US GDP Contracts in Q1, Keep an Eye on Subsequent Economic Data [[SMM Zinc Morning Comment]]

SMM, May 6:

Last Wednesday, LME zinc opened at $2,657.5/mt. Early in the session, it touched a high of $2,660.5/mt, then fluctuated rangebound along the daily average line. However, towards the end of the session, LME zinc fell sharply, hitting a low of $2,580/mt during the period. It eventually closed at $2,580.5/mt, down $70/mt or 2.64%. Trading volume increased to 11,538 lots, while open interest rose by 1,013 lots to 207,000 lots. Last Wednesday, LME zinc recorded a bearish candlestick, breaking below multiple daily average lines, with the KDJ indicator's divergence widening. Although the US Q1 GDP data showed contraction, service sector data still grew, indicating that the US economy had not yet entered a full-blown recession. The US dollar index continued to strengthen, weighing on non-ferrous metals. LME zinc pulled back significantly during the day.

Last Wednesday, SHFE zinc trading was suspended during the night session due to the Labour Day holiday.