Key Macroeconomic Indicators for Base Metal Prices (2017-5-18)

SHANGHAI, May 18 (SMM) – The number of US initial jobless claims last week, the Philadelphia Fed's manufacturing index in May and UK’s seasonally adjusted retail sales in April are due for release today. Base metals mostly closed with gains overnight, but diverged, and are expected to consolidate at highs today.

UK’s seasonally adjusted retail sales in March fell 1.8%, the lowest for the year. The data for April are expected to rebound noticeably. But if the data turn out to remain in negative territory, the Bank of England (BOE) may be cautious toward interest rate hike issue.

SMM Price Outlook for Base Metals on SHFE (May 18, 2017)

The number of US initial jobless claims last week may remain low, with market focus limited. New York Fed’s manufacturing index in May fell sharply. Should Philadelphia Fed’s manufacturing index fell remarkably in May, it presages US May manufacturing PMI may fall, which will accelerate drop in the US dollar.

European Central Bank Chair Mario Draghi’s statement this evening will be eyed. He has been optimistic toward eurozone economy recently, but cautious toward tightening policy.