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US Home Price Index rose less than expected by 0.7% in May, compared with April's downwardly revised 0.5% growth. Richmond Manufacturing Index fell unexpectedly in July to -11. Downbeat figures caused the US dollar index to drop for a third straight day, lending support to base metals prices.
Chinese Premier Li Keqiang again underscored pro-growth policy during his tour to Guangxi. He said efforts should be made to step up investment in railway construction so as to promote social financing. Investment and Financing System Reform in Railway Sector will be forwarded to the State Council before September and will likely be implemented at the end of this year. China Railway Corporation issued RMB 20 billion worth of 10-year railway bonds yesterday, with bid interest rate at 4.15%-5.15%. This boosted base metals prices and China's stock market. It was reported that Premier Li Keqiang said the Chinese government will not tolerate a less than 7% economic growth, alleviating worries over a steep downshift in the Chinese economy.
The US dollar index lost 0.27%, while the euro gained 0.29% against the US dollar, a new one-month high. US stock markets were mixed, with Dow Jones hitting a new record high. European stocks closed with losses. Asian shares generally closed up. LME base metals prices rose across the board.
LME zinc prices will move between USD 1,875-1,895/mt today, and SHFE 1310 zinc contract prices should fluctuate between RMB 14,620-14,720/mt, with spot premiums against SHFE 1309 zinc contract prices between RMB 60-100/mt.
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