For the handful of hedge-fund traders who built long careers riding the volatility of commodities markets, two things are obvious about copper: it’s cheap and terrifying.
There’s a good argument that the metal – which is in the midst of a record-breaking 13-day sell off – is due for a bounce when China gets coronavirus under control. But the chance that the outbreak could still get much worse is keeping some traders on the sidelines.
“Everyone is just so scared of buying,” said George Daniel, a portfolio manager at Red Kite, said by phone from London. “There’s still no one willing to take a stand here.”
“At the very least, you’re going to want to wait until you see the market finish higher,” he said.