Posted on 07/15/2022 5:42:52 PM PDT by nickcarraway
Copper has slipped below the $7,000 a ton level for the first time since September 2020.
The commodity, which is a major component in electrical equipment like wiring and motors, fell as low as $6,953 a ton on the London Metal Exchange, as it slipped 1.52% on Friday.
Copper is seen as a key economic bellwether and has entered a bear market before every recession in the last 20 years.
It's now fallen 27.4% year-to-date, with Chinese coronavirus lockdowns driving a broad and deep sell-off.
"This shift in the state of metals pricing today will likely persist until sufficient conviction in the efficacy of Chinese stimulus," a team of Goldman Sachs strategists led by Nicholas Snowdon said. "China will likely break the bear market."
Investors are fretting about a recession as global growth slows, inflation surges, and the Federal Reserve aggressively hikes interest rates to try to tame soaring prices.
Data on Friday showed economic growth in China — the world's largest commodities consumer — almost ground to a halt in the second quarter. Gross domestic product expanded by just 0.4% year on year, missing expectations for an increase of 1% and well below the first quarter's 4.8%, as COVID lockdowns around the country choked off normal activity.
(Excerpt) Read more at markets.businessinsider.com ...
Ping
An old Wall St. cliché goes “every bull market has a copper roof”
What about all the wiring for the Electricity Fairy?
Recession?
No, really...
Price of copper blamed on... 5, 4, 3, 2, 1,...
well silver and gold have been slammed as well.
Rationally I would expect all metals to rebound hard because the cost of Oil is high which increases mining costs, but markets and rational thinking seem to make people poor so ?
Agreed...
Those who warn that normal economic norms are not going to
look the same over the next few years, are talking about
this very thing across the board.
So someone explain why the market is going up
Francisco d’Anconia was unavailable for comment.
Recession means nothing. Inflation means everything.
Markets never go in straight lines.
We’ve seen an awful lot of selloff during this year.
Part of the reason is that people have to do something with
their money. Certain folks will put some in the market when
they think things will get better.
I don’t see a lot of better ahead, but the market’s
resilience has surprised me before.
During the COVID lockdown and business drop-off, it was
amazing how well the market held to its highs and even
went higher.
I’m no expert, so I’d rather see someone else chime in
who knows a lot more about it than I do.
Hope it helps ammunition prices.
Ammo prices hopefully should come down
How does this jive with the earlier story about a copper shortage? Shouldn’t the price be spiking due to shortage???
We don’t want Red China’s economy “expanding”.
It means more money for the Communist military aggression machine. Let their economy tank. Freedom revolutions begin in response to economic tyranny and failed policies.
I have no gold, some silver, and a little bit of copper.
Compared to gold, and even silver, copper is DIRT CHEAP. One would need a ton of it, literally, to make much money if it goes up.
But we’ll always need it. And it’s cheap. I plan on buying more.
Seems like copper price rising would be more sign of looming recession. But I’m not an economist.
Neither am I. It just seems like a good idea to have some copper..
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