Key Macroeconomic Indicators for Base Metal Prices (2017-5-2)

SHANGHAI, May 2 (SMM) – Market will eye Caixin’s China manufacturing PMI for April, Markit’s manufacturing PMI for Italy, France, Germany and the euro zone in April, as well as the euro zone’s jobless rate in March, which will be released today.
  
China’s official manufacturing PMI dropped in April, but PMI at SMEs rose for two months in a row and was 1.4 higher than in March at 50, the first time in recent two years that the figure entered expansion territory. This suggests business conditions have improved at SMEs. As such, market expects Caixin’s China manufacturing PMI for April to be slightly better than previous figure. 

Considering continuous improvement of euro zone economy since last year, it is expected that Markit’s manufacturing PMI for Italy, France, Germany and the euro zone will stay high in April.

US Secretary of Commerce Ross said this morning that the US economy has good reasons to perform better than before and hopes to complete tax reform in 2017. Ross said he would be very disappointed if US economy grows just 2-2.5% once Trump’s reform is in place. In other words, there is no reason US economic growth does not return to above 3% if reform is carried out.   
See SMM price forecast, please click: SMM Price Outlook for Base Metals on SHFE (May 2, 2017)