Wednesday, January 14, 2015

CNBC: Copper Collapses on Global Growth Concerns

We have already noted that falling oil prices may be an indicator that global growth is slowing. Today the World Bank confirmed that it was revising global growth projections downward. Then CNBC runs this article which says collapsing copper prices also indicate slowing global growth.

We need to watch all this and any further signs that slowing growth or deflation is overwhelming the Central Bank efforts to stave it off. Things can change pretty quickly as we have seen with the US stock market lately. Below some quotes from this CNBC article.

"Copper has plunged to a 5 1/2-year low, in the latest example of slowing global growth hammering industrial commodities."

. . . . . 

"Still, no matter the cause for the short-term action, the long-term case against copper is clear.
"China is the biggest user of it, the biggest consumer. Manufacturing has slowed in China, according to the latest stats.… So the demand for copper has been way down for the world's biggest user," Anthony Grisanti of GRZ Energy said Wednesday on CNBC.
The problem stretches beyond China, however. The World Bank cut its global growth forecast to 3 percent from 3.4 percent in a Tuesday report, which is bad news for copper demand. Copper is often thought of as a global growth barometer, as it is used in everything from homes to cars to electronics to factories.
For that reason, Scott Nations of NationsShares says that copper's plunge is actually more concerning than oil's."

added note: here is another similar article from CNBC on this

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