Key Macroeconomic Indicators for Base Metal Prices (2017-5-23)

SHANGHAI, May 23 (SMM) –Market will eye Markit’s preliminary manufacturing PMIs for France, Germany, the euro zone and the US in May, final Q1 GDP in Germany, as well seasonally adjusted home sales in the US in April on Tuesday. 

Markit’s preliminary manufacturing PMIs for France, Germany, the euro zone and the US are expected to stay high in May. Economy in the euro zone is recovering steadily. New York Fed manufacturing index fell sharply in May. But, Philadelphia Fed manufacturing index rose more than expected in May and was much better than April’s figure. This suggests manufacturing PMI in the US is likely to rebound in May after falling for three months in a row. 

Housing starts and building permits in the US missed forecasts in April, which are signs of a slight cool-down in US housing market. As such, seasonally adjusted home sales in the US are expected to drop in April. Market will also closely watch remarks by US Fed official Brainard. The US dollar will soften further if seasonally adjusted home sales fall as expected or if  Brainard made dovish remarks.  

See SMM price forecast, please click: SMM Price Outlook for Base Metals on SHFE (May 23, 2017)