Copper is often seen as a bellwether for global markets - Dr. Copper right?
GS cuts its price forecast
- 3 month horizon - now at $6500/ton from their prior at $7300
(Is GS just catching up with market movement? Its around its lowest in a year. Anyway, back to GS report ... )
GS citing:
- China credit tightening
- Rising trade tensions
The two are the 'main drivers' for metals market at present says the bank
Further into the second half and 2019- expect China policy support will lift prices :
- China will be wary of balancing its goal of financial deleveraging with its growth target, says GS, this will not be an easy task
- GS says not expecting a full blown trade war
- But significant uncertainties
- No resolution in near term sight
GS comments via wires
