MARKET COMMENTARY
Copper prices are widely used as a gauge of economic health, which has been hurt by the prolonged trade war between the United States and China has hurt global growth outlook and demand for the red metal, as well as volatilities caused by the lengthy Brexit negotiations.
In early October, the U.S. dollar index was at its highest (99.667) since May 2017, making metals priced in the U.S. dollar including those on the LME more expensive for users of other currencies. The LME copper fell to $5588, its lowest since May 2017, on first day of October due to a stronger dollar, but trading was thin as traders in top consumer China went on a long holiday. The United States on 2nd October said it would slap 10% tariffs on European-made Airbus planes and 25% duties on French wine, Scotch and Irish whiskies, and cheese from across the continent as punishment for illegal EU aircraft subsidies. The dollar start to eased on Thursday, sliding to fresh one-week lows against the euro and yen as investor anxiety deepened over fresh signs of slowing U.S. economic growth and a broadening of global trade friction. The discount for cash copper versus three-month metal on the LME rose to $35 first week of October, the most since August last year, pointing to plentiful availability.
London copper advanced after 9th October following U.S. President Donald Trump described trade talks with China as "very good", raising hopes of breakthrough in the tariff war between the world's two biggest economies. But gains were limited as the markets remained cautious about prospects of a deal between the two biggest global economies until the second half of October. London copper rose on $5941.5 (the highest since 16th Sept.) 29th October because of worries of a supply disruption in Chile, the world's biggest producer, lent some support. But LME copper gave back soma gains because of weak China data and anxious about China-US trade deal.London copper has been closed October with gains %1.65.