Key Macroeconomic Indicators for Base Metal Prices (2015-11-26)

SHANGHAI, Nov. 26 (SMM) – US current economic situation is enough to support rate hike next month. US housing market, manufacturing industry and income situation continue to point upwards. However, US consumption expenditure did not grow in the same pace and final University of Michigan’s CCI for November missed forecast. Besides, growth in US housing market will be dragged down by a surge in house inventory. As we can see, US economy growth still faces lots of pressure besides low inflation.

Economy in euro zone improved slightly currently but the Europe Central Bank (ECB) is still expected to continue with more easing monetary policy in December. The ECB reportedly will expand its bond buying program overnight. In response, euro tumbled and US dollar refreshed a new high.

The rally in crude oil prices is curbed by firm dollar and mounting inventories. Nonetheless, crude prices will seek support from the situation in the Middle East and US low inflation. Thus, eyes will be paid to the meeting held by the OPEC on December 4. In short term, crude price rally will be contained by pile of inventories.