For those interested in investing in copper, you should know that the price of the base metal reached a four-month high on July 17. In a mid morning trading session in London, copper prices were up 1% at $5,986.50 a metric ton, which marks the highest price since the first few days in March.
The increase came after optimistic Chinese economic data suggested that there might be not a slowdown in the metal’s largest market like many had once forecasted. On Monday, the Chinese government restored confidence in copper investors after releasing GDP and industrial production data.
With that said, Commerzbank advised investors against transitioning into copper too quickly. “[We] do not believe the momentum will be maintained throughout the second half year.”
Needless to say, copper investors will be examining Chinese house price index data for any signs of market softness. The data will be released on July 18. Looking further down the road, it is likely that market observers will start to focus on the meeting of the European and Japanese central banks, said Nitesh Shah of ETF Securities’. Essentially, information on European Central Bank balance sheet tightening would be of interest.
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