SHANGHAI, Dec. 7 (SMM) – Wednesday is a light calendar day for economic data, but a series of crude oil data will be released the same day, including US’s two major crude oil inventories and EIA crude oil monthly report. Attention should be on Germany and UK’s industrial production in October and US JOLTs job vacancy in October on Wednesday.
Base metals still have rising room, indicated by stabilizing metals on Tuesday’s night trading, and will remain mixed performance on Wednesday. Aluminum prices is expected to move weakly due to soft fundamentals, but the price may be supported by other strong base metals for the short term with market expectation over inflation and falling Chinese yuan.
Base Metals to See Diverging, SMM Says
US nonfarm payroll report increased for three months in a row since September. However, unemployment hit the lowest level since August, 2007 at 4.6% in November, a sign of US robust employment market. So, there’s a possibility for JOLTs job vacancy to rise in October.
US API crude oil inventory released on Wednesday morning dropped surprisingly and COMEX 01 crude oil thus surged. Attention should be also paid to EIA energy monthly report, due for release on Wednesday’s night, and the result will show oil output at OPEC members, which is expected to keep rising significantly. And this will hurt oil price.
