Key Macroeconomic Indicators for Base Metal Prices

Trading hours on base metals market will shorten this week, because of the Boxing Day in the UK and New Year holiday. Market will digest a series of economic data this week.

SHANGHAI, Dec. 28 (SMM) – Trading hours on base metals market will shorten this week, because of the Boxing Day in the UK and New Year holiday. Market will digest a series of economic data this week.  

The US will release December Conference Board’s December consumer confidence index and weekly jobless claims. Of the three sub-indexes of the consumer confidence index, two were positive and one was negative, which does not match improving labor market. U rate hike is expected to dampen willingness to spend. US jobless claims dropped to a decade low of 267,000 last week, but labor participation was low. 

China’s official manufacturing PMI for December is due for release on Friday, but global financial market will be closed that day. Market sentiment over Chinese economy has turned from pessimistic to not overly pessimistic. As such, even if China’s official manufacturing PMI turns out to be negative, it will have little impact on post-holiday market. China’s official manufacturing PMI is predicted at 49.7-50.0 in December. 

Global crude oil market has showed slight improvement. The US approved crude oil exports. The price spread between US and Brent oil will help crude oil prices rebound and thus boost sentiment in commodity market. 

Courtesy : metal.com