Key Macroeconomic Indicators for Base Metal Prices (2015-9-11)-Shanghai Metals Market

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Key Macroeconomic Indicators for Base Metal Prices (2015-9-11)

Price Review & Forecast 11:02:07AM Sep 11, 2015 Source:SMM

SHANGHAI, Sept. 11 (SMM) – China’s August CPI rose 2.0% YoY to hit a new high since August last year, but much lower than the 3% target for the year. PPI slid for the 42nd straight month, falling 5.9% YoY to hit its lowest since September 2009. The rise in CPI is helped by higher food prices, with non-food prices remaining at 1.1%. In this scenario, additional stimulus measures are expected in China.

Chinese Premier Li Keqiang said at the Davos Forum China will stabilize yuan’s exchange rate at a reasonable level, and will expand financial openness. China will allow the entrance of foreign central banks into China’s interbank foreign exchange market, and will complete RMB cross boarder settlement system by the year-end. Offshore RMB rose noticeably yesterday.

The Bank of England maintained its benchmark rate unchanged at 0.5%, and left quantitative easing at GBP 375 billion. The bank expects domestic inflation rate will stay low due to sluggish crude oil prices. Besides, the Standard&Poor’s rating agency lowered Brazil’s credit rating to junk status, adding to market concerns over global economic outlook. Market uncertainty grows whether the Fed will raise interest rate in September against slow recovery worldwide.

The number of initial jobless claims in the US for the week ending September 5 was 275,000, level with market expectations, but lower than the 281,000 expected. The number of initial jobless claims in the past six months was below 300,000, meaning US job market continues to stabilize.

EIA reports crude oil inventories in the US grew 2.57 million bbl for the week ending September 2, compared to the 1.74 million bbl growth expected and the 4.67 bbl growth a week earlier. It was reported OPEC sees crude oil prices stay low through 2015. The most active oil contracts on the NYMEX rose 3.67%.

The US dollar index fell 0.45%; the euro against the US dollar climbed 0.63%; US stocks gained, while European stocks declined. LME based metals prices increased with the exception of zinc. 


Key Words:  base metals 

Key Macroeconomic Indicators for Base Metal Prices (2015-9-11)

Price Review & Forecast 11:02:07AM Sep 11, 2015 Source:SMM

SHANGHAI, Sept. 11 (SMM) – China’s August CPI rose 2.0% YoY to hit a new high since August last year, but much lower than the 3% target for the year. PPI slid for the 42nd straight month, falling 5.9% YoY to hit its lowest since September 2009. The rise in CPI is helped by higher food prices, with non-food prices remaining at 1.1%. In this scenario, additional stimulus measures are expected in China.

Chinese Premier Li Keqiang said at the Davos Forum China will stabilize yuan’s exchange rate at a reasonable level, and will expand financial openness. China will allow the entrance of foreign central banks into China’s interbank foreign exchange market, and will complete RMB cross boarder settlement system by the year-end. Offshore RMB rose noticeably yesterday.

The Bank of England maintained its benchmark rate unchanged at 0.5%, and left quantitative easing at GBP 375 billion. The bank expects domestic inflation rate will stay low due to sluggish crude oil prices. Besides, the Standard&Poor’s rating agency lowered Brazil’s credit rating to junk status, adding to market concerns over global economic outlook. Market uncertainty grows whether the Fed will raise interest rate in September against slow recovery worldwide.

The number of initial jobless claims in the US for the week ending September 5 was 275,000, level with market expectations, but lower than the 281,000 expected. The number of initial jobless claims in the past six months was below 300,000, meaning US job market continues to stabilize.

EIA reports crude oil inventories in the US grew 2.57 million bbl for the week ending September 2, compared to the 1.74 million bbl growth expected and the 4.67 bbl growth a week earlier. It was reported OPEC sees crude oil prices stay low through 2015. The most active oil contracts on the NYMEX rose 3.67%.

The US dollar index fell 0.45%; the euro against the US dollar climbed 0.63%; US stocks gained, while European stocks declined. LME based metals prices increased with the exception of zinc. 


Key Words:  base metals