SHANGHAI, May 5 (SMM) – Base metals should continue see weak trading on Thursday with firmer dollar and weaker crude oil prices.
US April ADP employment turns out to be negative. Attention is turning to US Last week’s initial jobless claims and US April Challenger job-cut monthly report, which will directly affect market expectation for non-farm payrolls due for Friday. It is uncertain that the initial jobless claims stays below 300,000 for 61 weeks in a row. The number of rigs drilling for oil in the US dropped for 6 straight weeks and this means growth in unemployment in this industry, which may negatively affect Challenger job-cut report.
Recently, several US Fed officials delivered hawkish speeches. Should James Bullard, President of Federal Reserve Bank of St. Louis, also hold hawkish attitudes, US dollar index will get support.