The global equity market is reacting to geopolitical tensions as the price of copper fell amid the death of Saudi Arabian journalist Jamal Khashoggi and the slowing demand of copper in China, according to a recent article by Reuters. Benchmark copper fell a total of 0.7%, now costing a total of $6,196 per ton.
Today, Turkey’s president stated the death of Khashoggi was “savagely planned” by Saudi Arabia, likely in response to Khashoggi’s comments on the Saudi government and exercise of free speech through the press. With such political unrest between the two countries, the price of copper fell. “Metals are reacting to what is happening in equity markets right now,” said Capital Economics senior commodities economist Caroline Bain in the Reuters piece. As tensions escalate, the market will continue to react.
China has also contributed to the decline in the metals market. The country experienced the slowest growth in the third quarter since the global financial crisis. Chinese officials did announce an expansion of targeted measures that will calm financing issues following this drop in the third quarter; however, investors are not convinced such a plan will actually work.
—Christie Citranglo, editorial associate