SHANGHAI, Aug. 22 (SMM) – Eyes should be on eurozone’s ZEW economic sentiment index in August and US’s FHFA home price index in June on Tuesday. US and South Korea started military drills against North Korea’s nuclear and missile programs on Monday, enhancing geopolitical conflicts. US dollar thus slumped to 93, and will fluctuate at current level in a short term. Base metals will keep diverging with most rising. Attention should be on a possible decline in a short term.
Eurozone’s economy remained positive based on its GDP in Q2 and June’s trade balance released last week. ZEW economic sentiment index is expected to rise in August after a decrease in July.
SMM Price Outlook for Base Metals on SHFE (Aug. 22, 2017)
Gloomy real estate in US is attributed as the main factor to slow economic recovery. US’s new home starts and building permits both fell short of forecast in July. But, this may indicated that real estate market will improve in Q3, and housing construction will register rapidest growth since Q3 2010. Robust home demand will shore up home prices. Hence, US’s FHFA home price index is predicted to increase in June.
As NYMEX 1709 oil will be delivered at 02:30 on August 23, oil price will be volatile. Market participants are suggested to be wary of investment.
