SHANGHAI, Apr. 19 (SMM) – Base metals are expected to remain range-bound today. ZEW Economic Sentiment Index and current situation in April for Germany and Europe, as well as US March housing starts and construction permits will be announced today. Panic from crude oil eased. But base metals will lack ability to rise.
IFO’s March Business Climate Index for Germany and Eurozone March CPI both topped market expectations, meaning quantitative easing measures by the European Central Bank showed some result. When combined with improvement in Eurozone March manufacturing PMI, ZEW’s Economic Sentiment Index and current situation for the Eurozone and Germany may turn around.
US construction permits in February fell short of market expectations, boding ill for US housing starts in March. NAHB’s home price index in April for the US was below market expectations, but remained high. As such, US March construction permits may improve.
Boston Fed Chairman said today the number of interest rate hikes may be more than pessimistic investors’ expectations, citing stabilizing fundamentals. This drove up the US dollar index.
See SMM price forecast, please click:Base Metal to See Pressure after Oil Price Rally, SMM Says