Stock markets will struggle until commodities start to rebound, in particular copper - IG

IG market analyst Angus Nicholson said recently that until commodities begin to recover — in particular, copper — global stock markets will struggle for much upside.

"The four great bull markets of the 20th century were preceded by a turnaround in the copper price. In 1921, 1932, 1949 and 1982 after a dramatic selloff in equities, it was the steady increase in copper prices that portended the following multiyear bull markets," he noted.

Nicholson said that uncertainty over what the Fed policy will be after a potential December hike, and worries over a China slowdown are other factors that could create a bumpy first quarter for global stocks.

Here is how copper was affected throughout the recent months:

High-grade copper for December has lost 26% year to date, compared with a 21% fall for crude oil.

Meanwhile, on Friday December Comex copper was seen at $2.093 a pound, up 0.81%.

December Comex gold last traded at $1,083.40 an ounce, while December Comex silver was at $14.265 a troy ounce.