We have a somewhat strange divergence between the metal and major producer Freeport McMoRan's stock. This is notable because they tend to run together, at least directionally if not in magnitude on time frames as granular as hourly prints. And as to which one is "right" I'm not much help, though my bias is to trust the metal over the equity.
FCX up 2.64% at $38.92, most active U.S. copper futures down 2.45 cents (0.65%) at 3.7420 after the Shanghai futures settled down over 1%.
From Reuters via Pakistan's Business Recorder, January 4:
LONDON: Copper prices slipped on Wednesday to five-week lows as the market focussed on slowing growth and demand, while a lower dollar capped losses ahead of a statement from the U.S. central bank.
Benchmark copper on the London Metal Exchange traded down 1% at $8,235 a tonne in official rings from an earlier $8,188 a tonne, the lowest since Nov. 30. Technical support is at 8,150, where the 50-day moving average currently sits.
Minutes of the Federal Reserve’s Dec. 13-14 policy meeting due at 1900 GMT could provide clues to future U.S. interest rate moves and dollar direction, a key variable behind industrial metal price moves.
Surging COVID cases in top consumer China after the easing of restrictions have reinforced worries about demand, already under pressure from weakening global industrial activity.
“Globally, it doesn’t look good for industrial metals. China’s rapid reopening remains in focus with optimism around reopening, tempered by the number of cases,” a metals trader said. “The softening dollar is lending some support.”
A lower U.S. currency makes dollar-denominated metals cheaper for companies operating in a non-dollar environment, which could boost demand....
....MUCH MORE
The dollar index futures are trading at 104.00 down 0.30% and the dollar is .13% weaker against the yuan at 6.8875
