Copper steadied near its four-month low as a worsening economic outlook keep sentiment depressed, ANZ commodity strategists note.

Copper hit by a selloff across risk assets

“Fear of a US recession added to concerns over soft industrial activity in China. Prices for Copper and the broader base metal market were hit hard earlier this week by a selloff across risk assets.”

“The unwinding of the JPY carry trade could have unexpected implications for Copper. The use of cheap funding in Japan appears to have fuelled a rally across risk assets over the past couple of years.”

“Copper hit a record high earlier this year; but this month’s sharp moves lower in the JPY combined with concerns of a hard economic landing in the US could lead to further downside for Copper in the short term.”