JPMorgan Chase and Wells Fargo Took a Hit by Increasing Woes over Financial Risks, Copper Prices to be Weighed on

Published: May 5, 2023 09:55

Source: SMM

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LME copper prices closed at $8,535/mt last evening, up 0.54%. Trading volume was 19,000 lots and open interest stood at 256,000 lots. The most active SHFE 2306 copper contract finished at 66,540 yuan/mt overnight, down 0.67%. Trading volume was 51,000 lots, and open interest stood at 182,000 lots.

On the macro front, ADP said the private sector in the United States added 296,000 jobs in April, exceeding expectations of 148,000 and the previous reading of 145,000. The US labour market remains resilient.

In addition, market concerns have deepened about the health of the US banking industry and regional bank stocks as well as other major financial stocks like JPMorgan Chase and Wells Fargo took a hit. Market concerns increased about financial risks.

In terms of fundamentals, on the first trading day after the Labour Day holidays, the performance of the spot market was relatively quiet, mainly due to adequate inventories restocked previously. Most downstream enterprises stood on the sidelines.

In addition, recent changes in the SHFE/LME copper price ratio can drive inflows of imported copper. The actual market demand is still not strong. Copper futures prices are still fluctuating at a low level, and macroeconomic factors are expected to continue to weigh on copper prices.

SMM Forecast for Copper Prices Next Week

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SMM Daily Comments (Apr 21): Iron Ore Plunged, Metals Prices Fell across the Board, Crude Oil Posted 3-Day Losing Streak

IEA: Global Electric Vehicle Sales Proliferated in 2022, China Led the Growth

US Economy Doomed to Falter as Stagflation Risk Rises amid Slowing GDP

Goldman Sachs, Trafigura See Copper Price Skyrocketing to All-Time High, Citing Stocking Out

Weak Electric Vehicle Pricing Will Spread To New Car Market, Analyst Says

JP Morgan Chase, Citigroup and Deutsche Bank See US Recession in the Cards

Rio Tinto: Pilbara Iron Ore Shipments Hit All-Time High in the First Quarter, Copper Output at 145,000 mt

Goldman Sachs: European Central Bank to Raise Interest Rates Three Times, Ups Forecast for Peak Interest Rate

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