SHANGHAI, Dec. 2 (SMM) – Base metals prices are expected to strengthen today due to output cut news at Chinese smelters.
Eurozone November CPI slated for release today is expected to stay low. Eurozone October CPI increased but fell far short of the 2% target. In this scenario, the market is expecting European Central Bank to expand quantitative easing this Thursday.
US non-farm employment numbers will be released this Friday. Should the result be upbeat, the US dollar will return to 100.
Many Fed officials will speak today, with markets eyeing on any hints on a possible interest rate hike in December.
API crude oil inventories in the US unexpected increased 1.60 million bbl last week. The growth narrowed compared to a week earlier but still much higher than the 471,000 bbl increase expected. Inventories in Cushing climbed 453,000. This raised concerns over oil oversupply and will depress market sentiment in base metals.