Copper Bull Run extends on demand, longest since October
Copper traders are Bullish for a 4 week running, the longest since October, as manufacturing strengthens from China to the US and stockpiles decline to the lowest in more than 2 yrs.
Analysts surveyed expect the Red metal to extend the gain into next week. Inventories tracked by the London Metal Exchange fell to 292,250 metric tons Thursday, the lowest since August 2009, and orders to withdraw more metal are close to an 8-yr high, exchange data show.
Copper rose 13% to 8,612.25 a ton this year on the LME, the best start to a year since Y 2008.
Manufacturing from China to the US is expanding as the American recovery strengthens and European leaders work to contain the region's debt crisis.
That is boosting demand for raw materials from consumers and investors, with Barclays Capital predicting a 3rd consecutive annual shortage in global Copper supplies in Y 2012.
Commodities beat stocks, bonds and the USD for the first time since July last month.
Copper rose 13% to 8,612.25 a ton this year on the LME, the best start to a year since Y 2008. The Standard & Poor's GSCI gauge of 24 commodities climbed 9.4% and MSCI All- Country World Index (MXWD) of equities advanced 11%. Treasuries lost 0.3%, a Bank of America Corp. index (MXWD) shows.
Paul A. Ebeling, Jnr. Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels. www.livetradingnews.com