MONEY MASTER

  China's largest stimulus package in years has buoyed the commodities market , particularly iron ore, copper, and zinc , as investors anticipate the potential for further gains when mainland markets reopen on Tuesday . The measures, aimed at reviving the property market , have sparked optimism among industry delegates attending LME Week in London, though some analysts caution it may be too soon for celebration. Despite previous limited efforts to stimulate the economy, Beijing’s latest flurry of announcements at the end of September signals a more aggressive approach . This, coupled with monetary stimulus , fiscal spending commitments, and property market stabilization , has driven a spectacular rally in Chinese stocks. Iron ore has surged over 25% since Sept 23, with industrial metals like copper and aluminum also performing well. Global mining giants , including BHP Group and Rio Tinto , have seen their share prices rise amid this optimism. However, analysts stress the nee...

Citigroup Inc. expects that uncertainty surrounding the upcoming US presidential election in November will limit gains for metals, dampening global risk appetite and potentially delaying government stimulus efforts in China. According to Citi analysts, including Tom Mulqueen, a more favorable environment for metals pricing may emerge in late Q4 2024 or early 2025, once the election uncertainty is resolved. Key Takeaways: Short-Term Constraints on Metals Prices : Citi forecasts that metals like copper and aluminum will remain subdued in the near term due to election-related uncertainties and concerns over global demand, particularly from China. This outlook comes amid a recent downturn in metals, with copper prices falling 1.7% week-on-week and aluminum returning to its level for the year. Factors Influencing Future Recovery : The bank maintains its three-month price targets of $9,500 per ton for copper and $2,500 per ton for aluminum, predicting that factors such as Federal Reserve rat...

  The assumptions driving this year’s global financial markets are being rapidly rethought. In bond and currency markets, investors are redeploying money amid doubts about the US economy, leading to speculation that the Federal Reserve may need to cut interest rates faster or deeper than planned. A weakening American consumer, evidenced by disappointing corporate earnings, is driving this shift. Simultaneously, stockholders are growing skeptical about the immediate payoff of technology companies' massive investments in artificial intelligence. As a result, investors have been dumping shares of big winners such as Nvidia Corp and Broadcom Inc. Copper and other industrial metals are reversing recent gains due to China’s slowdown and concerns over the US and tech sectors. “It does seem that an unwinding has begun of popular trades that brought valuations to stupid levels,” Louis-Vincent Gave, CEO of Gavekal Research, wrote in a note to clients Thursday. At Apollo Global Management, ch...