The iPath Bloomberg Copper Subindex Total Return ETN (NYSEArca: JJC) is awakening from a lengthy slumber.
Thanks to a gain of almost 2% over the past month, the widely followed copper exchange traded note (ETN) is higher by more than 3% year-to-date and some data points indicate the red metal can continue grinding higher.
Industrial metals like copper, nickel, iron and steel have all rebounded in recent months as traders bet on improving global economic conditions would bolster demand for the base metals after prices hit multi-year lows.
Related: Miner ETFs Surge on Improving Metals Prices, Economic Outlook
Industrial metals producers have been trimmed the fat, cutting production and increasing efficiency to support prices. Additionally, any further delays in a Federal Reserve rate hike would help keep pressure on the dollar and support metal prices.
Other data points support the thesis that copper and JJC could potentially deliver more near-term upside. On Tuesday, copper for December rose thanks to encouraging Chinese economic data.
“Chinese manufacturing data comfortably beat expectations in October with the Caixin manufacturing PMI rising to its highest in more than two years at 51.2 (a reading above 50 indicates improving operating conditions),” reports Frik Els for Mining.com.
[related_stories]