Key Macroeconomic Indicators for Base Metal Prices (2017-2-27)

SHANGHAI, Feb. 27 (SMM) – US durable goods orders in January, pending home sales and February Dallas Fed Business activity index, eurozone February economic climate index and CCI are the focus of markets today. Base metals rose across the board last Friday, and will remain range-bound.

ISM manufacturing PMI for the US in January, new order and production index both hit the highest from November 2014. Markit’s flash manufacturing PMI for the US in January topped market expectations and final data for December, with new order and export order sub-indexes improving. This bodes well for improvement in US January durable goods orders.

US seasonally adjustment pending homes sales and February Dallas Fed Business activity index will remain strong, supporting the US dollar.

SMM Price Outlook for Base Metals on SHFE (Feb. 27, 2017)

ZEW economic climate index for the US in February underperformed January’s, but IFO Business Climate Index improved noticeably, meaning eurozone economy is recovering. But eurozone flash February CCI fell short of market expectations and January. If the final data also fell short of market expectations, the euro will weaken further. The euro is more subject to news than data at present.