SHANGHAI, Dec. 6 (SMM) – Final reading of Eurozone’s GDP in Q3 will be released on Tuesday. Eyes should be on US’s economic data on Tuesday, including October’s balance of trade, October’s durable goods, factory order and December’s IBD consumer confidence index. Most US’s economic data released on Monday’s night were positive, but US dollar index remains weak, supporting base metals. Base metals are expected to strengthen on Tuesday.
Eurozone’s economy is stable, although Europe is in troubled times. Eurozon’s GDP growth in Q3 will not rally to 1.7% seen in Q1, hurt by slowing down Germany economy growth in Q3. But, Eurozone’s GDP will remain Q2’s level in Q3, according to rallying manufacturing PMI and inflation.
Fresh reading of US durable goods orders rose 4.8% MoM in October, the largest growth since October 2015, with reading (deducting transportation equipment) up 1% MoM, which were both higher than expectation and September’s level. And this is closely related to rising fresh reading of US Markit manufacturing PMI in October and surging new orders. Thus, US factory and durable goods order will improve in October with increasing growth of new orders.
US St. Louis Federal Reserve Chairman James Bullard delivered hawkish comment on Tuesday morning. Bullard said that it is appropriate to hike interest rate in December.