Market Summary: Caution prevails

Caution prevails
Base metal prices have been undermined by an overall risk-off environment on growing recession fears following the inversion of the US yield curve last week, despite a slight de-escalation of US-China trade tensions.

Aluminium: Modest rebound, but hard to be bullish

Given the current macro backdrop and aluminium’s own micro-dynamics, we remain cautiously bearish in the very short-term, even though LME prices have edged back up to the $1,800 per tonne area. This modest rebound may have only succeeded in creating a bear flag formation, and the recent double-bottom and falling exchange stocks may not be enough to prevent prices from breaking...