The overall perception was that the sell off was overdone and clearly an over reaction to macro fears clouding supportive underlying fundamentals Credit Agricole says.
Credit Agricole CIB has lifted most of its targets for base metals. Macroeconomic concerns surrounding Ireland and China were exacerbated as speculators and investors cut risk ahead of Thanksgiving and Christmas accounting for extraordinary volatility last week the bank says. The overall perception was that the sell off was overdone and clearly an over reaction to macro fears clouding supportive underlying fundamentals Credit Agricole says.
The fact that LME volumes spiked higher amid the sell off and subsequent recovery is indicative that good buying opportunities had emerged as a healthy correction removed some froth from the markets. For most of the base metals the bank upped its one three six and 12 month targets. Looking three months out the new targets are copper $9000 per metric ton aluminum $2700 nickel $24000 zinc $2400 lead $2600 and tin $27000.
