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A Chilly Outlook for China Causes Copper Prices to Shiver

A Chilly Outlook for China Causes Copper Prices to Shiver

By Jim Williams

Copper investors hope the red metal warms up as the week progresses. Copper lost a couple points Monday thanks to a data dump out of China pointing to a “moderating growth over the next few quarters,”according to a Reuters report.
The economy in China cooled in October as industrial output, fixed asset investment and retail sales missed expectations as the Chinese government extended a crackdown on debt risks and factory pollution.

China’s industrial value-added output expanded 6.2 per cent year-on-year last month, slowing from 6.6 per cent growth the previous month.

Copper Expected to Shift Into High Gear
Following up on last week’s article Copper Prices Drive Higher with a Bloomberg.com article about the impact electric cars will have on the copper industry. Click here to find out what the ‘electric car revolution’ is expected to do to demand for the red metal.

Mining News
Real-life drama at Freeport McMoRan as a shooting causes a shutdown at an Indonesian mine. According to Reuters, Freeport closed the main access road to its giant copper mine in the eastern province of Papua for the second time in three days after another shooting incident. More details here.

Meanwhile, India’s only copper mine announces it plans to invest around $700 million to triple its copper production. You can read the entire article here.

Market Impact This Week
Here is a breakdown of events this week expected to make a mark on the markets as listed by Investing.com. A busy week, starting with a lot of activity today.

Tuesday, November 14

  • Australia is to release data on business confidence.
  • China is to publish reports on industrial production, fixed asset investment and retail sales.
  • Germany is to release preliminary data on third quarter economic growth. Meanwhile the ZEW Institute is to produce data on German economic sentiment.
  • Federal Reserve Chair Janet Yellen, European Central Bank President Mario Draghi and Bank of England Governor Mark Carney are among central bankers due to speak at an event hosted by the ECB in Frankfurt.
  • The UK is to produce inflation data.
  • The euro zone is to release preliminary data on third quarter growth.
  • The U.S. is to publish data on producer prices.

Wednesday, November 15

  • Japan is to release preliminary data on third quarter growth.
  • Chicago Fed President Charles Evans is to speak in London.
  • The UK is to publish its latest employment report.
  • The U.S. is to release data on inflation and retail sales along with a report on manufacturing activity in the New York region.

Thursday, November 16

  • Australia is to release its latest jobs report.
  • The UK is to report on retail sales.
  • The euro zone is to release revised inflation data.
  • Canada is to report on manufacturing sales and foreign securities purchases.
  • The U.S. is to release reports on jobless claims, industrial production, import prices and manufacturing activity in the Philadelphia region.
  • BoE Governor Mark Carney is to speak at an event in Liverpool.

Friday, November 17

  • ECB President Mario Draghi is to speak in Frankfurt.
  • Canada is to report on inflation.
  • The U.S. is to wrap up the week with data on building permits and housing starts.
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