logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Copper Mining ETFs Up as China Promises Continued Growth

  +Follow July 23, 2013 4:42PM
Share:
Tickers Mentioned:

Copper his an all month high on statements from the Chinese Premier Li Keqiang indicated that growth would not be allowed to fall below 7 percent. Growth fell from 7.7 percent in the first quarter of 2013, to 7.5 percent in the second quarter, and analysts feared it would fall past 7 percent in the third.

China is currently the world’s largest consumer of copper, and accounts for 40 percent of all worldwide usage.

There has been speculation from analysts that China’s construction boom might be waning, or in fact might collapse completely. Famous short seller Jim Chanos has been one of the most vocal bears on China, saying the country’s financial outlook closely resembles the early stages of the boom and bust Japan suffered in the 80s prior to that country’s extended recession, referred to as the country’s ”Lost Decade.”  

Copper is building and expansion material, and worries in May that construction would slow stalled out prices. As T&K Futures & Co. President Mark Smith put it, “Any sign that demand in China might slip is going to hit copper.” And now, with reassurances that demand will continue to increase, copper has shot right back up.

 While there is no indication Keqiang can follow through on his promise to grow 7 percent and hit the government benchmark, China has already acted to sustain high growth. On July 22 the country removed government-mandated minimums on lending rates.

Copper was further bolstered on news China would increase railway construction.

Global X Copper Miners ETF ($COPX) is up 3.63 percent to hit 9.42 a share. First Trust ISE Global Copper Index ($CU) was up 3.5 percent to hit $21.91 a share.

The largest copper ETF, and candidate for the longest name of an ETF, iPath Exchange Traded Notes Dow Jones – AIG Copper Total Return Sub-Index ETV Series A (JJC) had a more modest gain, with a 1.08 percent uptick to hit $39.47 a share.

Copper is currently $3.18 a pound, down 34 cents on the year.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for COPX
iHangout
24 Oct 14 00:36:18
http://t.co/l4qmOlz0qf Stock_Tracker: Stock DD Board: G-X Copper Miners ETF (COPX) 8.35 $COPX New http://t.co/hDBkfL0X22
Investing Philosophy
20 Oct 14 11:38:50
RT @SAlphaTrending: Is Doctor Copper Telling Us Something? http://t.co/6IPRJrlHh3 $FCX $SCCO $JJC $COPX $DBB $CU $JJN $JJU $JJT $CPER $BOM …
Seeking Alpha
20 Oct 14 11:30:04
Is Doctor Copper Telling Us Something? http://t.co/6IPRJrlHh3 $FCX $SCCO $JJC $COPX $DBB $CU $JJN $JJU $JJT $CPER $BOM $RJZ $BOS $JJM
Traffic Generator
20 Oct 14 11:06:14
RT @SeekingAlpha: Is Doctor Copper Telling Us Something? http://t.co/pZb56SqZ05 $FCX $SCCO $JJC $COPX $DBB $CU $JJN $JJU $JJT $CPER $BOM $R…
Quantpost Basic Mats
20 Oct 14 10:58:23
$FCX News: "Is Doctor Copper Telling Us Something? $FCX $SCCO $JJC $COPX $DBB …" http://t.co/s6JTXiqjT2 Board view: https://t.co/dVLb5ZBQZe
Seeking Alpha
20 Oct 14 10:58:23
Is Doctor Copper Telling Us Something? http://t.co/pZb56SqZ05 $FCX $SCCO $JJC $COPX $DBB $CU $JJN $JJU $JJT $CPER $BOM $RJZ $BOS $JJM
				
				
  +Follow July 23, 2013 4:42PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.