Key Macroeconomic Indicators for Base Metal Prices (2017-7-25)

SHANGHAI, Jul. 25 (SMM) –Market will eye UK July IFO industrial orders, US May FHFA home price index, and US July Conference Board’s consumer confidence index. 

With slowing industrial output in the UK, IFO industrial orders balance may drop MoM in July. This suggests UK economic growth momentum will wane, which will pressure pound.  

US housing starts rebounded in June, but this will make limited contribution to US economic growth since housing starts fell for three months in a row earlier. Annualized existing home sales fell in June. Strong labor market failed to boost recovery in housing market. So, FHFA home price index may fall further in May, which will drag economic recovery.  

US Conference Board’s preliminary consumer confidence index was 116 in July, down 2.9 MoM. University of Michigan’s consumer confidence index fell for two months in a row in July. These indicate pessimism over economic outlook. ECB president’s hawkish speech and issue of Trump over Russia dampened market confidence. So, US Conference Board’s consumer confidence index should continue falling in July.