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On July 19, German parliament agreed on the plan from EFSF to rescue Spanish banking system worth up to EUR 100 billion, but both the chancellor and finance minister of Germany said Spain should maintain austerity policy and be responsible for the liability. In Spain, the 10-year government bond yield again rose close to 7%, pushing Spain’s parliament to approve austerity plan. This has boosted investor confidence and pushing the euro up. In the US, the Labor Department overnight released the initial jobless claims for the week ended July 14, the figure was up 34,000 to 386,000, higher than expected. US existing home sales slipped 5.4% during June to 4.37 billion homes, an eight month low. The weakening US economic data added to expectations on adoption of QE3 measures, dragging down the US dollar index and boosting LME base metals. In China, investors expect China should introduce further easing policies due to Premire Wen’s remark on creating more jobs, helping support metal prices.
In China’s domestic markets, spot tin prices should be between RMB 146,500-148,000/mt on July 20.
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