SHANGHAI, Dec. 5 (SMM) - Market investors will likely pay more attention to Eurozone among various economic data and news this week, as the rise of populism is adding clouds to the outlook for Eurozone. In addition, European Central Bank has to prepare for December’s meeting on December 8 because of a foregone conclusion that US Federal Reserve will hike interest rate in December’s meeting.
Italian voting for constitutional amendment started on December 4, which is considered as one macroeconomic event with the most surprising outcome after Brexit and US presidential election. If the vote fails, the populism will rise in Italy and relevant political party will win Italian presidential election within a few months. Then, the populism power will follow UK to vote for leaving from EU and Erozone.
Base Metals to Swing in Wide Range, SMM Says
Moreover, Francois Hollande, President of France, the second largest economy in Eurozone, claimed that he will not seek a second term, encouraging French right-wing forces. In the face of not unified politics, Eurozone may split up. Exchange rate of euro against US dollar will thus dive to a new low.
China’s economic data will be release this week, including November’s inflation and foreign trade. Inflation will increase at the end of year, and rising commodity prices will pass its impact from PPI to CPI continuously, creating a picture of improving economy in China.
Overall, base metals are expected to swing this week, and overall sentiment will be positive.
