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Recent Copper Correction May Be Signalling Softer Growth Outlook

GLOBAL MACRO

LME copper prices are down 2.5% m/m in July to date after falling 4.6% in June and even though they are off their May peak they are still up 11% y/y. Copper is often a good indicator of global industrial production growth, as it is a common input across sectors, and this year’s rally is signalling that there could be a pick up in the data before IP slows again with trade flows following, which is important for Asia. Other indicators aren’t as positive though.


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LME copper prices are down 2.5% m/m in July to date after falling 4.6% in June and even though they are off their May peak they are still up 11% y/y. Copper is often a good indicator of global industrial production growth, as it is a common input across sectors, and this year’s rally is signalling that there could be a pick up in the data before IP slows again with trade flows following, which is important for Asia. Other indicators aren’t as positive though.


Keep reading...Show less