Advances to manufacturing in the globe’s largest consumer of copper helped drive up the base metal’s price on Friday, according to Bloomberg.
Chinese manufacturing expanding at its fastest pace in about two years also has traders bullish about copper futures as 11 of 22 anticipate the industrial metal will climb next week. Six traders said it would not while five remained neutral on the matter.
“Copper is one of those metals that people feel is linked to the industrial cycle,” analyst Carole Ferguson with brokerage and advisory SP Angel Corporate Finance in London told the news source on Friday. “Demand is obviously returning, we’ve had good numbers coming out of China and the U.S. definitely looks as if it’s in a recovery trend.”
At 12:47 p.m. on Friday, copper futures lost 0.71 percent, a 0.026 cent loss to $3.65 per pound.
Copper Investing News reports analysts with Morgan Stanley forecast the reddish metal to increase in value 7.6 percent this year, based largely on increased demand deriving from China, the U.S and Europe.
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.
