Commodities: Copper
Copper plunged over -4% last night to its lowest level since April, the industrial metal has now corrected ~12% leaving us neutral, the current pullback might be correcting the entire post COVID advance.
Copper has fallen almost 10% from its mid-May high, topping almost in sync with the Dow but interestingly the Australian copper stocks have recovered much of their losses as they appear to be picking a bounce by copper, we’re 50-50 at MM waiting for better risk / reward towards the sector.
Conversely OZL has led the rally in copper hence in sync with our view that markets are poised to rotate away from the reflation trade the risk / reward for OZL is not attractive at current levels.
Copper actually made fresh 5-week lows last Thursday which has largely been ignored by the likes of OZ Minerals (OZL).
