Copper Bulls Retreat on Concern Stimulus Not Enough
Copper bulls retreated for a third consecutive week on mounting concern that weaker manufacturing from Europe to China will curb demand even as central banks pledge more stimulus to boost economies.
Thirteen analysts surveyed by Bloomberg said they expect prices to gain next week, 12 were bearish and one was neutral. That’s the lowest proportion of bulls since Aug. 17. They were the most bullish since October at the start of the month.
Copper reached a four-month high Sept. 19 after the Federal Reserve and European Central Bank said they would buy more debt and China, the biggest copper user, approved a $158 billion subways-to-roads construction plan. Data since then signaled contracting factory output in Europe and China and a weaker U.S. economy. International Monetary Fund Managing Director Christine Lagarde said Sept. 24 that global growth may be “a bit weaker” than the Washington-based group forecast in July.