Copper prices rose to $6.14 per pound, credit spreads narrowed from recent peaks to 287 basis points, VIX closed around 19.5, and the yield curve slope was about 51 basis points—multiple signals simultaneously point to a repricing of the soft-landing trade.
Freeport and copper mining ETFs rose by 4.1% and 4.2%, respectively, as funds using industrial metals as a proxy for economic activity are entering the market; the 6% gain in the South Korea ETF corresponds to the South Korean stock market hitting a record high driven by AI exports; JP Morgan remained almost unchanged, as the banking sector typically stays on the sidelines when the curve steepens but economic expectations remain uncertain.
If credit spreads continue to narrow and copper prices stabilize above $6, the integrity of the soft-landing narrative will be more self-consistent.
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