Market Insight | CHINFMINING rises over 4%, leading the copper sector Powell's dovish remarks boost market sentiment Copper prices expected to enter a short-term period of strong fluctuations
CHINFMINING rose more than 4%, leading the copper sector. Overnight, Federal Reserve Chairman Powell sent a dovish signal, hinting at a possible rate cut in September, boosting market sentiment. Shanghai copper and international copper saw strong gains, becoming the focus of the market. Taking into account macroeconomic and industry factors, copper prices are expected to enter a period of slight strength and volatility in the short term. While copper prices have retraced most of their gains, with both macroeconomic and demand improvements, copper prices may gradually stabilize and rebound in the future
According to the Wise Finance APP, most copper stocks rose in the morning session. As of the time of publication, CHINFMINING (01258) rose by 4.14% to HKD 5.79; China Gold International (02099) rose by 2.58% to HKD 43.70; and MMG Limited (03939) rose by 1.53% to HKD 7.29.
On the news front, as reported by the Yangtze Nonferrous Metals Network, with Federal Reserve Chairman Powell releasing a dovish signal overnight, implying a possible rate cut in September, market sentiment has been significantly boosted, leading to a positive atmosphere in the morning session. The rise in the U.S. stock market and the fall in the U.S. dollar index have jointly fueled the market's risk appetite, with industrial commodities generally being stimulated. The strong gains in Shanghai copper and international copper have become the focus of the market.
Taking into account both macroeconomic and industrial factors, copper prices are expected to enter a period of relatively strong and fluctuating trend in the short term. On the macro level, Powell's dovish remarks have boosted market sentiment, reducing concerns about monetary policy tightening; on the industrial level, domestic refined copper production remains high, while low copper prices have also promoted a slow recovery in domestic end consumption. The further narrowing of spot discounts reflects the warming market demand.
Guangda Futures pointed out that the current copper price has retraced most of the gains since March, which is a refutation of previous expectations, but also a pricing based on the current macroeconomic bearishness and weak fundamentals. With the dual improvement in macroeconomics and demand, copper prices may gradually stabilize and rebound in the future, but the magnitude of the rebound should not be overly high