Copper and China have been bedmates for many years now. The correlation between copper prices and Chinese financial assets has been quite close for the past 5 years, reflecting the financialization of the copper market in China (often used as collateral for financing deals).
The recent divergence over the past week is interesting then:
China has rallied strongly while copper has sold off. Copper’s weakness is especially notable given that the dollar has actually been moving lower in the past week (the same could be said for the decline in precious metals as well).
In the past, either Chinese equities have caught back down by moving lower, or copper should see a turn higher soon. These two assets have not remained far apart for long. For now though, one’s offering a head fake to traders the world over.