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Copper - A leading indicator on the economy?

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This chart suggests price is breaking down, I wonder what that means for the world's economies ? 

Capture copper.PNG

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11 hours ago, elle said:

This chart suggests price is breaking down, I wonder what that means for the world's economies ? 

Good piece on copper here from CME focusing on it's strong links with the Chinese economy and the very low current implied volatility.

"Copper closely tracks growth in China, yet copper options prices tend to be closely related to U.S. monetary policy. How will Fed rate cuts impact the metal? "



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Certainly looks like it could be coming down to 55 flat. If that does happen then we could be in seriously bearish territory and Dr Copper should start getting some serious attention.

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Guest phil

Not directly correlated but related to the general meta of this thread.

US stock volatility has eased considerably in recent days, leading some derivatives traders to bank on a stable period. Think some form of low vol option trade going on. Whilst some major indexes are in the rebound zone, the Cboe Volatility Index (VIX) has fallen by 20.8% to 15.80 in the past week. Things are mixed though as US equities have seen some positive movement, Asian markets were down on 21 August following recession concerns; Hong Kong’s Hang Seng Index dipped by 0.14%, while Japan’s Nikkei was down -0.28%.

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Guest phil

Copper is flat in this period. 

On 21/08/2019 at 15:45, dmedin said:

Ten point spread?

Looks to be 10 points on a 5720 price, compared to FTSE 1 point on a 7200 price. Not great when you look as it side by side. Assume the copper futures book is no where near as liquid as a leading world index though. 

Can't see bid offer of HG1 or the LME quote either but someone at IG can please? https://www.bloomberg.com/markets/commodities/futures/metals 

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