[SMM Copper Morning News] Trade recovery superimposed on Brexit progress to boost the copper market

SMM, 11 Oct:

Overnight, the overall performance of the market rose sharply, Lun copper straight to the $5800 / tonne level, closed at $5780.5 / tonne, up 1.63 per cent. Shanghai copper returned to the 47000 level, closing at 47010 yuan / ton, up 0.66 per cent. The Shanghai copper index reduced its position by 6712 to 564000. The session rose sharply, mainly due to moderation in Sino-US trade sentiment and a sharp boost in market confidence, while the dollar fell to 98.6 levels, a new two-week low, as expectations of a bigger Fed rate cut weighed on the dollar, hitting a new two-week low. The copper market was boosted sharply. At present, the market is dominated by optimistic news, and both China and the United States have expressed the hope that the trade negotiations will proceed smoothly and reach a consensus to prevent further escalation. At the same time, Brexit is progressing smoothly, and the active meeting between British and Irish leaders has brought the UK and the European Union one step closer to reaching a Brexit agreement, with sterling rising more than 1.93% a day, the market risk aversion is weak, and CMX spot gold has fallen back below the $1500 / oz mark. On the whole, the current market optimism has overshadowed the essence of macroeconomic weakness, and has a strong driving force for the short-term rush of copper prices, but we still need to guard against its short-term effects. Copper prices are expected to remain high and stable today. Spot, recently, due to low copper prices to attract positive downstream buying, the current copper price performance rebounded, the market buying sentiment is expected to be suppressed, quotation rising space is limited. It is estimated that Lun copper 5750-5800 US dollars / ton, Shanghai copper 46700-47200 yuan / ton, spot water 150-180 yuan / ton.

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