SHANGHAI, Dec. 20 (SMM) – Attention should be on Bank of Japan (BOJ)’s interest rate decision in December’s meeting on Tuesday and BOJ President Kuroda’s speech. Eyes should be also on Germany’s PPI in November on an annual basis on Tuesday, a light calendar day. Base metals dropped across the board both on LME and SHFE markets on Monday’s night trading with most of them falling sharply. Almost all SHFE lead contracts dipped to their daily downward limits on Tuesday. However, most metals stopped falling and rallied at the tail of Monday’s night trading. Base metals will likely see some corrections on Tuesday but any rebound will be limited.
Base Metals to See Weak Trading, SMM Says
Eurozone’s CPI hit a 2-year high in November which met expectation and was higher than October’s level. Germany’s CPI continued rising since April and is expected to keep growing in November.
Most market players predict BOJ to hold rate unchanged. Because it will take time for BOJ to reach inflation target. It seems that BOJ is not that eager to take stimulus to solve depreciating yen and rising stock market. Market players are more likely to find more clues about BOJ’s policies from Kuroda’s speech.
