Copper prices continue their climb higher this morning to an eight week high. Copper, sometimes referred to as Dr. Copper, is considered a benchmark by many as a barometer on the health of the global economy.
This barometer benchmark is especially watched when looking at China (FXI, quote) as China is the world’s largest consumer of copper (JJC, quote) with a consumption rate of nearly 40% of the world’s demand.
With China consuming 40% of the copper demand, it’s no wonder that speculation has sent copper higher again this morning after China’s economic data releases over the weekend.
As Tim pointed out on Friday’s Emerging Money Audio Call, traders would be watching China numbers released over the weekend.
Data indicated that China’s industrial companies saw a 10.7% increase in profits, much faster than the January and February increase of 9.4%.
On a first quarter by first quarter basis, profits grew by 10.1%.
The upside surprise now has market participants speculating heavily on China’s Manufacturing Purchasing Managers Index scheduled to be release in 3 days on May 1.
Analyst expectations are for an increase to 50.5 over March’s 50.3.
Be sure to login to your account later this morning after the opening bell to see a plan to trade Dr. Copper from here…