Key Macroeconomic Indicators for Base Metal Prices (2016-12-12)

SHANGHAI, Dec. 12 (SMM) – Whether the Fed will raise interest rate at December policy meeting will be a focus of markets this week. Manufacturing PMIs from western countries for December will be released on Thursday in advance due to the upcoming Christmas holiday. Base metals will fluctuate widely this week, with risk aversion and investors retreating after profit-taking expected.

China’s economic indicators improved in Q4 thanks to money injection in the first half of the year. Expectations that China’s inflation will increase noticeably strengthened as China tightened policy against the property market at the end of the year. Commodity prices thus were pushed up. Value added at China’s industry due for release on Tuesday will rise significantly in the first eleven months of the year, but investment in the property market is expected to have been dampened.

Base Metals to Trade in Wide Range, SMM Says

The market expects the Fed to hike interest rate at December meeting. US long-term loan interest rate increased significantly recently. MBA 30-year fixed rate mortgage will be announced on Wednesday.

Bank of England and Swiss National Bank will announce their interest rate decision this week. The European Central Bank (ECB) curtailed monthly purchases whilst extending Quantitative Easing.

December manufacturing PMIs from western countries will be announced 10 days earlier due to the nearing of Christmas holiday, and this may weaken the flash data. But overall data are still promising.