[Base Metal] Key Macroeconomic Indicators for Base Metal Prices (2015-7-31)

SHANGHAI, Jul. 31 (SMM) – US Q2 growth released Thursday was up 2.3% MoM, lower than the 2.5% rise expected. But Q1 growth was revised upwardly from a 0.2% shrink to a 0.6% increase. The number of initial jobless claims for the week ending July 25 was 267,000, better than the 270,000 expected and compared to the 255,000 in the previous week. This drove up the US dollar, weighing down base metals.

The IMF said it will not provide Greece a third round of aid due to the country’s large debt scale and inefficiency in reform execution. German officials believe the German Bundestag will unlikely approve the EUR 86 billion bailout fund for Greece without the support from the IMF. This overshadowed Greek outlook. Germany’s unemployment increased 9,000 in July, lower than the 5,000 expected, with the unemployment rate unchanged at 6.4%, which is in line with market expectations. Eurozone July CCI fell 7.1, flat at June’s and in compliance with market anticipation. This means German economy looks set to weaken in Q2.

Chinese President Xi Jinping pointed out at the meeting held by the CPC Central Committee Political Bureau July 30 Chinese economy is faced with pressure, and additional stimulus measures are needed in the latter half of the year to help stabilize economy.

The US dollar index rose 0.32%; The EUR:USD dropped 0.46%; US stocks markets increased; European stocks mostly climbed. LME base metals prices dropped across the board.