(Bloomberg). — Investors tried to assess the prospects for China’s economy in the face of slowing growth, as well as the possibility for stimulus next year. 

Shanghai fell, after it reached its highest level in over a month on Tuesday. London rose following a two-day trading stop. The iron ore markets in Singapore and China fell for the third consecutive day.

China’s economy expanded at a moderate pace in December on better business sentiment, although a slump in the property sector and weakening external demand continue to cloud the outlook, according to Bloomberg’s aggregate index of eight early indicators for this month. The largest source of base metals demand is from the property sector. 

China may add additional stimulus next year in an effort to slow down the economy. The People’s Bank of China is set to use monetary policy tools to ensure liquidity, while the finance ministry has said it will roll out fiscal policies. 

In the latest virus developments, China continues to deal with a cluster of Covid-19 cases concentrated in the city of Xi’an. These cases are rising amid an increase in global hospitalizations and a worldwide record for daily records.

Shanghai’s most active copper contract saw a 0.3% drop, while London prices rose 0.8%. After a six-week gain, iron ore futures declined by 1.4% to $116.90 per ton in Singapore. However, steel rebar futures and hot-rolled coil futures remained steady in Shanghai.

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