Both copper futures and the Chilean peso increased in value on Tuesday, according to published reports.
As Chile's top export, the reddish metal helped the peso climb from its lowest price since September 7, Reuters reports. China, the globe's largest consumer of the reddish metal, is increasingly demanding it, which also enhanced the base metal's price, The Wall Street Journal reports. China accounts for about 40 percent of the globe's consumption of the reddish metal.
The central bank of China boosted liquidity Tuesday with a record injection of 290 billion yuan as part of an effort to alleviate a liquidity pinch.
"The move is intended to address an expected liquidity squeeze ahead of the next week's holiday," states a report penned by analyst Marc Ground with Standard Bank, according to The Wall Street Journal. "Consequently, we feel that the boost to commodity prices should prove temporary, as this is not a measure of outright monetary stimulus motivated by the apparent weakness in the economy."
At 2:32 p.m. on Tuesday, copper futures increased 0.47 percent, a 0.0175 cent lift to $3.749 per pound.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
