Why did copper prices fall?
1, global economic slowdown: copper is an important raw material for industrial production, so the global economic slowdown may lead to a decline in demand and copper prices will also be affected;
2. Oversupply: Oversupply of copper will lead to oversupply and push down copper prices;
3. Trade wars and geopolitical risks: global trade tensions may lead to market uncertainty, which in turn will affect copper prices. In addition, some geopolitical events (such as natural disasters, coups, terrorism, etc. ) may also lead to a decline in copper prices;
4. Short-term speculation: The activities of short-term speculators may lead to fluctuations in copper prices, especially during the period of unstable market sentiment.
5. Technical factors: Technical factors refer to charts and technical analysis related to copper trading and price. These factors may lead to short-term fluctuations in copper prices, but they are usually not the main factors of long-term trends.
What is the reason for the rise in copper prices?
1. Relationship between supply and demand: The global epidemic has affected the economy, and governments have taken fiscal stimulus measures to increase the demand for commodities such as copper. At the same time, the supply of copper is affected by the epidemic situation and recovery, such as the slow production and transportation of copper mines;
2. Speculation: The user's demand for copper has greatly increased, which has pushed up the price of copper. Some stock and futures traders speculate on the fluctuation of copper market, which indirectly affects the market price;
3. US dollar exchange rate: copper is one of the most widely used commodities in international trade, and copper prices are usually related to the depreciation of the US dollar;
4. Policy adjustment: Some governments promised to strengthen infrastructure spending and increase the demand for building materials such as copper, thus pushing up copper prices.
What is the impact of rising copper prices on the stock market?
1. Industrial company stock: Copper is an important raw material for industrial production, and industrial manufacturing companies are usually affected by the change of copper price. When the copper price rises, the cost of these companies may increase, but the demand may also increase, which will prompt these companies to increase production and sales, thus pushing their stocks up:
2. Financial industry stocks: Some financial institutions may hold copper portfolios. When the copper price rises, the value of their portfolio may increase, which may push their stock up;
3. Stocks of other companies: Rising copper prices may mean economic growth, because copper is an important part of key areas such as construction and infrastructure construction. This may be beneficial to the growth and expansion of other companies and increase the share price.
This article mainly writes about the knowledge points of why copper prices will fall, and the content is for reference only.