SHANGHAI, Aug. 23 (SMM) – Attention should be on US’s EIA and API crude oil inventories from the week ending August 18, Markit manufacturing PMIs from eurozone and US and fresh reading of eurozone’s consumer confidence index in August. US dollar index registered largest growth in two weeks on Tuesday’s nigh trading due largely to gloomy economic data from eurozone. US dollar index will fluctuate at current level, waiting for more clues from global central banks meeting. Base metals will remain mixed, with lead and nickel outshining.
Final reading of Euronzone’s manufacturing PMI dropped from fresh one in July. Eurozone’s factory activity will be robust in the second half of year, despite of lower growth. Moreover, new orders keep stable increase, a sign of positive manufacturing in August. Enterprises expanded businesses, though prices hit a 10-month high. Hence, eurozone’s Markit manufacturing PMI will be higher than expected in August.
SMM Price Outlook for Base Metals on SHFE (Aug. 23, 2017)
Final reading of US’s Markit manufacturing PMI rose higher than expected in July, hitting a 3-month high, showing a positive economy in Q3. US’s Markit manufacturing PMI will increase in August.
Eurozone’s economic sentiment index is expected to stage small changes in August. Recent economic data showed positive economy in eurozone.
API crude oil inventory fell 3.6 million bbls in the week ending August 18, a small decline against levels in previous weeks, while gasoline inventory increased for three weeks in a row. COMEX 1710 oil thus slumped. Eyes should be on EIA crude oil inventory on Wednesday’s night trading.
