Macro sentiment turned bearish, SHFE zinc shifted downward [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,085.5/mt, an intraday high. Later, LME zinc fluctuated widely along the daily moving average. After Trump's victory, due to concerns about demand, bulls reduced their positions, and LME zinc fluctuated downward, hitting a low of $2,960/mt at the end of the session, finally closing down at $2,966/mt, a drop of $144.5/mt, or 4.65%. Trading volume increased to 14,908 lots, and open interest decreased by 3,516 lots to 247,000 lots. Overnight, LME zinc recorded a bearish candlestick, with LME inventory decreasing by 350 mt to 245,325 mt, a decline of 0.14%. Due to expectations that Trump's post-election immigration, tax, and trade policies will stimulate higher growth and inflation in the US, the US dollar index surged to a four-month high, causing a broad decline in base metals, with LME zinc falling sharply. LME zinc is expected to fluctuate today.

Overnight, the most-traded SHFE zinc 2412 contract opened at 24,665 yuan/mt. At the beginning of the session, bulls reduced their positions, causing SHFE zinc to briefly dip to 24,605 yuan/mt. Later, SHFE zinc's focus shifted upward to around 24,725 yuan/mt. Subsequently, bears reduced their positions, and SHFE zinc's focus moved upward, reaching a high of 24,880 yuan/mt at the end of the session. SHFE zinc finally closed down at 24,800 yuan/mt, a drop of 155 yuan/mt, or 0.62%. Trading volume decreased to 86,425 lots, and open interest decreased by 222 lots to 102,000 lots. Overnight, SHFE zinc recorded a bullish candlestick. Macro sentiment resurfaced with Trump's victory, and domestic concerns about subsequent US policies suppressing exports and demand led to a broad decline in base metals, with SHFE zinc's focus shifting downward. SHFE zinc is expected to fluctuate mainly today.