"Trump trade" cools down and interest rate cut boosts copper prices again [SMM Copper Morning Comment]

LME copper opened at $9,527/mt overnight, initially dipped to $9,490/mt, then climbed throughout the session, fluctuated rangebound at the end, and peaked at $9,688.5/mt, finally closing at $9,678.5/mt. The open interest was 277,000 lots. The most-traded SHFE copper 2412 contract opened at 76,950 yuan/mt overnight, initially dipped to 76,850 yuan/mt, then slightly fluctuated upward throughout the session, peaked at 77,630 yuan/mt at the end, and finally closed at 77,590 yuan/mt, up 2.12%. The trading volume was 44,000 lots and open interest was 152,000 lots. Macro front, the Trump trade cooled down, and the US Fed announced a 25 basis points interest rate cut at its November meeting, with Powell providing no strong hints of a pause in future rate cuts, weakening the US dollar index and boosting copper prices. Domestically, the National People's Congress Standing Committee convened, and the market expects more favourable macro policies to be introduced, leading to a rise in copper prices. On the fundamentals, copper prices have been volatile recently, with both buyers and sellers adopting a wait-and-see attitude, and only a small amount of consumption recovery when copper prices fall. As of Thursday, November 7, SMM copper inventories in major regions nationwide decreased by 5,600 mt compared to Monday to 192,500 mt and down 17,300 mt compared to last Thursday, marking the third consecutive week of destocking. Overall, with the US dollar index retreating, copper prices are expected to be supported today and fluctuate at highs.