If you thought former United States president Donald Trump had the corner on moving global share markets, think again.
After pushing through a US$1.9 trillion (AU$2.4 trillion) pandemic relief package early in his presidency, Joe Biden is now pressing ahead with a US$2.3 trillion infrastructure spending proposal.
Unlike his predecessor, Biden is proposing a massive increase in government funding for renewable energy and electric vehicles (EVs).
Which brings us to ASX copper shares.
Why copper miners are cheering for Joe Biden
If EV adoption takes off in the car hungry US, the demand for copper will too. Although lithium may get much of the headlines when it comes to battery power, EVs also require a lot more copper than petrol cars.
Of course, copper is also used in all types of infrastructure, from electrical wiring to plumbing and roofing.
Adding in the rapid recovery of the US economy as it rolls out some 3 million COVID-19 vaccines per day, which saw March handily beat expectations on new job creations, and it goes a long way to explaining copper's price surge.
As Bloomberg reports, "'The [US] jobs report on Friday is certainly a big thing' for copper's increase, said Peter Thomas, senior vice president at Zaner Group in Chicago." Thomas added that "a lot of copper will be needed" for Biden's infrastructure plan.
Copper prices are up more than 3% so far in April and 89% higher than the lows from 27 March 2020. Thought it's slipped a bit since the 27 February highs, copper is still trading near multi-year highs. And if Biden's plan goes through as the rest of the world begins its own march to recovery, copper prices could go higher still.
Two ASX copper shares
There are a number of quality copper shares trading on the ASX.
On the larger end of the spectrum, you have S&P/ASX 200 Index (ASX: XJO) listed Oz Minerals Ltd (ASX: OZL).
Oz Minerals has a market cap of just over $8 billion and pays an annual dividend yield of 1.1%, fully franked. Over the past 12 months the Oz Mineral's share price is up 212%. That compares to a gain of 31% on the ASX 200. Year-to-date, Oz Minerals shares have gained 24%.
On the smaller end of the ASX copper share spectrum, we find Aeris Resources Ltd (ASX: AIS), with a market cap of $192 million.
The Aeris Resources share price is up 163% over the past 12 months. Or roughly double the increase in the price of copper in that same time. Year-to-date Aeris Resources shares are down 5%.
