Economic bellwether copper hits 7-year peak, ends lower on Brexit, US stimulus frets

by   |  VIEW 1141

Economic bellwether copper hits 7-year peak, ends lower on Brexit, US stimulus frets

On Friday, the copper futures’ prices, a closely monitored fundamental to business investments, fell on Friday after hitting their highest level since the March of 2013, mostly hurt by the frets over a likely drawdown in Brexit negotiations alongside fading hopes of a second round of US stimulus package, while a week-end profit-taking sell-off wave had also weighed heavily on copper futures’ prices.

On top of that, a gauge of global equity indices tumbled in line with copper futures’ prices amid waning prospects of a US stimulus bill alongside UK PM Bori Johnson’s downbeat remark over Brexit negotiations.

In point of fact, UK PM Boris Johnson and EU Commission Chief Ursula Von der Leyen were quoted saying earlier in the European trading hours that the United Kingdom would more likely to face off a disorderly exit from the European Union.

However, copper futures’ alongside other industrial metals had been witnessing a maverick upsurge over the recent weeks following a barrage of upbeat China data, underscoring a strong demand, while an apparent supply chain disruption due to the pandemic outbreak added to further bullish wing.

Copper hits seven-year peak amid growing China demand

Citing statistics, on Friday’s commodity market round off, benchmark copper futures in the London Metal Exchange, which gained as much as 82 per cent after hitting a four-year low in March this year, shrugged off 1.3 per cent to $7,776 after hitting a session high of $7,973.50 per ton, remarking the highest level since the February of 2013.

Among other industrial metals, London Metal Exchange nickel futures’ prices jumped to a 14-month high of $17,660 per ton, however, had wrapped up the day 0.6 per cent lower. Nonetheless, amid growing uncertainties over a pandemic associated slump in investors’ morale, Aluminium fell 1.8 per cent, Zinc shed 2.7 per cent and lead faltered 1.6 per cent.

Alongside this, several analysts had branded the Friday sell-off as a profit-taking move from the market participants, while an analyst at Carsten Menke at Julius Baer in Zurich said in the day’s commodity market wind down, “So much good news has already been priced into the market.

Profit-taking after such a strong rally is not surprising and we also have risk-off sentiment today in the equities market.