Commodities: Copper
Copper largely ignored the significant volatility in equities last week finally closing marginally higher, we remain bullish the industrial metal and its related stocks but as we saw on Friday when the ASX is smacked over 2% few names can evade the aggressive selling.
DR copper as its so often referred to has edged higher this week helped by the stimulatory actions / noises from China, if we are correct it should soon be on its way to test the $US500/lb psychological level.
We continue to believe that the classic value names such as the resources will drag the local index to fresh pastures as we start to outperform the tech heavy US indices – Just as they have since August last year. The energy transition that is underway will underpin demand for raw materials particularly those described as ‘future facing commodities’ such…
