Key Macroeconomic Indicators for Base Metal Prices (2017-4-20)

SHANGHAI, Apr. 20 (SMM) – Attention should be on US’s initial jobless claim from the week ending April 14 and fresh reading of eurozone’s consumer confidence index in April on Thursday. France will take third round of television debate of presidential election and G20 financial ministers will hold meeting with central banks’ governors. Most base metals increased on Wednesday’s night trading but met resistance at the moving averages. Base metals will remain divergent on Thursday.

US’s initial jobless claim was below 300,000 from the week April 7 for 110 weeks in a row, the longest circle since 1970. The data will remain positive from the week ending April 14.

SMM Price Outlook for Base Metals on SHFE (Apr. 20, 2017)

According to US Federal Reserve’s Beige Book released Thursday morning, US’s economy is under moderate growth but inflation is limited. It is harder for enterprises to attract and retain talents.

US Fed Vice Chair said that steady oversees production expansion helps financial market to stabilize and downside risk of economies have declined sharply. Rate hike will help economic expansion and reduce oversees risks.

G20 financial ministers and central banks’ governors are expected to discuss trade protectionism equal distribution of social wealth and exchange rate on the meeting.

OPEC Secretary General indicated that OPEC pays full attention to implementation of oil output cut agreement as it is facing crisis of confidence. All oil producing countries will dedicate to lower global oil inventory to a five-year average. More countries abided by the oil output cut agreement in March on a monthly basis. COMEX 1706 oil thus stabilized on Thursday morning.