Last Friday, the U.S. non-farm payrolls increased by 150,000 in October after seasonally adjustment, the smallest increase since June. Market expectations were for 180,000. The total number of new jobs in August and September was 101,000 lower than before the revision. The monthly unemployment rate recorded 3.9%, the highest level since January 2022, and market expectations were 3.8%. After the non-farm data was released, federal funds futures prices showed that the possibility of the Federal Reserve raising interest rates by January next year dropped to less than 20%. Swap market prices show that the Federal Reserve's first interest rate cut is expected to be brought forward to June next year, compared with July next year. Atlanta Fed President Bostic was satisfied with the non-farm payrolls data released on Friday and may support maintaining the current interest rate level for about 8-10 months. Minneapolis Fed President Neel Kashkari: While the slowdown in hiring is good news for the Fed, it doesn’t want to overreact to one month’s data. Richmond Fed President Barkin: Views on whether to raise interest rates again will depend more on the inflation report. Former U.S. Treasury Secretary Summers also warned investors not to rush to declare that the Fed's work is done. Vice Minister of Commerce Sheng Qiuping hosted a roundtable meeting for foreign-invested enterprises in Shanghai and mentioned that restrictions on foreign investment access in the manufacturing sector will be completely lifted.
LME zinc opened at $2471.5/mt last Friday evening and closed up $35/mt or 1.43% at $2515.5/mt. Trading volume decreased to 6298 lots, and open interest increased by 347 lots to 200,000 lots. LME zinc inventory shed by 3625 mt to 78575 mt. The U.S. non-farm payrolls increased by 150,000 in October after seasonally adjustment, the smallest increase since June, increasing market expectations for the end of the Federal Reserve's interest rate hikes. The U.S. dollar fell to recent lows.
The most traded SHFE 2312 opened lower at 21440 yuan/mt and closed at 21400 yuan/mt last Friday evening, down 20 yuan/mt or 0.09%. The trading volume was down to 47767 lots, and open interest added 1071 lots to 86775 lots. The market's continuous poor trading lowered the operating rate of the zinc downstream sector.
