SHANGHAI, Mar. 11 (SMM) – Base metals prices should stay weak on Friday with diverging trend intensifying. Eyes will be on movement in Chinese stock market, Germany’s final annualized CPI for February and US annualized import price index for February.

The flash reading of annualized February CPI returned to negative growth and fell short of forecast and January’s level, which may explain why the ECB expanded looser-than-expected monetary policies on March 10. Considering recovery in crude oil prices, inflation in Germany will possibly pick up in February, though markets expect annualized final CPI to be flat with its flash level.

US February annualized import price index has extended gains since September 2015, confirming to performance of the country’s annualized CPI. Should the figure continue recovering, US February inflation will likely also picked up.

IEA monthly crude oil report will attract market attention today and its February report once cut crude oil demand in the OPEC countries and slashed expectation for global crude oil demand in 2016. 

Base Metal to See Weak Trading after ECB Rate Meeting, SMM Says