China Manufacturing Expansion Lifts Copper; Oil Surge Clouds Emerging Markets

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China’s factory activity expanded in April, lifting copper prices and ending a five-day slide. Oil surged to multi-week highs, weighing on emerging market equities as HSBC and NAB cut profit forecasts over Middle East war risks.

1. China Manufacturing Activity Expands

China’s manufacturing PMI climbed into expansionary territory in April, driven by improved production orders and easing supply constraints despite external geopolitical pressures.

2. Copper Rebounds on Factory Output

Copper futures reversed a five-day decline, with renewed demand from Chinese factories supporting higher metal prices and improving market sentiment.

3. Oil Surge Pressures Emerging Markets

Brent crude oil prices jumped to multi-week highs, weighing on emerging market stock indices and setting Indian equities for a lower open.

4. Banks Trim Profit Forecasts Over War Risks

HSBC and National Australia Bank trimmed their 2026 profit forecasts, citing heightened volatility and cost pressures stemming from ongoing Middle East conflict.

Sources

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