Skip to main content

MARKET UPDATE - CME

MARKET UPDATE - CME

TAKING THE PULSE OF DR. COPPER FOR 2019

Copper prices could be driven by a confluence of factors in 2019. Among them being the pace of growth in China, which has been taking on more debt to stimulate the economy. The strength of the U.S. dollar in relation to the Fed’s rate hikes, growing budget deficit, Brexit and Italy’s debt could also play pivotal roles.

Highlights

  • Copper rose 72% in 2016-17 on Chinese growth but is down 18% so far in 2018

  • Supply likely continued to grow in 2018 as mining profitability remained strong

  • Price trend for 2019 will depend on Chinese demand, U.S. dollar strength

  • Brexit outcome, Italian debt concerns could also influence copper next year

[READ MORE]

 

RISK DISCLAIMER: Trading in futures products entails significant risks of loss which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies cited herein is not necessarily indicative of future performance. The information contained herein is provided to you for information only and believed to be drawn from reliable sources but cannot be guaranteed; Phillip Capital Inc. assumes no responsibility for errors or omissions. The views and opinions expressed in this letter are those of the author and do not reflect the views of Phillip Capital Inc. or its staff.