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August 16th - Despite a significant rebound in the stock market from the panic triggered by the plunge in chip and AI-related stocks, data shows that short selling is still on the rise. According to data released by the Korea Exchange on Sunday, as of Tuesday, the outstanding short position in the South Korean stock market was approximately 19 trillion won (about $13.4 billion), an increase of 2.27 trillion won, or 14%, from 16.73 trillion won at the end of last month. At the end of February this year, the short position was 15 trillion won, briefly fell to 12 trillion won in early March, and then rose again to 23 trillion won in early June. So far this month, the benchmark KOSPI index has risen by 6%, while the tech-heavy KOSDAQ index has surged by 20%. Last month, the South Korean stock market experienced a sharp drop due to market concerns about the profitability of AI-related investments (which could weaken chip demand). However, investors remain concerned about the rapid short-term gains and are uncertain whether the chip industry has peaked.According to Al Arabiya satellite television: Libyan sources say the Al-Hashah power station in Zawara was attacked by drones.On August 16th, local time, police in Virginia, USA, arrested a 19-year-old man suspected of involvement in a shooting that day that injured five people. No one was killed in the shooting, but one victim is in critical condition. Chesterfield County Sheriffs Office announced the arrest of Camron Harris, from Henrico, Virginia. Authorities stated that he is not a student at the school. Police said they have issued eight felony warrants for the man, including charges of intentional assault and use of a firearm during a felony. Although the shooting occurred on school grounds, only one of the five injured was a student at the school. Authorities stated that the other four victims are between 17 and 23 years old.Conflict Updates: 1. The UAE reports an attack on a ship in the Strait of Hormuz. 2. Lebanon condemns Israeli attacks on southern Lebanon as a violation of the framework agreement. 3. Israeli airstrikes in Lebanon kill 11. 4. Lebanon condemns Israeli attacks on southern Lebanon as a violation of the framework agreement. 5. The UAE Foreign Ministry condemns Irans attack on an ADNOC vessel. 6. Israeli airstrikes on the southern Lebanese town of Deir Zahrani kill 4 and injure 17. 7. Irans Communications Minister: Over 500 telecommunications sites have been attacked during the war, and some facilities were hit again after being repaired and service restored. 8. According to Saudi Arabias Al Arabiya TV: The Yemeni military vowed a strong response to the Houthi attack on the port city of Mocha. 9. Israeli Prime Minister Netanyahu: Hezbollah violated the ceasefire agreement in Lebanon and attacked our fighters within the "yellow line." In response, the Israel Defense Forces attacked the Hezbollah command post that issued the order for the attack. Strait of Hormuz: 1. A maritime accident occurred in the Strait of Hormuz; a bulk carrier was hit by an unidentified flying object. 2. Iran and Oman have reached an agreement on shipping routes through the Strait of Hormuz. 3. Iranian Foreign Minister: The United States must meet (Irans) conditions before shipping through the Strait of Hormuz can resume. 4. Iranian Foreign Minister: Qatar and Pakistan are exchanging information with us, but this is not a negotiation. The talks between Iran and Oman are being conducted independently, focusing on sea routes through the Strait of Hormuz. Other Matters: 1. US media: Trumps demands are putting pressure on the US Navy. 2. Iranian Foreign Minister: Iran has not yet decided whether to resume negotiations with the United States. 3. Bandar Abbas International Airport resumes flight operations today. 4. Iran and Tajikistan sign a long-term oil cooperation agreement. 5. Head of Mocha Port, Yemen: The port of Mocha in Yemen ceased operations after the Houthi attack. 6. US media: The root cause of the US aircraft carrier predicament lies in the attack on the logistics hub of the Bahrain base in the early stages of the war. 7. According to Iranian media Fars News: Iranian military officials say three Iranian Air Force personnel went missing after an operation targeting US bases in March and are currently being held in Qatar. 8. The head of Irans Energy Optimization Organization: As part of three ongoing proposals to manage Irans gasoline supply, Iran is considering a proposal to allocate 30 liters of gasoline per person per month, and that this quota be transferable and tradable.According to NIOs official Weibo account, as of today, NIO has built 9,210 charging and battery swapping stations nationwide, including 4,020 battery swapping stations, 5,190 charging stations, and 29,915 charging piles, providing more than 120 million battery swaps to date.

Copper pricing remains firmer on anticipation for stimulus and weaker DXY

Daniel Rogers

Sep 06, 2022 15:16

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Reuters reported that the copper contract for three months on the London Metal Exchange (LME) increased 0.3% to $7,678 per tonne by 02:59 GMT, while the most-traded copper contract for October on the Shanghai Futures Exchange (SFE) rose 1.3% to 60,850 yuan ($8,773.45) per tonne.

 

In doing so, the red metal applauds the market's improved sentiment and hopes for additional support, particularly from China. The lower performance of the US Dollar Index (DXY) after it reached a 20-year high the day before is also encouraging for metal purchasers.

 

US 10-year Treasury yields jump 2.5 basis points (bps) to 3.21%, reflecting the sentiment, while S&P 500 Futures extend the week-start recovery to 3,943, up 0.50% intraday as of press time. In addition, market consolidation permitted the DXY to fall from the 20-year high to 109.37, prior to its current rebound to 109.62.

 

During a period of full markets, optimists appeared to have been supported by rumors of more aid packages to spur economic recovery. Nonetheless, the incoming British prime minister, Liz Truss, has a £130 billion energy plan in the works, while the People's Bank of China (PBOC) reduces the Reserve Requirement Ratio (RRR). In addition, policymakers from Germany and the Eurozone are making a concerted effort to shield energy businesses and winter stocks from the effects of the recession.

 

China's tightening supply and Peru's falling output of the metal further support the price. "The premium of LME cash copper over the three-month contract surged to $77.50 per tonne on Monday, the biggest level since December 2021," reported Reuters, indicating a diminishing supply of immediately available material in LME warehouses. Copper production in Peru, the world's second-biggest copper producer, decreased 6.6% year-over-year to 195,234 tonnes in July, as two of the nation's top mines underperformed.