Copper to unwind? Watching China - Scotiabank

Analysts at Scotiabank explained that their commodity forecasts are unchanged for the moment owing to a set of countervailing risks.

Key Quotes:

"While a weak agreement amongst OPEC members to limit production and attempts by a new Trump administration to re-impose sanctions on Iran could be mildly supportive for oil prices, any bump in price expectations is moderated by the anticipation of weaker U.S. regulatory oversight and increased supply from American shale production.

The recent spike in copper prices, some of which preceded the U.S. election, is likely to be unwound, barring any significant supply disruptions or further stimulus efforts in China."