April 21 Copper Market Brief Review

Today's Shanghai copper opened low and went low, the main month 2006 contract opened at 41860 yuan / ton, the highest intraday 42160 yuan / ton, the lowest 41400 yuan / ton, settled 41710 yuan / ton, closed 41440 yuan / ton, down 960 yuan, down 2.
26%.

On the macro front, the May contract of WTI crude oil futures, which is scheduled to begin physical delivery on April 21, suffered the wildest sell-off in history, and the sharp drop in demand caused by the epidemic led to a serious imbalance between supply and demand, and the large accumulation of US crude oil inventories, resulting in a tight remaining available storage capacity, which was one of the reasons for the sharp weakening of
the front-month contract.
U.
S.
stocks closed lower
last night as oil prices tumbled.
The United States is about to reach a second small business rescue package, injecting $300 billion into the Paycheck Protection Program; Japan expanded its stimulus package from 108 trillion yen to 117 trillion yen
.
Yesterday, the 1-year LPR was cut by 10 basis points and the 5-year period above by 20 basis points
.
Overall, as crude oil prices plummeted, market panic increased, and copper prices or volatility was weak
.

Due to the widespread spread of the new crown epidemic, the market is relatively pessimistic about whether the world's major economies can recover in the second and third quarters, and it is estimated that the global stock market and international commodities will have a round of overly optimistic sentiment cooling, of course, considering that China is accelerating the resumption of work and production, Europe and the United States are observing the new inflection point of the epidemic, and China and the United States and other countries are preparing to introduce a new round of economic stimulus policies, it is expected that market sentiment will still swing rapidly in pessimistic economic reality and optimistic stimulus expectations
.
In the face of the current complex and changeable environment, the recent rebound of nonferrous commodities and other commodities is only regarded as a rebound, and it is difficult to identify it as a trend reversal signal
for the time being.