Key Macroeconomic Indicators for Base Metal Prices (2016-2-2)

SHANGHAI, Feb. 2 (SMM) –Germany’s employment and PPI data are expected to be mixed, which will offer clues for whether the ECB will loosen monetary policy further. ECB President said on Monday that euro zone economy has being facing growing downward risks since December and inflation is weaker than expected. His remarks suggest that the ECB might introduce more stimulus measures during its March meeting to boost economy.  

The UK’s manufacturing PMI was positive. It remains to be seen whether the country’s construction PMI will remain positive. The UK’s National Institute of Economic and Social Research will release quarterly economy forecast for the UK and globe. 

US economic data released on Monday were mixed, with manufacturing PMI down. US Fed deputy chair said growing worries over global economic outlook, especially restructuring of the Chinese economy and falling commodity prices have triggered turbulence in global asset market. He added that it is now difficult for the US Fed to judge how such turbulence will affect its March policy meeting. Should situations develop to such an extent that they tighten financial conditions, it might be a signal of global economic slowdown and this will affect US economic growth and inflation. His speech strengthened expectations for slower US rate hike process.      

Investors will eye ISM New York business activity index for January and IBD US consumer confidence index for February. 

The Reserve of Bank of Australia is expected to keep benchmark interest rate unchanged at a record low of 2% today.