Posted on 01/14/2015 3:10:05 PM PST by blam
Myles Udland
January 14, 2015
Copper took turn for the worst on Tuesday night, falling more than 6% to below $2.50 per pound in New York, a fresh four-year low.
In a note to clients on Wednesday, David Cui at Bank of America Merrill Lynch said this not sending a good signal to the white hot Shanghai stock market, which was the world's best performing stock market in 2014.
Cui wrote that given the widespread use of copper in the Chinese economy, a drop demand — and a resulting drop in price — is often a good indicator of economic health in China, and a likely reason why copper prices and Chinese stocks have correlated well in general.
And with regard to the recent drop in copper prices, Cui writes that, "On balance, we side with Dr. Copper."
(snip)
(Excerpt) Read more at businessinsider.com ...
What is Dr Copper saying today?
ruh roh!
Commodity crash!
Stocks fell for the third day this week and the fourth straight trading session as an overnight collapse in the price of copper and a further drop in US Treasury yields pushed futures lower this morning, with stocks never able to gain meaningful momentum during the day.
Dr Copper is puking.
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