This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
After hitting a three-month low copper did manage a reasonable bounce, but since contradicting housing data was posted by the US on Tuesday and Wednesday the price has broadly traded sideways.
The overriding issues surrounding copper remain. A number of large producers have already stated that they are seeing an increase in supply due to increased productivity in their mines, and on the demand side of the equation Europe is still in a recovery phase – although France looks like it is coming perilously close to turning back into a recession. The fear of this is shackling the ambitions of European manufacturers and subsequently their productivity.
With the US shut due to the Thanksgiving holiday volumes on commodities will be very low, and as a consequence traders should be conscious of a greater chance of volatility.