Copper: Still being undermined by macro negativity

Poor macro dynamics
Although LME copper prices found some support at $6,000 per tonne last week, a break below this key level is likely imminently due to the macro negativity stemming from tense US-China relations. The re-escalation in the US-China trade and technology dispute has resulted in a confluence of macro headwinds for copper including a stronger dollar, a weaker yuan, and a reduction in risk-appetite.

In addition, the Chinese economy has shown signs of softening at the start of Q2, evident in the weaker-than-expected activity data for April, after a positive surprise in Q1. Given the deterioration in US-China trade...

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