Key Macroeconomic Indicators for Base Metal Prices (2016-6-6)

SHANGHAI, Jun. 6 (SMM) – China’s financial market will be closed on Thursday and Friday for the Dragon Boat Festival.

US non-farm payrolls came in at 38,000 in May and this allowed US dollar index to erase the past one month’s gains, which will support base metals prices. The unemployment rate hit a low of 4.7% in May, which weakened expectation for rate hike in June or July.

Eyes will be on China’s economic figures for May, including inflation, investment, retail sales and value added figures.

The official manufacturing PMI for Chinese large industrial enterprises posted large declines in May and this boosts worries about narrowing growing in value added. The fixed-asset investment and private investment has been diverged heading into this year. The single support from stimulus measures is not effective enough.