Key Macroeconomic Indicators for Base Metal Prices (2017-3-16)

SHANGHAI, Mar. 16 (SMM) – US February housing starts, construction permits, the number of initial jobless claims last week, Philadelphia Fed’s manufacturing index and eurozone annualized February CPI will be released today. Interest rate decision by Japan, Switzerland and UK and statement by European Central Bank’s (ECB) Ignazio Visco will be a focus of markets. Base metals strengthened with the exception of tin, and any upward momentum will be constrained today.

SMM Price Outlook for Base Metals on SHFE (Mar. 16, 2017)

NAHB home market index for the US rose sharply in March, boding well for US housing market. House loan interest rate will also increase after Fed’s rate hike. In this context, US housing starts in February and construction permits will be high in February.

Eurozone February CPI will rise. The market expects European Central Bank to end Q3 soon. If eurozone inflation climbs further, the ECB may advance tightening measures.

The market expects Japan and UK to leave rate unchanged. Bank of Japan may increase its forecast for economic outlook. And the Bank of England may also given some hints on interest rate hike.