Key Macroeconomic Indicators for Base Metal Prices (2017-2-6)

SHANGHAI, Feb. 6 (SMM) – Market players will see slight data calendar on Monday and Attentions should be on China’s foreign reserves in January, Eurozone’s Sentix investor confidence index in February and US’s labor market conditions index in January. According to monthly nonfarm payrolls, employment increased stably while wage growth declined, strengthening expectations over slow rate-hiking pace in US. US dollar index will thus drop. Base metal market will pick up with the end of 2017 Chinese New Year holiday and base metals are expected to keep divergent.

Base Metals to Diverge, SMM Says

US’s wage growth missed expectation and previous data in January. This, combined with rising unemployment, led to falling US dollar index. However, as US’s labor market is still positive, US’s labor market conditions index is predicted to be optimistic in January. Eurozone’s Sentix investor confidence index will be lower than previous data in February. In other new, European Central Bank President Macro Draghi will release a speech on Monday.

US president Trump strengthened sanctions on Iran, raising geopolitical factor. Moreover, oil reduction at OPEC members is approaching the goal. So, crude oil will keep firm. Eyes should be on negative effect from US’s oil shale output.