Chart of the Day - Tuesday, January 10th, 2023

Today’s Chart of the Day was shared by Brian G (@alphacharts). The chart shows Copper Futures & Emerging Markets ($EEM) over the past 25 years. These two have been exhibiting relative strength so far in the new year. Copper closed at a six-month high today while Emerging Markets closed at a four-month high. Brian points out they have a history of moving together. One reason that this correlation exists is that both assets are heavily influenced by China's economic health. China is the largest buyer of Copper and it's also the largest country within Emerging Markets, representing more than 30% of $EEM. The recent weakness in the US Dollar has also helped propel these two higher. Both are perceived as risk-on assets, so you could also interpret this as a sign of risk appetite returning to markets.