Spot Copper at $2.22 TodayThis is, after all, a copper play ... mostly.
From the Wall Street Journal, July 4, 2016:
By Katherine Dunn
LONDON—Copper prices rose to a fresh two-month high Monday in London, as expectations of further easing by central banks pushed up commodities as a whole.
The London Metal Exchange’s three-month copper contract was up 0.56% at $4,933 a metric ton in midmorning trade, its highest price since May 2. The metal has risen every day since June 24, erasing an initial drop following Britain’s vote to leave the European Union.
Markets have largely recovered from the turmoil following the Brexit vote on a belief that the economic uncertainty will stave off an interest rate rise by the U.S. Federal Reserve this year and potentially spur stimulus from other central banks.
It was a quiet day across the market, as traders in the U.S. were away from their desks for the July 4th holiday.
The industrial metal’s gains were moving in lockstep with rising markets across commodities, including oil. Crude oil was up 0.45% on Monday, to $49.21. Copper is often traded in baskets with other commodities.
With little sign of increasing demand from China, the world’s top consumer, the recent rally in copper prices appears to have been fueled by short covering on expectations that China will introduce further stimulus, said William Adams, director of research at FastMarkets.
“That suggests sentiment isn’t bullish, it’s just less bearish,” Mr. Adams said.
Investors will be watching for further clues on the strength of the U.S. economy later this week, with the release of June’s Federal Reserve meeting minutes and nonfarm payrolls data.
That could affect the strength of the dollar, which in turn affects the price of all dollar-denominated commodities, and could also raise or lower expectations of a rate increase this year.
The other base metals were also higher on Monday. Aluminum was up 0.48% at $1,666 a ton, zinc was up 0.56% at $2,160.50 a ton, nickel was up 3.88% at $10,320 a ton, lead was up 0.97% at $1,781 a ton, while tin was up 2.45% at $17,800 a ton.