SHANGHAI, Jun. 9 (SMM) – UK’s presidential election result, China’s inflation in May, M2 growth, informal financing, new loans and Baker Hughes rig count will be eyed by the market today. Base metals mostly closed with gains overnight, and are expected to diverge today.

According to agricultural product price index released by the Ministry of Commerce, China’s vegetable, food and egg prices fell further in May. vegetable prices dropped for 3 weeks in a row. China’s CPI in May may slow down, but is expected to rise on a yearly basis due to low cardinal number.

China’s industrial product prices were mixed in May. Oil prices continued falling. Stock replenishment also weakened. So, PPI is expected to fall in May.

 SMM Price Outlook for Base Metals on SHFE (Jun. 9, 2017)

M2 growth, new credit loans and informal financing in May are expected to decrease. Local debt replacement may weigh on new loans in May. When combined with tightening housing loans, new loans may fall in May.

The Conservative Party headed by Theresa Mary failed to win the majority of the exit polls, pushing down the pound. The market is still waiting for the final result. The pound may fall further if the result changes, which may affect negotiation on Brexit.

US President Trump said this morning infrastructure construction will accelerate like a rocket. The market will receive a boost if further details are released.