Key Macroeconomic Indicators for Base Metal Prices (2015-12-16)

SHANGHAI, Dec. 16 (SMM) – Focus is turning to a series of economic figures on Wednesday, including December’s flash manufacturing PMI from US and euro zone, November’s final CPI from euro zone and US new home sales. Investors stay cautious ahead of the release of US Fed’s interest rate decision.

Little impact is expected from euro zone’s manufacturing PMI in December and November’s final CPI should not improve, which will likely depress euro and in turn support dollar.

US October’s building permits beat forecast, boosting possibility that new housing starts will pick up in November. However, employment only grew 16,000 in November in building sectors, below October’s rise of 35,000. Besides, US November’s NAHB builder confidence fell back to 62 from a 10-year high. Both factors indicated that US November’s building permits will possibly post a fall.

US API and EIA crude oil inventories posted declines a week earlier. Should the drop continue in crude inventories last week, crude prices will get boost. But according to figures released this morning, US API crude inventories surged by 2.3 million bbl last week, far above the expected decline of 1.4 million bbl. As such, crude prices erased earlier gains.