Key Macroeconomic Indicators for Base Metal Prices (2016-3-7)

SHANGHAI, Mar. 7 (SMM) – Major macroeconomic figures are lacking this week with eyes on the NPC & CPPCC and interest rate meeting results by the ECB.

China’s government emphasized the supply side reform on the NPC held on March 5 and targets 6.5%-7% GDP growth and 3% CPI growth in 2016. The government planned RMB 2.18 trillion financial expenditure in 2016, a rise of RMB 560 billion year-on-year, with deficit rate up to 3%. The special bonds for local governments should be RMB 400 billion. M2 supply is expected to grow by 13% and 13% growth also expected for total social financing.

The ECB will release the result of its March interest rate meeting. In the past one year, manufacturing industry in euro zone posted modest recovery, which however, is not steady. The fall in manufacturing PMI in recent 2 months triggers worries in market. Thus, more loose policies are expected to be released in euro zone this week. Considering increasing loose policies in major economies, US Fed will likely have to slow its interest rate hike pace.

Shanghai Base Metal Poised to Rise This Week, SMM Says