating tensions across the Taiwan Strait.

The prospect of a global recession due to aggressive rate hikes by the US central bank has already overshadowed sentiment before the US creates new geopolitical tensions
.
Federal Reserve officials said on Wednesday that the U.
S.
central bank would be hawkish in its quest to reduce inflation
.
Analysts said that relative to China's steady growth path, the Fed's future interest rate decision is still the biggest uncertainty
in the market.

It comes two weeks after expectations that the Federal Reserve may slow the pace of interest rate hikes and more economic stimulus in China helped copper rebound about 15 percent
from a 20-month low hit on July 15.