Commodities: Copper Rebound Near Peak - CSFB

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According to Credit Suisse First Boston, the short squeeze finally came last Friday in which copper prices increased 7% while brent increased +1% on the day and +4% from Wednesday lows. While it may seem that this is a turnaround for the commodities sector, CFSB believes that the bounce is technical, and will likely fade.

In terms of underlying demand, the analyst notes that the apparent strength in Chinese exports is likely due to the increase in exports to Hong Kong (which was not present in HK import data). The analyst believes that the copper rebound is near its peak, with the next big move likely to be down.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

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