Key Macroeconomic Indicators for Base Metal Prices (2017-2-3)

Published: Feb 3, 2017 09:38

Save

Attention should be on a series of data on Friday, the first trading day after 2017 Chinese New Year holiday.

SHANGHAI, Feb. 3 (SMM) – Attention should be on a series of data on Friday, the first trading day after 2017 Chinese New Year holiday, including China’s Caixin manufacturing PMI in January, US’s nonfarm payroll report in January, unemployment rate, salary growth and labor force participation rate. In other news, Chicago Federal Reserve Chairman will deliver a speech on Friday.

During 2017 Chinese New Year holiday, US dollar index dropped below 100, sending crude oil and precious metals up. Base metals on LME market underperformed other commodities and were divergent. LME nickel outperformed other metals and increased for 5 days in a row. Base metals on SHFE market will remain mixed on Friday.

SHFE Reopens after Holiday, with Prices to Look for Direction, SMM Says

China’s official manufacturing PMI released during the holiday was 51.3. Although the data was lower than previous data of 51.4, it was higher than expectation of 51.2. Manufacturing PMI fell due to 2017 Chinese New Year holiday while new export orders increased. Caixin manufacturing PMI will decline slightly to 51.8.

US’s ADP employment increased sharply in January and ISM manufacturing was higher than expectation. Markit manufacturing PMI hit the highest since September 2014 in January 2017. US’s initial jobless claim issued on Thursday fell below 250,000 from the week ending January 26, which was much higher than expectation and previous data. US’s nonfarm payroll report is expected to increase. But any growth of US dollar index will be limited by negative technical indicators and Trump’s comment on US dollar.

Macroeconomic Indicators base metals

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

20 hours ago

"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"

Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan

20 hours ago

"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.

20 hours ago

21 hours ago

Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions

After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."

21 hours ago