China is driving Copper higher
China is driving Copper higher
SCCO, FCX, JJC, COPX
The data over the weekend showed China’s November industrial production gains of 10.1%, which is the highest reading since March. Higher production and higher Copper demand are good leading indicators.
Copper futures are tapping the highest prices in 7 wks, with Comex March futures prices up 1.4% at over $3.71 lb.
If China has about 40% of global Copper demand, then higher industrial production would drive up demand yes.. The other good news out of China was that its consumer prices rose only 2% in November, meaning that inflation is in check.
It is somewhat interesting that Southern Copper Corp. NYSE:SCCO is not responding much more positively, perhaps because shares rose from 36 last week to 38.25 Monday.
Freeport-McMoRan Copper & Gold Inc. NYSE: FCX, is still suffering analyst downgrades after last week’s unpopular acquisition, is off another 0.4% at 31.60 today, its share price is not going to react just to metals prices only in here IMO.
There are gains in the iPath DJ-UBS Copper TR Sub-Idx ETN (NYSEArca: JJC), as the Key exchange-traded product that tracks Copper, with a gain of 1.3% to 46.83, against a 52-week trading range of 21.61 to 51.41.
An ETF that tracks Copper miners is the Global X Copper Miners ETF (NYSEArca: COPX), it is a penny at 12.95, against a 52-wk trading range of 10.30 to 15.82.
China will likely stimulate its economy further, and with its low inflation rates Copper demand should grow in the immediate future. Stay tuned…
The Heffernan Group of Companies is a leading provider of consulting, technology, research and management services dedicated Governments, Funds, Listed Companies and High Net worth Individuals. Our clients call us when they need help with strategic, operational or market challenges. They look to us for honest, objective advice in delivering results. Read More
Heffernan Capital Management
Business Development Director – Private Client Group,
3 Raffles Place #07-01
Bharat Building Singapore 048617
Tel: +65 6329 6408
Fax: +65 6329 9699
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
Best Hedge Funds 2013
Working with some of the World’s largest financial institutions HCM’s goal is to provide portfolio returns that exceed the S&P 500 Index benchmark while …
UAE Economy Seeing a Spring Boom
Driven by stable high Crude Oil prices, tourism, diversification and a liberal trade policy, the United Arab Emirates (UAE) witnesses an unprecedented …
As debt-laden Dubai’s economic recovery continues, with grandiose projects making a comeback, the emirate faces some near-term maturity of debt racked up during pre-crisis years but the …
The Hot List
Enviro-Serv Inc (OTCMKTS:EVSV), Medical Marijuana Inc (OTCMKTS:MJNA)
Enviro-Serv Inc (OTCMKTS:EVSV)
EVSV had a stellar dy yesterday, ut it looks like it is just the begining of big things, good …