Favorable macro policies boost market sentiment, SHFE zinc fluctuates upward [SMM Zinc Morning Comment]

SMM, Sep 25: Overnight, US Fed Governor Bowman took a hawkish stance; US consumer confidence saw its largest drop in over three years; Hezbollah requested Iran to join the fight against Israel; the Bank of Japan's governor reinforced signals of no rush to raise rates; PBOC introduced a new policy "combo"; the state plans to increase core tier-one capital for six large commercial banks; the Financial Regulatory Administration emphasized the importance of loan renewals and improving financial services for small and micro enterprises.
Overnight, LME zinc opened at $2,886/mt, initially dipped to a low of $2,879/mt, then fluctuated upward above the daily average. During European trading, a tug-of-war between longs and shorts led LME zinc slightly below the daily average, but with increased long positions, it quickly rose to around $2,986/mt. In the night session, LME zinc maintained its upward trend, peaking at $3,014/mt, and closed up at $3,010.5/mt, a rise of $125.5/mt or 4.35%. Trading volume increased to 84,146 lots, and open interest rose by 1,802 lots to 239,000 lots. Overnight, LME zinc recorded a large bullish candlestick, with the 20-day moving average providing support. LME social inventory decreased by 1,100 mt to 256,950 mt, a reduction of 0.43%. The US September Conference Board Consumer Confidence Index unexpectedly fell by 6.9 points to 98.7, below expectations and marking the largest drop in three years. However, as China is a major metal consumer, recent favorable policies have boosted the economy, and LME zinc is expected to fluctuate upward today.
Overnight, the most-traded SHFE zinc 2411 contract opened with a gap at 24,150 yuan/mt, initially dipped to 24,090 yuan/mt, then with increased long positions, it rose above the daily average to a high of 24,520 yuan/mt. By the end of the session, profit-taking by longs led SHFE zinc to slightly decline to 24,470 yuan/mt, fluctuating rangebound, and it closed up at 24,475 yuan/mt, a rise of 465 yuan/mt or 1.94%. Trading volume decreased to 98,500 lots, and open interest increased by 4,365 lots to 113,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the daily K-line moving upward, the upper Bollinger Band forming resistance, and various moving averages providing support below. The PBOC announced a series of favorable macro policies, including rate cuts, RRR cuts, reductions in existing mortgage rates, and lower minimum down payments for second homes, boosting market sentiment. SHFE zinc is expected to fluctuate upward today.