Key Macroeconomic Indicators for Base Metal Prices (2017-8-3)

Published: Aug 3, 2017 09:19
Eyes should be on China’s July Caixin service PMI, eurozone’s June retail sales, US’s initial jobless claim in the week ending July 28 and June durable goods orders, and BOE's interest rate decision.

SHANGHAI, Aug. 3 (SMM) – On Thursday, eyes should be on China’s Caixin service PMI in July, eurozone’s retail sales in June, US’s initial jobless claim in the week ending July 28 and durable goods orders in June and the Bank of England(BOE)’s interest rate decision. US dollar index remained weak on Wednesday’s night trading and rallied slightly at the tail of trading. US dollar index will keep falling before the release of nonfarm payroll on Friday. But, this shored up base metals, and there is a possibility for copper and tin to surge in a short term, though they underperformed on Wednesday’s night trading.

China’s Caixin service PMI dropped in June. Although service PMI remains in upward track, its growth is likely to slow down. Caixin manufacturing and service PMIs diverged from the beginning of 2017.

SMM Price Outlook for Base Metals on SHFE (Aug. 3, 2017)

Eurozone’s retail sales are expected to drop in June from May’s level, which reflects consumption expenditures in the country. Recent economic data shows prudent economic recovery in eurzone, but gloomy inflation and salary growth will restrict retail sales.

US’s ignition jobless claim will fall in the week ending July 28, but as labor market will remain in tight pace, this will make small impact to market.

BOE is expected to hold interest rate unchanged, and market players eye on vote, policy announcement and Carney’s speech, which will make big effect on euro. BOE officials are divergent on rate decision, with most officials supporting to tighten monetary policy. However, lower-than-expected inflation data eased the dispute, lowering market expectation on tightening monetary policy.
Fresh reading of US’s durable goods orders surged in June, hitting the highest from July 2014. Equipment outlay in Q2 will shore up economic growth, and investment banks also raise economic forecast on US. However, final reading of durable goods orders will drop in June, weighing down US dollar market.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
16 hours ago
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Read More
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan
16 hours ago
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
16 hours ago
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Read More
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.
16 hours ago
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
17 hours ago
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Read More
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."
17 hours ago