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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
COMMODITIES
- Chinese economic activity continued to decelerate in June according to the Li Keqiang index, which is an economic measurement index that tracks China's economy using three indicators - railway cargo volume, electricity consumption and loans disbursed by banks.
- The chart below shows that the Li Keqiang index has been plunging since its peak reached in February, from a high of 17.61 to 8.05, and generally tends to be a good leading indicator of copper prices.
- Even though some analysts have described the index as an old indicator that does not necessarily represents the Chinese 'new economy', a series of financial assets have also peaked in mid February (i.e. Chinese equities down nearly 15% since mid February).
- Hence, the selling pressure on copper prices could continue in the near to medium term (copper prices are down 10% since May 10).
- Copper front month futures has been trending higher this week and is currently testing it 50DMA at 441.83; a break above that level would open the door for a move up to 450. On the downside, key support to watch stands at 400, followed by 390.60 (200DMA).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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