Favorable macro policies boost market confidence; SHFE zinc fluctuates at highs [SMM Zinc Morning Comment]

SMM, Sep 27: Overnight, U.S. initial jobless claims fell to a four-month low; foreign media reported that the Israeli Prime Minister rejected a 21-day ceasefire proposal with Lebanon; OPEC+ is reportedly continuing its plan to increase production in December; Yellen stated that intervening in the dollar is conceivable in extreme cases; a major meeting was held by China's central government to analyze and study the current economic situation and economic work; China's central bank announced the need to accelerate the introduction of financial incremental policy measures; the first "central enterprise" long-term capital market entry document was released; regulators strengthened supervision of brokerage "stock recommendation software."
Overnight, LME zinc opened at $2,988/mt, initially fluctuating narrowly around the daily average line and dipping to $2,984/mt. In the afternoon, LME zinc rose above the daily average line, reaching a high of $3,106/mt, and ended with a narrow fluctuation around $3,095/mt, closing up at $3,094/mt, an increase of $105.5/mt, or 3.53%. Trading volume increased to 112,000 lots, and open interest decreased by 1,242 lots to 241,000 lots. Overnight, LME zinc recorded a large bullish candlestick, supported by various moving averages below. LME social inventory decreased by 175 mt to 255,050 mt, a reduction of 0.07%.
Currently, U.S. initial jobless claims have fallen to a four-month low, coupled with China's fiscal stimulus measures, it is expected that LME zinc will fluctuate upward today. Future attention can be paid to the U.S. August core PCE price index monthly rate and other data.
Overnight, the most-traded SHFE zinc 2411 contract opened with a gap at 24,970 yuan/mt, initially fluctuating around the daily average line with a range of 280 yuan/mt, dipping to 24,860 yuan/mt. Subsequently, bulls increased positions, pushing SHFE zinc to a high of 25,155 yuan/mt. By the end of the session, bulls reduced positions slightly, and it closed up at 25,025 yuan/mt, an increase of 315 yuan/mt, or 1.27%. Trading volume decreased to 135,000 lots, and open interest increased by 4,659 lots to 117,000 lots. Overnight, SHFE zinc recorded a four-day winning streak, with the daily K-line moving upward, supported by various moving averages below. Currently, favorable macro policies continue to boost market confidence, coupled with a slight decrease in social inventory, providing support for zinc prices. It is expected that SHFE zinc will continue to fluctuate at highs today.