Analysts at ANZ said in their latest commodities report that despite an overnight sell-off in Nasdaq tech stocks and rising energy costs weighing on risk appetite, LME three-month copper futures bucked the trend, gaining 1.1% to $14,461.50 per tonne and continuing to fluctuate near record highs.
The rally is being driven mainly by supply disruptions and the return of buyers. A strike by workers at Chile’s Centinela copper mine has heightened concerns about tightening spot supply. Meanwhile, after a week-long holiday in China, traders have returned to the market with a relatively optimistic appetite for purchases, providing solid support for industrial metal prices.
On the macroeconomic front, copper—the “economic barometer”—has remained at elevated levels despite high interest rates and pressure on US tech stocks. This shows that bottlenecks in commodity supply chains and persistent inflation remain significant concerns. It could further complicate expectations for looser global liquidity, while the US dollar and Treasury yields may continue to fluctuate at elevated levels in the short term.
For crypto markets, continued inflows into traditional commodities and volatility-driven pullbacks in tech stocks are diverting some macro-driven speculative capital. $BTC On-chain liquidity and spot trading volumes are in wait-and-see mode in the short term, as investors watch closely to see whether shifts in macro risk appetite will spill over further into crypto assets. 👀
#Commodities #Copper #GlobalMacro
The rally is being driven mainly by supply disruptions and the return of buyers. A strike by workers at Chile’s Centinela copper mine has heightened concerns about tightening spot supply. Meanwhile, after a week-long holiday in China, traders have returned to the market with a relatively optimistic appetite for purchases, providing solid support for industrial metal prices.
On the macroeconomic front, copper—the “economic barometer”—has remained at elevated levels despite high interest rates and pressure on US tech stocks. This shows that bottlenecks in commodity supply chains and persistent inflation remain significant concerns. It could further complicate expectations for looser global liquidity, while the US dollar and Treasury yields may continue to fluctuate at elevated levels in the short term.
For crypto markets, continued inflows into traditional commodities and volatility-driven pullbacks in tech stocks are diverting some macro-driven speculative capital. $BTC On-chain liquidity and spot trading volumes are in wait-and-see mode in the short term, as investors watch closely to see whether shifts in macro risk appetite will spill over further into crypto assets. 👀
#Commodities #Copper #GlobalMacro