SHANGHAI, Jan. 11 (SMM) –
Macro Economy: ECB and BOE Remain Interest Rate Unchanged
Although the US initial and continuing jobless claims reported last week continued to grow, no signs of deterioration of employment were seen.
In Europe, the European Central Bank maintained its interest rates unchanged, and the Bank of England also kept the benchmark interest rate and asset purchases unchanged, within market expectations. The minutes for policy meeting of the BOE will be released January 23.
Industry Analysis: PPI Sees Recovery, Profits at Nonferrous Industry Up
Data from the National Bureau of Statistics showed that China’s CPI grew 2.5% in December. CPI for 2012 was up 2.6% YoY, while December’s PPI was down 1.9%, with the decline narrowing, reflecting that industrial production was recovering and profits in nonferrous metals industry were up gradually.
According to data from the National Development & Reform Commission (NDRC), nonferrous metals industry realized RMB 147.5 billion in profits during the first 10 months last year, with October’s profits up 4.55% MoM to RMB 18.4 billion, rising for the fourth consecutive month.
PPI reported negative growth for 10 months last year, and the YoY decline hit as much as 3.6% last September. But the data started to recover in late 2012 with the YoY decline in December narrowing to 1.9%.
The introduction of positive policies for growth stabilization and a series of construction projects approved by the NDRC since last September helped domestic industrial production improve. Meanwhile, global economy also saw mild recovery, pushing up oversea demand and driving China’s export growth to climb to 14.1% in December.
Meanwhile, China’s official PMI expanded for three consecutive months and the HSBC PMI held above 50 for two months, suggesting a turnaround in PPI data in 2013. In this context, profits in nonferrous metals industry may present uptick.