Key Macroeconomic Indicators for Base Metal Prices (2015-8-26)

SHANGHAI, Aug. 26 (SMM) – The PBOC lowered deposit reserve ratio and lending and deposit interest rate by 0.5 and 0.25 percentage point respectively yesterday, the fifth interest rate cut since November last year and the third deposit reserve ratio cut this year.

The PBOC raised central parity of the yuan against the US dollar by over 100, allowing the yuan to depreciate further.

With the plunging China’s A-share market, margins for non-hedging positions on the IF 300, IH 50 and IC 500 will be raised from 10% to 20%.

Market uncertainty grew as to when the Fed will raise interest rate. US pending home sales were 507,000 units in July, up 5.4% MoM, slightly lower than the 5.8% expected. Conference Board’s CCI in August was 101.5.

The US dollar index rose 0.77%. NYMEX crude oil prices increased 3.1% to USD 44.5/bbl. US stocks surged initially but then fell. European stocks grew across the board. LME base metals prices climbed.