SHANGHAI, Aug. 5 (SMM) – US non-farm payrolls should be closely watched. Markets expect July’s ADP employment change to be downbeat.
Base metal prices were supported by Chinese stocks rallying Tuesday. The Shanghai and Shenzhen exchanges said in separate statements on Monday night that new rules, effective immediately, banned traders from borrowing and repaying stocks on the same day - a step that raises risks for short-sellers.
Chinese brokerages Great Wall Securities and Huatai Securities announced on Tuesday that they are temporarily halting short-selling services. The announcements on their websites follow a similar statement by CITIC Securities. Those factors helped to restricted short selling of stocks, sending China’s A-shares up 3.69%.
US Federal Reserve Bank of Atlanta Chairman Lockhart’s hawkish speech boosted the case for US Fed’s interest rate hike in September. As a result, US dollar index increased. US June’s factory orders grew 1.8%, versus May’s drop of 1.1%. US monthly durable goods orders for June held flat May’s 3.4%.
Greek Finance Minister and Greek Economy Minister will meet Greek’s international creditors next Tuesday to talk about privatization plan and bank recapitalisation programme. Greece must repay EUR 3.5 billion (USD 3.8 billion) in bonds held by the European Central Bank (ECB) on August 20. If the bailout negotiation has not been made then, Greek may need another bridging loan. Previously, the ECB has provided EUR 7.16 billion bridging loan to Greek.
US dollar index jumped 0.51% and London gold prices edged up 0.07%. US stocks were impacted by falling Twitter and AAPL stocks to drop while European stocks diverged. LME base metals grew across the board.
