Key Macroeconomic Indicators for Base Metal Prices (2016-6-28)

SHANGHAI, Jun. 28 (SMM) – Diverging trend is expected for base metals on Tuesday with focus on US Q1 annualized GDP, house price index in 20 cities for April and June Conference Board’s CCI.

Markets expect US Q1 annualized GDP to be revised up. US Q1 actual GDP was revised up limitedly, which shows uncertainty in US economic outlook. This may bode ill for the annualized GDP.

Stocks remain tight and house prices still grow recently in US property market. As such, house price index in 20 big cities may see upward momentum.

US June IBD and University of Michigan’s CCI fell short of forecast, which weakens consumers’ confidence in UC economic outlook. As a result, this may be reflected in the June Conference Board’s CCI.

Ratings agency Moody's has changed the UK's sovereign rating from "stable" to "negative" due to the uncertainty unleashed by the result of the EU referendum. And the agency significantly cut forecast for UK’s GDP growth in 2017 and 2018.