Copper Futures Close Higher on Equities Strength and Positive Economic Outlook

Strategic Insights -

Copper futures closed higher on Wednesday as strength in equities and positive economic indicators, including constructive earnings reports and improved trade data from China, boosted investor confidence. The most-active December copper contract rose 5 cents to settle at $2.8445 per pound on the Comex division of the New York Mercantile Exchange. Analysts attributed the increase to the positive atmosphere created by Intel's earnings report, as well as better-than-expected results from J.P. Morgan Chase. The improved equities also hinted at a more positive economic outlook, boding well for future copper demand.

Key Takeaways:

  • Copper futures closed higher on Wednesday, driven by strength in equities and positive economic indicators.
  • The most-active December copper contract rose 5 cents to settle at $2.8445 per pound on the Comex division of the New York Mercantile Exchange.
  • Analysts attribute the increase to Intel's earnings report and J.P. Morgan Chase's better-than-expected results, which created a positive atmosphere in markets.
  • Chinese trade data showed a 23% increase in copper imports in September, exceeding market expectations of a decline.
  • Analysts expect Chinese imports to remain firm due to steady economic growth and increased demand for manufactured products in the Western world.
  • Despite the increase, copper still remains within a trading range, and analysts do not expect a significant test of the $3 level in the near future.
  • Inventories of copper stored in London Metal Exchange warehouses rose 5,725 metric tons, leaving them at 353,225.
  • The most recent Comex inventory data showed an increase of 423 short tons, bringing the total to 56,442 short tons.

Statistics:

  • Copper futures rose 5 cents to settle at $2.8445 per pound on the Comex division of the New York Mercantile Exchange.
  • Chinese imports of copper, copper alloy, and semi-finished products increased by 23% in September, to 399,052 metric tons.
  • Iron-ore imports rose 30% in September, to an unspecified amount.
  • J.P. Morgan Chase reported better-than-expected results, contributing to the positive atmosphere in markets.
  • Intel's earnings report was also cited as a factor contributing to the increase in copper futures.
  • The Dow Jones Industrial Average rose 75 points, while the December dollar index fell 0.410 points, which tends to help metals in general.
  • Inventories of copper stored in London Metal Exchange warehouses rose 5,725 metric tons, to 353,225.
  • Comex inventory data showed an increase of 423 short tons, bringing the total to 56,442 short tons.

Sources:

  • Dow Jones Commodities News via Comtex
  • Allen Sykora, Dow Jones Newswires
  • Bill O'Neill, LOGIC Advisors
  • Frank Lesh, FuturePath Trading
  • Bart Melek, global commodity strategist with BMO Capital Markets