SHANGHAI, Nov. 9 (SMM) –Market will eye US crude oil stocks and China October inflation data on Wednesday.
China’s CPI might return to 2% growth in October, due to rising food and non-food prices. Industrial product prices, such as coal, cement, steel and nonferrous metals, all rose in October. Raw material purchasing price index under China’s October official manufacturing PMI rose 5.1 to 62.6. So, PPI should rise as well.
Markit’s US manufacturing PMI hit the highest since October 2015 in October. Factory orders benefitted from growing domestic demand and exports. New order index also hit the highest since October 2015. So, US retail sales will continue improving in October. US wholesales are expected to be positive in September.
API US crude oil stocks grew slower last week, but the growth was higher than expected. This will dampen outlook for oil prices. But, gasoline and refined oil stocks continued falling, which limited declines in oil prices. US crude oil futures for December delivery fell after release of API US crude oil stocks, but then rebounded.
The FBI gave up accusations against Hilary early this week, increasing possibility for Hilary to win election. It is now widely expected that the US dollar will strengthen and commodity market will take a hit if Hilary wins, and vice versa. But, some also speculate that the result of presidential election might be delayed if history repeats the case of George W. Bush and AlGore back in 2000.
See SMM price forecast, please click: Base Metals to Get Support from China CPI Reading, SMM Says