SHANGHAI, Nov. 10 (SMM) - Republican candidate Donald Trump beat Hillary Clinton to become the 45th President of the United States. Base metal market surged across the board after the election result. Copper, underperforming others for most part of the year, also outshined. Why does copper market cheer the news? The followings are views of major banks.
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SEB Markets
Bjarne Schieldrop, chief commodity analyst, said Trump’s promise to increase infrastructure spending and to cut taxes has boosted market expectation over copper demand. The view also echoed by Tom Kendall, the analyst from ICBC Standard Bank.
Commerzbank
The bank said that copper market response is overdue, and it is not rational, and noted that projecting of limited copper exports from China is one of copper price drivers.
Societe Generale
The analyst Robin Bhar said market fundamentals see no changes, lending no support to current gains, and in the long run, China-US trade may be harmed by Trump’s protectionist trade policy after taking office.
Goldman Sachs
The bank said Trump’s economic plan will give more favor to zinc and steel products than copper.
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