Copper Hits Record High Amid Tight Supply, Oil Prices Remain Elevated
Copper has hit a record high for the second straight session at $14,624.5 per ton on the London Metal Exchange, driven by tight supply and expectations of US tariffs. This marks a 17% gain in copper prices this year, supported by a mismatch between constrained mine supply and growing demand from data centers, renewable energy infrastructure, and power grids.
Oil prices have remained elevated, with Brent briefly topping $98 a barrel on Monday, a six-week high. The uncertainty surrounding regional shipping and supply flows has contributed to the price stability, with Iran's announcement of an agreement with Oman for a temporary safe shipping route sparking questions about how the US may respond.
The yen has strengthened significantly, entering its fifth day of gains, while Asian equities traded mixed on Tuesday as semiconductor stocks rallied but were offset by pressure from rising oil prices and a stronger yen. The Japanese economy grew 0.4% in Q2 2026, driven by government spending and smaller-than-expected business investment.
The global economy remains vigilant ahead of key events, including US producer price data due Thursday and August consumer prices (CPI) on Friday, as well as the Federal Reserve meeting on September 15-16. The market is watching for signs of inflationary pressures and potential tightening monetary policy.