Ifo Recognizes Economic Spring
Clemes Fuest is, so to speak, the prince of the Ifo Institute in Munich. The President of the Economic Research Institute recently published the results of the latest Ifo Business Climate Index for Germany. The 99.6 points in March represented the first rise since August 2018, when the index reached its last peak at 104.1 points.
"A swallow doesn't make an economic summer," economists said immediately. But it could definitely be a spring. For it is not only in Germany that at least the Ifo index now speaks for an economic improvement. In other parts of the world - particularly important parts - economic hope is also emerging. Recently, US President Donald Trump had once again twittered that he definitely expected a trade agreement with China. And China is screwing fiscal and monetary policy screws anyway in order to support the domestic economy. If there were an all-clear on the trade front, brakes could be released in the world's two largest economies.
Global gross domestic product growth of three percent, or rather a little more than that, should therefore be achieved not only in 2019, but also beyond that. Since this growth is supported not least by a strong pillar in the form of infrastructure investments, industrial metals in particular should benefit from this trend. Copper, often referred to as the world's economic barometer, is in the forefront. The most recent correction in the price cannot hide the fact that the price of copper has indeed risen sharply in the past three months from less than USD 5,900 per tonne to as much as USD 6,500.
The copper price therefore also speaks for an improved global economy, which in turn supports the copper sector and the industrial metals sector as a whole. Low stock levels should also have a very positive effect on prices. Anyone wishing to participate in what may be a new positive trend, for example, can buy shares in mining companies in this sector such as Copper Mountain Mining and Panoro Minerals.
Copper producer Copper Mountain Mining has just made a positive announcement for its 75 percent owned Copper Mountain Mine in British Columbia: Copper equivalent production will increase by 27 percent, the life of the mine will be significantly extended and cash costs will fall.
Panoro Minerals is working at full steam on the Cotabambas copper-gold-silver project and the Antilla copper-molybdenum porphyry project in southern Peru, with very encouraging assays of the deposits to date.
Current corporate information and news releases from Copper Mountain Mining (https://www.resource-capital.ch/en/companies/copper-mountain-mining-corp.html) and Panoro Minerals (https://www.resource-capital.ch/en/companies/panoro-minerals-ltd.html).
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