Morning Report Monday 10 March 2014
On Friday night, the copper price fell by 3.6%, the most in over 2 years, as investors’ concerns increase about the slowing growth in China. On the weekend, China announced inflation figures which added to fears that their economy is losing steam; this is obviously inevitable at some point in time. Also, on Friday night, the iron ore price fell over 2% and overseas mining stocks were hit hard e.g. Vale, the world’s largest iron ore stock fell 5%.
I am bearish copper, iron ore & the Chinese equities market on a longer term basis and hence cautious on respective stocks (charts 1-3).
China will undoubtedly fire some large stimulus bullets along the way, creating excellent trading opportunities but correct buying levels are vital.
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