SHANGHAI, Jul. 27 (SMM) – Base metals will lack rising strength on Wednesday with focus on profits at Chinese above-scale industrial enterprises for June, US API and EIA reports, US June durable goods orders and pending home sales.
Base Metals Lack Rising Momentum, SMM Reports
Markets expect Chinese above-scale industrial enterprises for June to be negative. Value-added at Chinese above-scale industrial enterprises posted modest rise in June but the ex-work price index slipped. This will cut profits for domestic industrial enterprises.
US housing starts and building permits registered growth in June and new and existing home sales were upbeat, a reflection of recovery in demand in US housing market. This will be reflected in the pending home sales for June.
US durable goods orders for June should improve over May’s level. The flash Markit manufacturing PMI for June returned from a 6-year low to a 3-month high with sharp growth in new order and new export order sub-indexes. The final reading of the figure was also positive and this indicates that the durable goods orders may pick up in June.
IMF economist Obstfeld believed that many uncertain factors may lead to delay in US rate hike to December. And whether US Fed will raise rate at that time will rely on economic figures and who is the US president after generation election.
Declines in US last week’s API oil stocks missed forecast and prior level, after release of which, US September delivery oil futures posted small losses.