Copper Fundamental Forecast – September 12, 2016

Copper gave up 8 points after the release of mixed Chinese inflation data and lower Japanese industrial activity. Copper is trading at 2.092. With copper and iron ore prices rising, and even the Baltic Dry Index suggesting a pickup in global demand, now might seem like the perfect time to buy metals and mining stocks. Nomura, however, urges caution.

“Several analysts have revised their corporate models for European metals and mining companies following their calendar year results. Although our analysts believe the miners are largely taking the right steps to reposition their business models for the current downturn, they do not believe the achieved or expected self-help initiatives justify the current rebound for the sector,” Nomura reports.

“Additionally, the major risks to the Chinese economy have not been alleviated and thus they expect Chinese demand to remain poor. With demand stagnant and supply more resilient along with new, lower-cost supply still to come for iron ore and copper, analysts expect commodities markets to remain broadly in oversupply,” it adds.

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Upcoming Economic Events that you should be monitoring:

 September 12, 2016

Government Bond Auctions

Date Time Country Auction

Sep 12 11:30 Germany Eur 2bn Mar 2017 Bubill

Sep 12 13:00 Norway Details of bond auction on Sep 14

Sep 13 11:00 Netherlands Eur 2-3bn 0% Jan 2022 DSL

Sep 13 11:10 Italy Holds bond auction

Sep 14 11:05 Norway Holds bond auction

Sep 14 11:30 UK 0.125% 2046 I/L Gilt

Sep 14 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund

Sep 15 10:30 Spain Holds bond auction

Sep 15 11:03 Sweden Holds I/L bond auction

Sep 15 11:50 France Holds bond auction