China's Credit Downgrade Sends Shockwaves Through Global Markets

Copper futures fell as concerns about China's economic outlook and rising debt levels led Moody's to cut its credit outlook for Chinese sovereign bonds to negative. The downgrade has overshadowed optimism about potential interest rate cuts by the US Federal Reserve, which could boost demand. The sentiment issue affecting demand in China has caused a decline in copper prices, despite expectations of tighter global supply. However, if the government provides support to the economy, particularly the property market, it could help revive demand for commodities. Copper futures on the London Metal Exchange dropped 1.2% following the news.