Economic 'soft landing' combined with the wave of AI demand! Is there hope for the copper stocks to open up room for growth?
With the unexpected 50 basis point rate cut by the Federal Reserve, there has been a shift in the previously intense debate about whether the US economy will experience a "hard landing". The copper sector rose nearly 2% overall yesterday, showing strong performance.
Commodity Roundup: As Rate Cut Hopes Steer Gold to Record Highs, Silver Shows Potential
Will copper prices soar in the long term? BHP Group Ltd: The AI wave will intensify the copper shortage.
①Although the global copper market is currently in a stage of weak demand, mining giant BHP Group Ltd warns that future copper demand will soar to a large extent due to the wave of artificial intelligence; ②BHP Group Ltd warns that copper is a key metal in the transition to clean energy, and the development of artificial intelligence will exacerbate the copper shortage problem.
Europe Natural Resources Fund: Global stock markets are beginning to experience sharp declines. Buy gold in segments after each sharp decline.
It is possible that the US stock market will peak this month (if Trump is elected, there may be a honeymoon period of about six months for the US stock market), and gold may be used as a cash machine, bringing down the price of gold when the stock market falls.
Is lowering interest rates by 25 basis points the main trend? What kind of assets should you bet on?
Ahead of the upcoming September FOMC meeting, the market is highly focused on the last non-farm payroll data, as this data will have a decisive impact on future recession risks and the extent of the Fed's interest rate cuts. The market is debating whether the Fed will cut rates by 25 basis points or 50 basis points, especially after Powell reiterated the importance of the labor market in policy decisions at the Jackson Hole meeting, attracting attention to the possibility of rate cuts. However, the market's reaction has not formed a unified trend, and the performance of various assets has also varied. As of now, the probability of a 25 basis point rate cut reflected by CME interest rate futures has risen to 71%, while the expectation of a 50 basis point rate cut has fallen to 29%. At the same time, the 10-year US Treasury yield remains at 3.7%, gold has fallen after significant volatility, US stocks have fallen again, and the US dollar index has seen a slight increase. This indicates a significant divergence
Soochow: Both the large and small non-farm payrolls in the USA have recorded data below expectations, with a weak labor market driving a decline in industrial metals.
This Friday, Federal Reserve Director Waller reiterated the necessity of "preemptive rate cuts" in his last public speech before the September meeting. Soochow Securities believes that the Federal Reserve is currently reducing its tolerance for labor market weakness and sending a signal of continuity for future interest rate cuts.