Macro sentiment improves, copper and aluminum rebound in resonance [Institution Comment]

[Futures Market] During the night session, SHFE copper opened higher and continued to rise. The day session maintained its strength, with the most-traded July futures contract closing at 78,200, up 0.53%. Total trading volume increased, and total open interest rose by over 17,000 lots. Boosted by both SHFE copper and alumina, SHFE aluminum opened higher and continued to rise during the night session, extending gains during the day session and closing strongly. The most-traded July futures contract closed at 20,075, up 0.68%. Total trading volume decreased slightly, while total open interest increased by over 6,000 lots. The most-traded September alumina futures contract closed at 3,063, up 2.17%.

[Analysis] Today, the overall macro sentiment in the market improved, with expectations of a de-escalation in the tariff war. In the afternoon, some commodities that had previously experienced significant declines rebounded, positively impacting the non-ferrous metals sector as a whole. SHFE copper actively expanded its positions above 78,000 today. If the increase in positions continues, the rebound may continue to rise. Aluminum prices have almost recovered from yesterday's losses, with attention on resistance near 20,200.

[Valuation] Copper is slightly overvalued, while aluminum is fairly valued.

[Risks] External risks.

(Source: China Fortune Futures)