Industrial and Base Metals Fundamental Analysis – September 1, 2015 – Forecast – Copper, Palladium & More

Analysis and Recommendations:

Copper continued to fall giving up 30 points to reach 2.316 as traders continue to worry about the global commodities situation ahead of Chinese PMI data tomorrow. Palladium eased by $2.27 to 587.88. Analysts attributed the fall in copper futures to weak cues from Asian region as investors assessed weekend comments from top central bankers on inflation, and awaited China manufacturing data due Tuesday.

Meanwhile, copper fell 0.3% on the Shanghai Futures Exchange, after advancing to the highest close in more than two weeks on Friday. Industrial metals started the day lower after the Shanghai Composite Index closed down. “The metals markets have switched back to risk-off mode again today and find themselves under corresponding selling pressure,” said Commerzbank AG in a note.

A cut in interest rates by the People’s Bank of China provided only brief respite to prices, doing little to alleviate the market’s concerns about the slowing of China’s economy. The central bank’s moves followed a series of economic interventions by the government in recent weeks.

Going forward, some analysts are focused on concerns over whether supply will outpace demand next year and cap price gains. Aluminum and copper are causing particular concern, not least given the sheer size of these two markets.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, September 1, 2015

Government Bond Auctions

Date Time Country

Sep 01 11:15 Austria Holds RAGB bond sale

Sep 01 00:00 UK Announces details of 3.5% 2045 Gilt

Sep 02 11:03 Sweden Holds bond auction

Sep 02 11:30 Germany Eur 4bn 0.25% Oct 2020 Bobl

Sep 02 11:30 UK Auctions new Jan 2021 Gilt

Sep 03 10:30 Spain Auctions Bonos/Obligaciones

Sep 03 11:10 France Auctions OATs

Sep 03 00:00 US Announces details of 3yr note on 08 Sep, 10yr note on 09 Sep

Sep 03 00:00 US Announces details of 10-year note on 09 Sep