Key Macroeconomic Indicators for Base Metal Prices (2016-6-13)

SHANGHAI, Jun. 13 (SMM) – China’s investment data in May due for release this week and Fed’s interest rate meeting for June to be held this week should compound pressure on base metals this week.

China’s fixed asset investment, investment in the private and property sectors, retail sales and profit at large industrials in May will be announced this morning.

China’s fixed investment growth rose slightly during January-April thanks to massive credit loans. But growth in investment in private sector slowed. The difference between the growth is expected to widen in May.

New loans in China’s four largest state-owned commercial banks increased 50% MoM in May, compared with RMB 171.9 billion in April. China’s CPI rose 2% YoY due to sufficient liquidity.

The market expected the Fed may raise interest rate in June or July. The US dollar index has climbed to near 95.

The Bank of Japan and Bank of England will announce their interest rate decision in June this week. The US dollar index is expected to rise even if they do not take easy measures.

China’s economic data and exchange rate volatility should weigh on base metals, but a few metals may pick up.