SHANGHAI, Aug. 9 (SMM) – Base metals should move in a wide range on Tuesday with eyes on China’s inflation data, social financing and new RMB loans for July and US IBD CCI for August.
The pork prices in China continued falling in July but vegetable prices grew higher, supported by flood. This may drag down the CPI for July. The nonferrous metals, steel and coal prices posted growth in July and thus, the declines in PPI will likely narrow in July.
British industrial output should improve in June and the country’s manufacturing PMI hit a new high since this January in June, which may boost industrial output in June. But this will support British pound limitedly given the fact of UK’s leave from EU.
US nonfarm payrolls performed well in June and July, which bolsters expectation for a rate hike in 2016. But the manufacturing PMI for July and building expenditures for June were disappointing. This mirrored uncertainty in US economic outlook, which may drag down the IBD CCI for August.
Housing sales in China slow further in July and falling demand for housing loans will lead to declines in new RMB loans in July. The PBOC mainly withdrew net capital from market in the month, which will also drag down total social financing.