Copper trades weak ahead of China's third plenum – TDS

Jul 9, 2024 1:59 PM

View all comments（0）



China's third plenum on the radar in the coming weeks, and markets are keenly focused on the potential for fresh stimulus in the country, TD Securities Senior Commodity Strategist Ryan McKay notes.

China's third plenum coming, Copper trending weak

“With China's third plenum on the radar in the coming weeks, markets are keenly focused on the potential for fresh stimulus in the Middle Kingdom that could drive commodity demand. Any announcements regarding investment in the grid and clean energy, along with additional support to the property market, are key areas of focus for the market.”

“While investor appetite for Copper in the Middle Kingdom has been muted, top Shanghai Futures Exchange (SHFE) traders have covered their recent shorts heading into the plenum. Furthermore, while the nearest CTA trigger remains to the downside, there is a more of a margin of safety with the trigger sitting at $9,472/t.”

“However, with our gauge of global commodity demand continuing to weaken, while depressed premiums and surging inventories in the Middle Kingdom argue against fundamental tightness, there are plenty of potential catalysts that could still see prices ease once again.”

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Comments (0)

Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.

Commenting Guidelines

Recommended Articles

US Stocks Close: Nasdaq Drops Over 2%, Chip Stocks Fall Broadly, Micron Falls Over 5%, CoreWeave Plunges Nearly 12%

On Friday, October 16, Eastern Time, U.S. stocks moved lower as technology and artificial intelligence (AI)-related shares extended their weekly decline. Investor concerns persisted regarding Chinese semiconductor competition and debt-fueled expansion in AI infrastructure, while rising oil prices also drew attention to the inflation outlook. Energy stocks bucked the trend to gain ground, partially mitigating the Dow's losses. At the close, the Dow Jones Industrial Average fell 0.34% to 52,002.41; the Nasdaq Composite Index dropped 2.14% to 26,140.03; and the S&P 500 Index declined 1.09% to 7,659.44.

Memory Stocks Slide Again as Micron Drops Over 3%, But Goldman Says Market Overestimates CXMT Tech Impact

On October 16, memory stocks suffered another setback on Friday: SK Hynix (SKHY) fell over 5%, while SanDisk (SNDK) and Micron (MU) both dropped more than 4%, bringing their weekly pullbacks to 18%, 15%, and 13%, respectively. Market concerns grew that progress on the 4F2 architecture announced by ChangXin Memory Technologies (CXMT) could ease the memory chip shortage, thereby dragging down prices and manufacturer profits. Behind this pullback lie two questions spanning different time horizons: whether immediate supply remains tight, and how much impact CXMT's future capacity expansion will bring.

Memory Stocks Fall Across the Board as SK Hynix Slumps Over 3% to Lead Losses

Selling pressure on tech stocks re-emerged as memory chip stocks tumbled in unison, with SK Hynix plunging 3%.

Tesla Stock Forecast: Delivery Beat Meets Margin Test as TSLA Defends $355 Before Q3 Earnings

TradingKey - Tesla stock forecast: TSLA defends $355 support after a Q3 delivery beat, but margins, cash flow and robotaxi scrutiny decide the October 21 earnings test.

TSMC Q3 Earnings Beat Estimates: Net Profit Surges 69% to Record High as AI Demand Remains Strong

TradingKey - On October 15, TSMC (TSM) released its third-quarter financial results for 2026. Driven by sustained growth in demand for AI chips and advanced nodes, the company's revenue and net profit both reached record highs, with net profit surging nearly 69% year-over-year and beating market expectations.

Featured Tools