SHANGHAI, Nov. 13 (SMM) – Eyes will be on US PPI, retail sales and University of Michigan CCI for November. Markets expect those data to be mixed.
PPI figure for October is likely to peak at 0.2 this year, but still below the average level of above 1.5 last year. Moreover, core year-on-year PPI will slide to 0.5 from 0.8 if energy and food excluded. This mirrors that US inflation is still be curbed.
As a whole, US dollar should fluctuate at high. Base metals prices got no boost from falling dollar overnight and thus base metals are expected to be weak.
The OPEC warned on Thursday that crude oil oversupply already exceeded the level during the financial crisis. Additionally, EIA data showed that US crude oil inventories increased 4.22 million bbl during the week ending November 4, well above the expected 1.3 million bbl. Crude oil prices tumbled 3.41% to 41.54 overnight, a 2-month low. And crude prices are predicted to still be weak today.