Base metals prices on the London Metal Exchange were predominantly higher during morning trading on Wednesday October 24, buoyed by a bounce in Asian stock indices while a two-month high in the US dollar index did little to offset fresh buying momentum.
Despite high risk-aversion prompting a downtrend in base metals prices earlier in the week, investor confidence was lifted on Wednesday morning with key Asian stock indices ticking higher. Of note, Hong Kong's Hang Seng climbed over 0.25% in the morning while the Shanghai Composite Index gained 1% on top of a 4% climb on Tuesday. Efforts to bolster the economy in China continue to be the key momentum drive in the equity market, with Beijing publishing draft rules for tax deductions on Saturday in a bid to boost consumer spending and stabilize its slowing economy, supposedly benefiting up to 60% of Chinese taxpayers. "Clearly, the proposed deductions will cut the tax bills of the majority, but it is doubtful whether these deductions are large enough to increase consumer spending to the point where it can...