Comex Copper ($US/lb)

Copper, much like equities, reversed sharply higher overnight as optimism around the Middle East conflict improved sentiment toward global growth assets. The industrial metal remains heavily tied to economic activity and infrastructure demand, both of which will benefit significantly from the Strait of Hormuz reopening and energy markets stabilising. The influence on the ASX from “Dr Copper” is meaningful, with BHP Group (ASX: BHP) set to open up ~70c this morning, while in the US, Freeport-McMoRan Inc (NYSE: FCX), our copper position in the International Equities Portfolio closed +3.5%.

• We remain bullish towards copper over the coming years, initially targeting the psychological $US7.00/lb level, as global electrification and AI demands increase.