Summary of the lead morning meeting:
Macro:
It is reported that the United States and Mexico concluded trade talks on Wednesday and did not reach an agreement; Trump said the negotiations made progress, but not enough; in addition, Mexico may have drawn up a list of goods subject to retaliatory tariffs against the United States.
The Fed's Brown Book report shows that economic activity generally "grew slowly" from April to mid-May, an improvement from the "mild to moderate rate" of the previous period.
Us overnight economic data: the services index exceeded expectations in May, the fastest expansion rate since February, which means that the service sector, which accounts for 90% of the US economy, continued to expand, and the expansion momentum unexpectedly rebounded. In the recent economic data, the ISM non-manufacturing index has become a rare bright spot, and is different from the service industry PMI data of Markit in May. The ADP reported that the number of new jobs created by U. S. companies in May was the lowest since 2010, at just 27000.
The Chinese President held talks with the Russian President, and the two heads of state jointly announced the development of a comprehensive strategic cooperative partnership between China and Russia in the new era. The joint statement mentioned opposition to any form of protectionism, including unilateral trade sanctions. Maintain and consolidate an open, transparent, inclusive and non-discriminatory multilateral trading system based on the central roles and rules of the World Trade Organization; Russia is willing to provide China with sufficient oil and gas energy, is willing to increase the export of soybeans and other agricultural products to China, and hopes to speed up the docking between the Eurasian Economic Union and "Belt and Road Initiative."
The PMI of Caixin service industry in China recorded 52.7 in May, a three-month low, the overall confidence of enterprises in the coming year fell, setting the lowest level in the history of the survey, and the optimism of service enterprises also fell to the lowest level since July 2018.
The first year of China's 5G business has officially arrived, and the Ministry of Industry and Information Technology will issue 5G business licenses to China Telecom, China Mobile, China Unicom and China Radio and Television today.
Fundamentals:
The lead exploration in Shanghai has rebounded, but due to the downturn in downstream consumption, the holders have instead lowered their quotations. Among them, the southern lead in the Shanghai market quoted 80 to 100 yuan per ton of water for the 1906 contract, and Jinsha lead quoted 80 yuan per ton for the 1906 contract. In Jiangsu and Zhejiang markets, Wanyang lead quoted 40 to 60 yuan / ton for 1906 contract water, while the mainstream quotation for SMM1# lead average price was 30 yuan / ton for lead in primary lead refineries. In terms of recycled lead, the transaction situation of recycled refined lead has not improved, and the shipment of recycled refined lead is relatively difficult, and the mainstream quotation of recycled refined lead is 50 yuan / ton to flat water factory from SMM1# lead average price. At the same time, the demand of downstream storage enterprises is limited, only on demand carefully, the market transaction has improved slightly.
Lead price:
Lun lead closed on the film line, above the 40-day moving average pressure is greater, but due to the existence of the Federal Reserve interest rate cut expectations, the dollar or into the downward channel, to a certain extent, may be able to boost the non-ferrous trend; Shanghai lead returns to the physical negative line, through the trend of lead prices in the past half a month, basically tamping the fact that the Shanghai lead box is shaking, but we should pay careful attention to it. The low rebound height of Shanghai lead is gradually narrowed, and the short arrangement on the technical side is obvious. There is the possibility of breaking down in the future;
SMM1# lead prices are expected to be flat today.
