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[SMM Review] overnight Powell's testimony boosted Colored Black by inventory data
Jul 11,2019 08:53CST
translation
Source:SMM
In early trading this morning, the non-ferrous metals market fell slightly, and the market continued the rising atmosphere after the testimony of Powell, chairman of the Federal Reserve overnight, but prices fell slightly. At about 09:40 in the morning, Shanghai copper rose more than 1.46 percent, Shanghai lead rose nearly 1.51 percent, Shanghai nickel rose 1.56 percent, Shanghai aluminum rose 0.62 percent, and Shanghai zinc rose nearly 0.58 percent. As the Fed attended the release of doves overnight, it was almost certain that a rate cut cycle would begin this month, causing the dollar to fall to boost metals.
The content below was translated by Tencent automatically for reference.

SMM7 11: early this morning, the non-ferrous metals market fell slightly, the market still continued overnight Federal Reserve Chairman Powell in congressional testimony after the rising atmosphere, but prices fell slightly. At about 09:40 in the morning, Shanghai copper rose more than 1.46 percent, Shanghai lead rose nearly 1.51 percent, Shanghai nickel rose 1.56 percent, Shanghai aluminum rose 0.62 percent, and Shanghai zinc rose nearly 0.58 percent. As the Fed attended the release of doves overnight, it was almost certain that a rate cut cycle would begin this month, causing the dollar to fall to boost metals.

Fed Chairman Powell's testimony to the House Finance Committee shows that the Fed is concerned about future economic uncertainty and believes that US inflation has been curbed, business investment has slowed, and government debt remains high. Further these factors may be reasons for the Fed to further relax monetary policy. As a result, the Fed will take "appropriate" action to sustain US economic growth, and many members saw at the FOMC meeting in June that there was reason to relax policy to some extent.

Black end, thread and hot roll stabilized after falling overnight, at present, there are signs of accumulation at the end of steel, mainly reflected in the end of the steel mill. Threads fell 0.77% to 3994 and hot rolls fell 0.62% to 3865. At the raw material side, iron ore fell 0.29% to 875, coke fell 0.19% to 2086, and coking coal rose 0.22% to 1379.

In the last period of crude oil, oil prices rose 3.67 percent to 457.8. Mainly due to the sharp decline in EIA inventory data in the United States and the possible impact of hurricanes in the United States.

Technical analysis:

Aluminum: overnight Federal Reserve Chairman Powell delivered a speech, the United States Index short-term diving, a sharp fall in the evening, the metal driven by a good macro atmosphere, all floating red, Shanghai aluminum borrowing potential rose, because the macro news has not yet been digested, it is expected that today will still run between 13800 to 13950 yuan / ton, the center of gravity is higher than yesterday, is expected to run between 1800 and 1860 US dollars / ton today.

Zinc: overnight, the zinc stopped falling and turned red, and returned to the lower track of Brin Road, and the overnight US index quickly downwards boosted the rise of zinc in Shanghai, but based on the fundamentals of zinc, overseas zinc demand is still weak, within a day or running around $2370 to $2420 per ton. Overnight, Shanghai zinc stopped falling and picked up again, and under the influence of overnight macro emotion, Shanghai zinc returned to run near the Wanjiu pass. However, the monthly difference between 087, 08 and 09 contracts continued to narrow, indicating that Shanghai zinc demand is in a state of fatigue. Shanghai zinc may run around 188 50 yuan / ton during the day. Material 0 # domestic double swallow zinc pair 7 liters 50 90

Tin: it is expected that the lower support of Lunxi is located near the integer gate of US $18000 / ton. Last night, the center of gravity of tin in Shanghai was stable. It is estimated that the resistance above tin in Shanghai is near the 10-day moving average of 136500 yuan / ton, and the lower support is located at the integer gate of 135000 yuan / ton. Spot market, Shanghai tin main 1909 contract did not fluctuate significantly last night, the center of gravity is generally stable, today's quotation is expected to remain stable at 137,000 139500 yuan / ton.

In the process of updating.

 

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