Copper-The negative impact of Trump's tariffs on the commoditesCopper is below the EMA200 and EMA50 in the 4H timeframe and is moving in its descending channel. Copper moved up from the demand zone of the last analysis. If the upward trend continues, it is possible to sell copper in the specified supply zones in the short term.
Ken Griffin, CEO of Citadel and a prominent figure in the investment world, has voiced his concerns over Donald Trump’s potential tariff policies. He stated, “I am deeply worried about the president’s inclination to use tariffs as a tool in trade policy.” Earlier this year, Griffin described Trump’s tariff policies as “regrettable” but noted that overall, Trump’s administration has been good for the markets.
Meanwhile, Japanese companies operating in China have grown more pessimistic about the world’s second-largest economy. According to a report by the Japanese Chamber of Commerce and Industry in China, nearly two-thirds of Japanese companies believe China’s economic conditions have worsened compared to the previous year. This figure has risen from 60% in the previous survey to 64%. Additionally, almost half of these companies have either scaled back or suspended their investments. Furthermore, security concerns and incidents like the recent death of a Japanese student in Shenzhen have cast a shadow over diplomatic efforts to improve relations between the two nations.
In the United States, Donald Trump, the president-elect, is assembling a new cabinet featuring individuals known for their hardline stance on China. Trump has nominated John Ratcliffe, former Director of National Intelligence, as CIA Director, Pete Hegseth, a military veteran and Fox News commentator, as Secretary of Defense, and Michael Waltz, a Florida congressman, as National Security Advisor. Elise Stefanik, a congresswoman from New York, has been chosen as the U.S. Ambassador to the United Nations. Additionally, Senator Marco Rubio of Florida is expected to be named Secretary of State. This team is known for its anti-China positions and its belief in a power struggle between Washington and Beijing.
According to a new Reuters poll, the Federal Reserve is likely to cut interest rates to a range of 3.5%–3.75% by the end of 2025. In October, projections placed this range at 3.0%–3.25%. Furthermore, a majority of economists anticipate that in December 2024, the Fed will lower interest rates by 25 basis points to a range of 4.25%–4.5%.
Another survey indicates that 44 out of 51 economists believe Trump’s proposed tariffs will have significant negative impacts on the U.S. economy. Additionally, 57 out of 67 respondents predict that inflation is likely to resurface in the U.S. next year.
