SHANGHAI, Nov. 7 (SMM) -A series of key economic data will be released this week and all eyes will be on result of US presidential election.
The US will release LMCI for October on Monday, which will be positive and strengthen expectations for rate hike in December. US non-farm sector added 161,000 jobs in October, while average hourly wage rose 2.8% YoY, which pushed the US dollar index up. But the US dollar index fell back later due to risk aversion before US presidential election.
The preliminary result of US presidential election will be released by mid-noon on November 9. Hilary is ahead of Trump slightly, but the leading edge is narrowing. Trump’s conservative stance in economic and political stance will prevent risky assets from rising. The US dollar suffered selloffs with growing support rate for Trump.
China’s foreign trade data will be eyed. Yuan has weakened to over 6.79 since October. But, a weaker yuan will not necessarily boost exports, due to rising labor costs and high technical barrier.
China will release October CPI and PPI on Wednesday. PPI returned to positive growth in September, with all industrial data pointing to turnaround. Among the nine production materials, prices for eight of them rose in October, with nonferrous metals prices up 5.3%. So, year-on-year growth of PPI should accelerate to 1.0% in October.
See SMM price forecast, please click: Market Caution to Grow for US Presidential Election, SMM Says