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With Chinese manufacturing activity expanding at its fastest rate in a year and a political transition on the way, commodity stocks may be due a lift. That’s our topic on today’s Trading the Globe.
Peruvian stocks have outperformed everything else in Latin America so far this year. However, traders who chalk up the rally to the country’s traditional gold and copper wealth would be wrong.
All asset classes have been moving together in unusually high correlations since August, but traders can still beat the market if they pick the right names and avoid the laggards. We talk about why this is especially true in emerging markets today on Trading the Globe.
The London Metal Exchange, the world’s largest metals exchange, reports that copper stockpiles from the U.S. to China are already at 2-1/2-year lows and poised to decline for the fifth month in a row. The news has awakened the slumbering copper bulls to move speculation, sentiment and pricing to the highest level in two months.
President Humala has declared a state of emergency in the northern part of Peru as talks with protesters have broken down. The army and police will have additional powers for 60 days, including the right to arrest without a warrant in four states within the Cajamarca region.
Tonight’s inflation numbers out of Beijing could confirm that China is finally ready to loosen its monetary policy. We talk about it today on Trading the Globe.
Global miners that call Peru home or at least earn a significant chunk of their earnings there have taken a huge hit after the election.
Left-wing candidate Ollanta Humala won the Peruvian presidential election after all. Watch to see the Lima exchange lose ground for a bit.
The schizoid trajectory of the copper market looks set to take another leap upward as Chinese manufacturers start hoarding the key metal once again.
