Copper, often seen as a barometer for the overall health of the global economy, has been feeling the pinch in the face of an increasingly gloomy outlook. The red metal has been hit hard by lackluster industrial indicators and, with the trade war between China and the US spiraling, there seems to be little on the horizon to offer near-term support. Bank of America/Merrill Lynch — which told clients previously that three conditions needed to be met for a rally in copper: a weaker dollar, stronger Chinese data, and the de-escalation of the trade dispute, said in a recent note: “Unfortunately, none of these have materialized and, as a result, copper has been under pressure. To that point, global average PMIs would justify prices 30% below current levels, i.e. at $4,400/mt”.
展开▼
