Key Macroeconomic Indicators for Base Metal Prices (2016-3-1)

SHANGHAI, Mar. 1 (SMM) –Market will eye February manufacturing PMI from China, the US and Europe today, as well as January jobless rates in euro zone members and primary contests for US presidential candidates. 

China’s official manufacturing PMI is unlikely to see improvement in February, due to falling production activities around the 2016 Chinese New Year holiday period. The Chinese government is keen to address overcapacity, and businesses are active in destocking.  

Euro zone’s flash manufacturing, service and composite PMI were all negative in February. Euro zone’s economic climate index also fell to the lowest since June 2015 in February. With inflation persistently tepid, final manufacturing PMI for euro zone and its members, due to release tonight, will see no turnaround. This will strengthen expectations for monetary easing from the ECB in March.  

New York Fed’s manufacturing index fell for seven months in a row in February. Philadelphia Fed’s manufacturing index was stuck in negative territory for six months running in February. These suggest that final US manufacturing PMI for February will likely continue falling. 

Many states of the US will hold primary contests for US presidential candidates on Tuesday.

See SMM price forecast:please click Shanghai Market Lacks Rising Strength Despite China Reserve Rate Cut, SMM Says