NGLOY - Freeport McMoRan slides with copper prices ahead of Fed meeting

2023-09-19 15:38:37 ET

• Freeport McMoRan ( NYSE: FCX ) -3.4% in Tuesday's trading alongside copper futures, as inventories increased and traders worried about the potential for high interest rates to hurt metals demand ahead of tomorrow's Federal Reserve policy meeting.
• Front-month Comex copper ( HG1:COM ) for September delivery settled -0.7% to $3.714/lb, its third straight daily decline, and benchmark three-month copper on the London Metal Exchange closed -0.8% at $8,294/metric ton.
• ETFs: ( NYSEARCA: CPER ), ( COPX ), ( JJC ), ( JJCTF )
• Other potentially relevant stock tickers include ( SCCO ), ( ERO ), ( BHP ), ( RIO ), ( OTCPK:GLCNF ), ( OTCPK:GLNCY ), ( OTCQX:AAUKF ), ( OTCQX:NGLOY )
• The Fed is not expected to announce a rate hike tomorrow, but financial markets are jittery about the prospect it could hold them at high levels to crush inflation.
• "We're expecting higher rates for longer because the strength of economic data is largely supportive and while inflation is cooling, we're really not out of the woods yet, especially with energy prices re-igniting," WisdomTree's Nitesh Shah said.
• Also, inventories in LME-regulated warehouses continue to build, highlighting rising supply amid weak demand; LME copper stocks have nearly tripled since mid-July to 149,600 metric tons, the highest since May 2022.
• A collapse in LME time-spreads is a warning that more metal may be on its way to exchange warehouses , according to Reuters columnist Andy Home.

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