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Home‘Canaries In Coal Mines’: Copper and Iron Ore Markets Breaking Down
Posted by Larry Doyle on March 12th, 2014 10:23 AM |
Having focused meaningful attention on developments in China in recent commentaries, I am compelled to draw even further focus to the ‘canaries in the coal mines,’ that is, the copper and iron ore markets.
Let’s navigate eastward once again as the FT writes,
Copper continued to take a pummelling, with Shanghai traded futures in the metal falling by their daily limit on Wednesday morning.
That came after a frenzied day of trading on Tuesday, when copper prices sank below $6,500 a tonne to a near four-year low as concerns mounted over the fragility of the Chinese market. (more…)
Why is Copper Melting Down?
Posted by Larry Doyle on May 17th, 2010 2:26 PM |
If manufacturing and industrial activity is supposedly picking up in the largest economy in the world, that being the United States, then why is the price of the base metal copper melting down?
Let’s look at a WSJ graph of copper for the last twelve months:
We can witness that copper rebounded strongly during 2009, given the global meltup in virtually every risk-based asset. Copper closed out 2009 at approximately $3.35/lb and then proceeded to melt down in January of this year when markets got hit. (more…)
The Reflation Bill Is Outstanding and Growing
Posted by Larry Doyle on April 5th, 2010 11:13 AM |
If we are to believe the markets are predicting a rebound in the economy (I do not blindly accept that to be the case), then it is high time we address the next enormous question facing our country. That is? The bill that has been accruing for the ‘so-called’ saving of our economy.
Whether the economy has been saved or not is a relative question. Please be careful as to how to use that phrase in light of the fact that there are 6.5 million people out of work now for at least 27 weeks (long term unemployed) and close to 17% of our labor force is underemployed.
The biggest question facing our country now is how do we pay for cleaning up this mess that was created over the last number of years? (more…)
February 6, 2010: Market Week in Review
Posted by Larry Doyle on February 6th, 2010 7:37 AM |
Global risks remain high. Global supports remain strapped. What are the results? Markets remain volatile and skittish. Why? Our global economy along with our domestic economy remain under the pressure of massive debts and deficits across the sovereign, corporate, and consumer spectrum.
Global governments can not prop economies and markets forever, try as they might. Can 2010 successfully transition from these total government supported and propped markets to a hoped for return to private enterprise with private capital? The year to date results of this transition are not pretty. We remain a long way from being out of the woods. Pack lightly and lets navigate.
Welcome to our Sense on Cents Week in Review where I provide a streamlined recap of the major economic news and month-to-date market returns. (more…)
Quiet Market? Think Again . . . Copper is Melting Down!!
Posted by Larry Doyle on February 3rd, 2010 3:16 PM |
Just a quiet Wednesday in the markets?
Let’s see . . . major equity averages are flat to down .5% on the day, bonds have backed up 5 basis points but remain within the range, the dollar is doing a little better but not making a major move. Might be a good day to catch the early train home because nothing is going on? Not so fast . . . let’s look a little deeper because I think there is a major move afoot in a certain market segment. What would that be? (more…)
