Monday's Final Takeaways: Copper Climbs, China Slides & Crypto Declines

Copper Industry - Copper prices have surged over 35% year-to-date, reaching new highs, with expectations from City Group that prices will continue to rise due to increased demand from AI hyperscalers and the energy sector [1][2] - City Group predicts copper prices could reach $13,000 per ton by early 2026 and potentially $15,000 by the second quarter of next year, with spot prices recently hitting $11,816 per ton on the London Metals Exchange [2] Cryptocurrency Market - The cryptocurrency market is experiencing modest inflows, with total inflows of $864 million last week, marking the third consecutive week of inflows [3] - Bitcoin led the inflows with $522 million last week, bringing its year-to-date inflows to $27.7 billion, while Ethereum recorded inflows of $338 million, increasing its year-to-date inflows to $13.3 billion, a 148% increase compared to last year [3] Chinese Economy - Chinese stocks have been under pressure, with significant declines in major companies following disappointing economic data, including the worst retail sales month outside of the pandemic and a 15-month low in industrial production [4][5] - Despite a trade surplus exceeding $1 trillion, the internal economic indicators appear weak, with concerns in the real estate sector exacerbated by property developer China Vanka's efforts to avoid default [5][6] Employment Data - Upcoming employment data is expected to show a modest addition of 40,000 jobs in October, with the unemployment rate holding steady at 4.4%, a significant drop from the 119,000 jobs added in September [9][10] - The breakdown of job gains by industry and wage growth will be critical to assess future consumer spending pressures [10] Earnings Reports - Earnings reports are anticipated, with expectations for adjusted EPS of $223 on revenue of approximately $9.1 billion for LAR, amid concerns over lower gross margins due to price-cutting incentives [12][13] - Higher commodity prices, particularly copper, may impact construction costs and potentially lead to margin pressures for home builders [14][15]