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Copper rose 2.7% to $3.38 ($7,436) a tonne on the Comex market in New York.

Industrial metals and global equities tumbled in recent months as inflation surged and central banks began rapid interest rate rises that could tip the world into recession.

But investors this week dialed back expectations for US rate rises. Global stocks are up for the sixth day and the dollar weakened from 20-year highs, helping dollar-priced metals by making them cheaper for buyers with other currencies.

“Markets are on edge with central banks so hawkish … but pressure from rising rates should ease at some point,” said WisdomTree analyst Nitesh Shah.

Officials in China said again they would stimulate the economy after covid-19 restrictions caused a sharp slowdown.

Chinese demand should improve, said Shah, predicting price volatility.

“We need to break (above) $7,500 to get bullish,” said a trader in London.

Freeport-McMoRan said copper prices are not high enough to support new mines, which could worsen the already tight supply.