Weakness in Chinese Demand Leads to Divergence Among Metals

Copper prices could remain under short-term pressure following headlines indicating weakness in Chinese demand. Technical indicators support this view: the RSI at 46 is below the neutral zone, the MACD line is below the signal line, and the price is trading below both the 20-day and 50-day moving averages. The 0.2% decline over the past 24 hours suggests that weakness may persist. However, the downside is likely limited, as we are not in oversold territory and the market is broadly showing divergence signals.

The news headline indicates that weak demand in China is putting pressure on metals, leading to divergence. Aluminum closed at 3179.1, trading well below its 20-day (3403) and 50-day (3439) moving averages. The RSI is in weak territory at 40.5, while the MACD is negative and below its signal line. This technical outlook, combined with the negative impact of the news, suggests that the downtrend may continue in the short term.

Weak demand in China, particularly putting pressure on industrial metals, could trigger a sell-off wave in global commodity markets. This situation may reduce risk appetite for emerging markets and commodity-exporting countries. In the short term, BIST and TL-denominated assets could also be affected by this negative sentiment, but the impact may remain limited.

Weak demand in China, particularly weighing on industrial metals, could trigger a sell-off in global commodity markets. This may negatively impact emerging market currencies and stock exchanges. In commodity-importing economies like Turkey, while lower costs may be perceived positively in the short term, global growth concerns could reduce risk appetite and create downward pressure on BIST 100. Overall, a cautious stance is expected to prevail in markets.