Key Macroeconomic Indicators for Base Metal Prices (2015-10-20)

SHANGHAI, Oct. 20 (SMM) – Base metals prices should diverge today. US housing numbers in September and Germany’s September PPI scheduled for release today will be mixed.

US construction sector added 17,000 jobs in August and 35,000 in September, according to ADP data, meaning US housing starts are on the rise. Construction permits also increased, pointing to a growth in housing starts. Meanwhile, builder confidence in September unexpectedly reached a 10-year high in September.

Germany’s PPI in September, in contract, is expected to deteriorate. Germany’s September CPI held stable year-over-year, and the second lowest for the year. Energy price index was down 9.3%, suggesting the country’s September PPI will weaken further. This fueled market expectations that European Central Bank will step up easy monetary policy.