Watch out! Banks expand metal trading

Two major U.S. banks hire employees for metals trading. Deutsche Bank reconsiders return to metals business.

Price volatility has increased since the Russian invasion of Ukraine and the Fed’s interest rate hikes. Morgan Stanley and Bank of America have increased the number of employees in their metals departments. About ten years ago, Deutsche Bank had turned its back on this business, but now considerations are underway to re-enter the metals business. Just a few days ago, strategist Michael Wilson of Morgan Stanley announced that the Fed’s interest rate hikes will soon end. The point at which the Fed reduces its tightening plans is also known as the "Fed pivot." Currently, the Fed has indeed set another rate hike on the way, but a slower pace has been promised.

The behavior of the banks mentioned could be an indication that the outlook for metals will change positively in the foreseeable future, probably especially for industrial metals. The global industrial economy is likely to be important for the metal markets in the near future. In the case of copper, strong investment in the energy transition is expected to boost demand. In the short term, recession fears or a weakening of the industrial economy could still provide a headwind. If there are supply disruptions or unexpectedly strong demand, the price could rise very quickly. In any case, favorable entry prices could arise right now. Companies that have copper in projects include Kutcho Copper and Hannan Metals.

Hannan Metalshttps://www.youtube.com/watch?v=UYCCTD_R_oE – owns the San Martin copper-silver project in the eastern Andes in Peru and neighboring countries, in addition to the County Clare project in Ireland.

Kutcho Copperhttps://www.youtube.com/watch?v=Rm7Z4Xa4UCw – has a promising feasibility study for its Kutcho project (just over 17,000 hectares of land) in British Columbia.

Current corporate information and press releases from Hannan Metals (- https://www.resource-capital.ch/en/companies/hannan-metals-ltd/ -) and Kutcho Copper (- https://www.resource-capital.ch/en/companies/kutcho-copper-corp/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 – 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/

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