Copper price, stocks are being hammered as Trump tariff, China worries mount

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December copper came under renewed pressure on Monday, falling some 1.7% to under $4.23 per pound in midday trading on the CME in Chicago, bringing losses since a Trump victory became clear to close to 6%.

Stock in BHP, which vies with Freeport McMoRan for the no 2 spot behind Chile’s Codelco as the largest producer, traded down again in heavy volumes on Monday and has now fallen 6% since the US vote bringing the top listed producer’s decline year to date to over 21%. For the world’s number two miner Rio Tinto, the declines are 3% and 16%, respectively.

“Such a slowdown in global growth would clearly be bearish for aggregate commodity price performance, reinforced by its bullish implications for the US dollar. Indeed, though commodities are often seen as an inflation hedge, in this instance – where inflation is neither driven by strong demand growth nor a negative commodity supply shock – they would struggle to live up to that reputation.

 

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