Key Macroeconomic Indicators for Base Metal Prices (2016-7-6)

SHANGHAI, Jul. 6 (SMM) – Base metals mostly closed with losses overnight and will diverge today.

US trade data in May slated for release today are expected to deteriorate. A strong US dollar index, combined with sluggish economy worldwide, hurt US exports. US domestic demand also softened sharply, so US trade deficit may expand.

Markit’s service PMI in June for the US is expected to remain flat at flash figures. New business slowed, while growth in employment was the slowest since January 2015. Enterprise optimism also fell to a record low.

New York Fed Chairman affirmed US economy is still positive as a whole, but UK’s vote to leave the EU is an unfavorable factor for US economy. Inflation rate is still low, and economic outlook is still obscure.

San Francisco Fed Chairman predicts US economic growth may be lower than 2% in 2016, and Fed’s rate hike will be executed gradually.

Despite dovish statement by the two Fed officials, the US dollar index climbed further.