This week stock markets in Hong Kong and mainland China saw snap gains on reports that the government might provide support. There are reports about a huge fund (worth about 2 trillion Chinese Yuan or around $278 billion) to stabilise the markets. This intervention was not unexpected as stock prices were getting close to the lowest point in 2022. However, what is new is that we now have an estimate of how much support might be given, and that made investors feel more confident.
We also saw a strong gain in copper prices on this news which is unsurprising. China is the largest consumer of copper globally. China’s rapid industrialisation and urbanisation have contributed to its significant demand for copper, which is used in various industries, including construction, manufacturing, and electronics.
The seasonals are certainly strong for copper too! Is this time for more copper gains?
Check out the video below for more info!
The major trade risk here is that the global economy and/or China slows down and that can decrease the demand for copper.
Remember don’t just trade it, Seasonax it!