Comex copper (Cu) rallied ~3% overnight sending related stocks sharply higher, including Freeport McMoRan (+5.7%), which we hold in the MM International Equities Portfolio. The news flow remains positive towards the industrial metal, but it was the sharp bounce in the AI Trade which likely improved sentiment in last night’s session.
- LME Cu inventories fell a further 6,900 tonnes to 255,400 tonnes, and cancelled warrants dropped 6,625 tonnes to 153,700 tonnes — both pointing to continued physical tightness.
- Anglo American (AAL LN) reported a 35% rise in first-half underlying earnings (EBITDA), driven by record Cu prices – BHP’s recent target.
The fact that Cu remains within striking distance of its all-time high despite the confidence-sapping plunge in the AI Trade and global growth concerns from the war & interest rates, the price action is very supportive for one of MM’s core views through 2026.
- We can see copper punching to fresh highs in the coming months, which should support the major ASX miners.
MM remains bullish toward copper around US$6.50
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