As noted in previous reports, copper’s 56% surge from the March low is showing little signs of abating, after the price of the ductile metal soared to a fresh two-year high (3.0945) at the beginning of the month on the back of rebounding global manufacturing activity and soaring Chinese demand.
However, the reimposition of coronavirus lockdown measures in several European nations and the lack of progress in Congressional stimulus talks may cap the potential upside for the global growth proxy, as British Prime Minister Boris Johnson urges residents to work from home if possible and introduces new restrictions that are likely to last for the next six months.
That being said, copper prices have remained relatively unaffected by the ‘second wave’ of Covid-19 infections and recent resurgence of volatility, with the ductile metal climbing 0.81% in September despite the CBOE Volatility Index (VIX) spiking as much as 53%. Read more…..
Chart of the Day
Bloomberg Intelligence’s Mike McGlone explains market signals from the gold-to-copper price ratio in today’s “Futures in Focus” on “Bloomberg Markets.”