Key Macroeconomic Indicators for Base Metal Prices (2017-5-8)

SHANGHAI, May 8 (SMM) – Attention should be on China’s April trade balance, US’s April LMCI employment condition and eurozone’s May Sentix investor confidence index on Monday. Last Friday, most base metals stabilized and closed higher, but met resistance at the moving averages. So, the growth will be restricted on Monday. Base metals will keep divergent on Monday.

SMM Price Outlook for Base Metals on SHFE (May 8, 2017)

According to China’s April official manufacturing PMI, export and import growth declined and index of import and new export order also dropped. Moreover, market supply and demand growth fell and index of production and new orders also declined. Hence, there is a possibility for trade balance to drop in April.

US’s nonfarm payrolls increased sharply in April and unemployment continued falling, a sign of full employment. If LMCI employment condition, which will be issued Monday night, rises, it will send US dollar index up.