Key Macroeconomic Indicators for Base Metal Prices (2016-8-26)

SHANGHAI, Aug. 26 (SMM) –Market will eye US Fed Chairwoman’s speech, US Q2 GDP and August University of Michigan’s consumer confidence index today. 

Preliminary annualized quarterly rate of US Q2 GDP was 1.2%, better than previous figure, but was much worse than expected. Preliminary annualized quarterly rate of US PCE was 4.2% in Q2, lower than forecast, but up from previous figure. Preliminary annualized quarterly rate of US core PCE was 1.7% in Q2, in line with forecast, but down from previous figure. The revised data for US Q2 GDP and PCE are expected to change little.  

US IBD consumer confidence index was better than expected and July’s figure in August. Preliminary data of University of Michigan’s consumer confidence index for August, though lower than expected, was better than July’s final figure. When combined with optimism over US manufacturing and housing markets, final figure of August University of Michigan’s consumer confidence index is expected to improve.    

US Fed Chairwoman will make a speech at the annual gathering of central banks in Jackson Hall today, which will give clues as to future policy path. If her speech is not as hawkish as expected, base metals will see big volatility. 

See SMM price forecast, please click: Base Metals to See Divergence, with Eyes on Yellen Speech