AWith the confinement, the theaters closed their doors, the musicians returned to their homes and the brass muted. However, in this concert of bad news, the announcement by the American pharmaceutical group Pfizer, Monday, November 9, of the development of a vaccine against SARS-CoV-2 “90% effective” sounded like a bugle blow. Even as Europe suffers a second surge of Covid-19, this information has sparked a wave of hope in the financial markets.
The copper did not escape the sudden euphoria. The red metal blazed in session in London on Monday, November 9, exceeding the mark of 7,000 dollars (5,923 euros) per tonne, a high for two years. Already, the declaration of the victory of Democrat Joe Biden at the end of a suspenseful American presidential election, each one holding his breath during the long counting of the votes, had given him some color.
Even if, for the time being, Donald Trump refuses to get off his pedestal, investors are enthusiastically debunking the statue of the President of the United States. Without imagining a sudden disappearance of taxes imposed on the metal trade, over the showdowns and other rantings of Mr. Trump, they expect relations with China to calm down. Conflicts are expected to subside with the world’s largest consumer of commodities.
Global economy thermometer
Copper, dubbed a thermometer of the global economy, has been laminated by the first wave of Covid-19. At the end of March, its price plunged and lost almost a quarter of its value. But, from April, when the engine of Chinese factories restarted, the coronavirus no longer circulating at low noise in the Middle Empire, copper made a comeback. The hot breath of speculation was even pushing it past its January price point. A position reinforced by the latest health bulletins of booming Chinese manufacturing activity. China has resumed shopping.
A boon for the Chilean mining company Codelco, the world’s leading producer of red metal. Over the first nine months of 2020, it posted a net profit of $ 1.1 billion, up 86% year on year. Despite the pandemic, the mines continued to spin, thwarting grim forecasts of shutdowns or extraction slowdowns caused by absenteeism or the illness of employees.
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