SHANGHAI, Jul. 16 (SMM) – Major economic indicators released overnight were positive. Fed Chairwoman Janet Yellen expressed they will likely raise interest rate this year, boosting the US dollar index. US industry output was up 0.3% MoM in June, higher than the 0.1% growth expected. June PPI in the US also rose 0.4%, near a new high over the last three years. The Beige Book revealed US economic activities continued to expand during mid-May and June. Janet Yellen expressed her confidence that the inflation rate will return to 2% in the testimony before congress.
Greek parliament passed the proposal of a batch of reforms and austerity measures as a condition precedent for further bailout from its creditors Thursday morning, meaning Greece took a step toward additional assistance from eurozone.
China’s Q2 growth rose 7% YoY, which is better than market expectations. Value added at China’s large industrials increased 6.8% YoY in June, much higher than the 6% expected by Bloomberg and the 6.1% in May. Total Government Avenue grew 13.9% YoY in June, but China’s stocks plunged further.
European and US stocks dropped, and NYMEX crude oil prices tumbled. LME aluminum, lead and zinc prices strengthened.