Key Macroeconomic Indicators for Base Metal Prices (2015-12-10)

SHANGHAI, Dec. 10 (SMM) –Market attention will focus on US jobless claims, the Bank of England (BOE)’s policy decision and OPEC’s crude oil stocks report on Thursday.  

US jobless claims were below 300,000 for 40 weeks in a row and frequently the lowest level in nearly 40 years, another positive evidence of the health of the US labor market. US jobless claims for last week will have limited impact on market sentiment, though, since it is widely expected that the US Fed will hike rate in December.

The BOE is likely to stand pat on monetary policy. The Confederation of British Industry (CBI) cut its growth forecast for UK economy in coming three years. Inflation in the UK is tepid, so is its manufacturing sector. These will give the BOE no reason to tighten monetary policy. That said, it is widely expected that the BOE will begin raising interest rate in 2016, citing mild salary increase and gradual easing of dispute among BOE Management Commission and core members of the BOE.  

The OPEC’s monthly crude oil report, released on November 12, showed that global crude oil stocks rose to the highest in at least 10 years. Should today’s report point to further deterioration of market fundamentals, crude oil prices will not escape the fate of declines.