Base Metals Open High Before Falling

SHANGHAI, Jul. 22 (SMM) - US June existing home sales and Chicago Fed National Activity Index were released today.

Latest US construction permits data and housing starts were pessimistic, and continued to slow. But as US home prices continue to hit record highs, the market is optimistic towards home sales, which will at least not drag down base metals prices. The recovering US property market boosted market confidence some as China's economic growth has been slow.

News from the G20 meeting reported there are countries hoping China will take measures to boost economic growth so as to drive up other economies. Chinese Finance Minister Lou Jiwei rejected and believes growth in China's job market and service investments shows economic in vigor is strengthening. 

Japan's ruling coalition led by Shinzo Abe won a majority of seats in the upper house of parliament in Sunday's election. Shinzo Abe will continue to push easing monetary policies while implementing economic reform in the near future, which will push up the US dollar against JPY above 100.

China's base metals prices should open high but fall later on Monday.