China’s third plenum is on the radar in the coming weeks, and markets are very focused on the potential for further stimulus in the country, notes Ryan McKay, Senior Commodity Strategist at TD Securities.
China’s third plenary session is approaching, copper shows a weak trend
“With China’s third plenum on the radar in the coming weeks, markets are keenly focused on the potential for further stimulus in the Middle Kingdom that could boost commodity demand. Any announcements related to grid investment and clean energy, along with additional support for the property market, are key areas of focus for the market.”
“While investor appetite for Middle Kingdom copper has been subdued, major traders on the Shanghai Futures Exchange (SHFE) have covered their recent short positions ahead of the plenary session. Moreover, while the nearest CTA trigger remains to the downside, there is a greater margin of safety with the trigger at $9,472/t.”
“However, with our global commodity demand gauge continuing to weaken, while depressed premiums and rising inventories in the Middle Kingdom argue against a fundamental shortage, there are plenty of potential catalysts that could still see prices ease once again.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
