Key Macroeconomic Indicators for Base Metal Prices (2016-10-25)

SHANGHAI, Oct. 25 (SMM) –Market will eye US August home prices, October IBD consumer confidence index and October Richmond Fed Manufacturing Index today. 

US housing starts and building permits fell sharply in August, and new home sales and existing home sales fell unexpectedly. But, single home permits increased in August, and inventories of existing house are limited. Home prices rose faster than wages. Hence, US housing market is still positive and home price index is expected to extend gains in August.  

Negative US September employment data and uncertainty over the result of US presidential election might dampen consumer confidence index. The University of Michigan’s preliminary consumer confidence index in October hit the lowest since September 2015, due mainly to uncertainty over the result of US presidential election and soft wage growth. As such, IBD consumer confidence index might weaken in October.    

ECB president’s speech earlier left the door open for stimulus measures in December and his speech today will be closely watched.  

See SMM price forecast, please click: Base Metals to Rise, SMM Says