SHANGHAI, Dec. 23 (SMM) – Major economic indicators scheduled for release today include US crude oil inventories, new home sales and PCE price index, which are expected to be mixed. This will trigger market speculations at what pace the Federal Reserve will raise its interest rate in the future, but will give little effect on base metals. As investors leave the market ahead of the Christmas holiday, trading will mute, leaving base metals prices in check.
US November PCE price index is expected to improve. US November core CPI met Fed’s target, excluding food and crude oil. Should crude oil prices rise in H2 2016, US CPI will improve further.
US durable goods orders in November are not promising. ISM November manufacturing index fell from 50.1 in October to 48.6, the lowest since June 2009, due to lower production of automobile and metals against soft demand.
University of Michigan’s December CCI for the US is expected to rise, basing on rebounding IBD December CCI in December and better outlook for the US job market. Nevertheless, growth in US salaries is still limited.
OPEC basket oil prices dropped to an 11-year low of USD 30.74/mt on Tuesday, boding ill for the crude oil market. But API crude oil inventories in the US fell more than expected last week, which will give some support to oil prices.