Copper Rallies on China Output Cut

Copper in London surged to the highest level since 2014 after China ordered its top producer to halt output to combat winter pollution, adding further impetus to a rally in the metal this year that’s been driven by optimism about demand as well as supply disruptions at mines. Copper rose as much as 1.2 percent to $7,210 a metric ton as trade resumed after the Christmas break, and was at $7,187 at 10:06 a.m. in London. Gains now run to nine days, the longest streak since 2004 with the metal up nearly 30 percent this year, surpassed among LME metals only by aluminum.

The advance in 2017 has been backstopped by supply disruptions just as the outlook for global growth improves and investors and miners target potential new uses, including in electric vehicles. The world’s largest producer, Chile’s Codelco, has forecast that prices may test record highs above $10,000, while UBS Group AG’s wealth management unit on Wednesday predicted further gains.

Source: Copper Rallies to Three-Year High as China Plant Halts Output – Bloomberg

Markets Quiet in Run Up to New Year

EUR/USD – Euro Edges Up, U.S. Consumer Confidence Next

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.