Key Macroeconomic Indicators for Base Metal Prices (2015-12-22)

SHANGHAI, Dec. 22 (SMM) – US Q3 GDP and November existing home sales slated for release today are optimistic, which will boost the US dollar index. Base metals prices are expected to maintain upward trend today, but any increases will be constrained.

US final PCE price index in Q3 is expected to remain weak. Q3 GDP growth should remain flat at revised Q3 growth. Household spending only rose 3% YoY in Q3, falling short of the 3.6% increase in Q2. Exports and local expenditure also slowed.

US November existing home sales are expected to improve due to tight inventories and large increase in home prices. Existing home sales in western and southern US fell noticeably in October, dragging down existing home sales in October. Demand is thus expected to be released in November, helping grow sales in November.