Copper broke higher last week and is now challenging the downtrend from the June 2018 peak. This in response to trade talk hopes, signs of increased construction activity in China combined with the risk that social unrest may add to the expected lack of supply growth in 2020.
Adding to this OECD’s newest data on global leading indicators which hinted that the global economy turned a corner in October, moving from contraction phase into the recovery phase. The uncertainty however is still high and adjustments over the coming months could wash away this on the surface turning point in the global economy.
The quote below is the official press release text.
“Stable growth momentum is anticipated in the euro area as a whole, including France and Italy, as well as in Japan and Canada. Signs of stabilising growth momentum are now also emerging in the United States, Germany and the United Kingdom, where large margins of error remain due to continuing Brexit uncertainty. Among major emerging economies, stable growth momentum remains the assessment for Brazil, Russia and China (for the industrial sector). On the other hand, the CLI for India continues to point to easing growth momentum.” (OECD – Paris, 9 December 2019)