On the commodity front, it’s worth watching copper as its bullish momentum is impressive. It surpassed the $9,000/ton mark in less than 2 weeks since the state of 2023 on optimism that the re-opening of China could increase demand for the metal in a sustainable manner.
China’s GDP growth in Q4 has been impacted by zero Covid tolerance policies but, as these policies are gradually lifted and becoming a thing of the past, change could be very well laying ahead of the road.
Copper, besides being used almost everywhere – from electronics, wire, electric vehicles, and various other industrial uses – is also used by economists as an indicator of economic growth. When copper demonstrates a strong demand, it leads to positive economic moves ahead, and when the demand is weakening this could be an early alert of a potential economic slowdown. So far, despite all the recession warnings, demand for copper seems to be picking up as can be seen from its explosive move in the past couple of days.
Copper, gold, the stock market, and Bitcoin are gaining higher ground at the start of 2023, while the USD dollar seems poised to continue to weaken, barring any surprises from the Fed or any unexpected geopolitical risk.
China re-opening is boosting demand for raw materials including copper and oil, as well as investment growth expectations for the year. The last statistic says when January ends on a positive note in the stock market, the whole year can end on a positive note. So far, by mid-January, this seems to be well within grasp, barring any unexpected surprises.
Disclaimer
The products offered by the Company are complex and entail a high risk of losing money rapidly. You should consider whether you have the appropriate knowledge and understanding of how the products work and if you can afford to take such risk. Consider reading our TMD and other legal documentation available on our website before using our services. CFD traders do not own or have any rights to the underlying assets. The information provided is general and for information purposes only and does not take into account the clients’ personal needs, objectives or financial situation; you may consider seeking independent advice.”
*information regarding past performance is not a reliable indicator of future performance.
*forecasts are not a reliable indicator of future performance.
