SHANGHAIM, Jun. 21 (SMM) – Eyes should be on US’s API and EIA crude oil inventory from the week ending June 16 and pending home sales in May on Wednesday. Most base metals dropped from highs on Tuesday’s night trading and some metals stopped falling at the tail of trading. Base metals will be divergent on Wednesday.

US’s pending home sales are expected to stay high in May due to brisk demand, despite of low inventory and high housing price, raising market optimistic outlook over home sales. According to US’s National Association of Realtors (NAR), US’s pending home sales will grew 3.5% to 5.64 million in 2017 and will keep rising by 2.8% to 5.80 million in 2018.

SMM Price Outlook for Base Metals on SHFE (Jun. 21, 2017)

MSCI released results of market classification and announced to include China’s A-share in the MSCI Emerging Markets Index and the MSCI ACWI Index, which will be taken place in June 2018. 222 China A Large Cap stocks, representing on a pro forma basis approximately 0.73% of the weight of the MSCI Emerging Markets Index, will be included, which will shore up domestic stock market.

Federal Reserve Bank of Dallas Chairman delivered a speech on Wednesday morning that US Federal Reserve’s slow rate hike will help economic growth and soft inflation will not be a trend.

US’s API crude oil inventory dropped from the week ending June 16, while gasoline and refined oil inventories registered higher-than-expected growth. COMEX 1708 oil fell from high to USD 43/bbl.