Investors neutral on copper; emerging market currency weakness hits metals - Deutsche Bank

Investor positioning in copper has returned to neutral, signalling the end of a short-covering rally, analysts at Deutsche Bank said in a note on Monday September 2.

“We think better-than-expected data out of China may be the next catalyst, but our preference remains for metals where over-capacity is less of an issue, hence our preference for copper and zinc, over nickel and aluminium,” they said. Meanwhile, financial and economic weakness in emerging markets could have an impact on commodities, according to the analysts. “Weakness across a number of emerging market countries poses risks to the commodities outlook in our view,” they said. “[For example], the combined GDP of Brazil,...


Claire Hack

September 02, 2013

11:42 GMT