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Copper retakes $6K/ton as LME orders surge

Published 08/20/2018, 12:48 PM
© Reuters.  Copper retakes $6K/ton as LME orders surge
FCX
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  • Copper rebounds back above $6K/metric ton after data showed orders to withdraw metal from London Metal Exchange warehouses rose by the most in three years.
  • Copper canceled warrants jumped 47% to 36,050 tons, the biggest percentage increase since 2015, LME data showed.
  • The biggest driver for the market remains sentiment around China’s economy and the outcome of the U.S. trade war, and China's plans to send a delegation to the U.S. later this month has renewed hopes of a revival of trade negotiations.
  • Investors "could be thinking it’s a good sign and the risk of a full-blown trade war will be averted,” says Capital Economics commodities economist Simona Gambarini, adding that last week's downward price correction in metals was overdone.
  • Among relevant tickers: FCX +0.6%, BHP +0.9%, VALE +0.4%, RIO flat.
  • ETFs: OTCPK:JJCTF, CPER, CUPM, COPX
  • Now read: Freeport-McMoRan: A Rough Start To The Year


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