Key Macroeconomic Indicators for Base Metal Prices (2016-9-2)

SHANGHAI, Sept. 2 (SMM) – Diverging trend will continue on base metal market on Friday with eyes on US nonfarm payroll report.

Base Metals Eye on US Non-Farm Result, SMM Says

US August ADP employment data beat forecast, which may indicate a positive reading of nonfarm payroll report. But employment sub-index of US August Markit manufacturing PMI recorded a 4-month low and that of ISM manufacturing index, Dallas Fed’s and Philadelphia Fed's manufacturing index all weakened. This raises uncertainties about the performance of US August nonfarm payroll report.  

Attention will be also on US August wage growth. The positive reading of the figure in July led those economic figures to be upbeat, including housing data, income, expenditure and August Conference Board’s CCI. Should the wage growth be positive in August, US economic outlook will keep upbeat.

Markets expect US July factory orders to improve markedly as output sub-index of US July Markit manufacturing PMI far beat June’s level and as output sub-index of US July ISM manufacturing PMI also posted month-on-month growth. US July durable goods order may stay robust considering improvement in output sub-index of flash and final Maikit manufacturing PMI for July.