[Base Metal] Key Macroeconomic Indicators for Base Metal Prices (2015-7-27)

SHANGHAI, Jul. 27 (SMM) – China’s flash July manufacturing PMI was 48.2, falling to a 15-month low and remaining below 50 for the fifth straight month, according to Caixin.com. China’s power consumption in the first half of the year rose 1.3% YoY, its slowest growth since 1980, with power generation volume and the average number of hours both down. This suggest great pressure for Chinese economy and fueled market concerns over China’s demand for commodity, weighing down commodity prices.

Manufacturing and service PMIs from eurozone, France and Germany all fell short of market expectations. The EUR:USD has depreciated over 9% since the start of the year due to Quantitative Easing and chronic Greek crisis.

US Commerce Department reports the annualized number of new home sales in June was 482,000 units, its lowest since November 2014, and falling short of market expectations. The Fed released by mistake that it had expected to raise interest rates by 25 basis points before the year’s end. This bolstered the US dollar index and weighed on base metals.

Major global stocks markets dropped across the board; the US dollar index rose 0.04%; the EUR:USD fell 0.01%; LME base metals prices were mixed, with LME copper, aluminum and tin prices rising whilst LME lead, zinc and nickel prices down.