Key Macroeconomic Indicators for Base Metal Prices (2016-8-12)

SHANGHAI, Aug. 12 (SMM) – Base metals will see weak swing on Friday with focus on China’s consumption, investment and industrial output data, and US and Germany’s inflation data for July, US retail sales for July and University of Michigan’s CCI for August.

Base Metals to Fall after Several Attempts, SMM Says

China’s investment growth may continue slowing in July and retail sales for June will likely drop. Value-added at domestic large industrial enterprises should keep stable.  

The seasonal adjusted GDP for Q2 from euro zone should maintain at 0.3% and the flash reading of the figure should stay at 1.6%, which will post limited impact on euro. According to a series of economic figures from euro zone, the Britain’s leave vote has limited effect on euro-zone’s economy.

US June monthly wholesale data topped expectation and the growth in wages for July accelerated. As such, the July retail sales may be positive. As a result, US dollar will move higher and this will depress base metals.