Main Economic Events & LME Today
Wednesday, May the 10th deserves to be nominated for one of the most tense days regarding this week. So much going on in financial markets, being pulled and inspired by main political events which are causing a little earthquakes all along the global scene. Will euro come to its 6-month highs lifted by Mario Draghi, and which way will the release of James Comey affect U.S. market… And what is happening with London Metal Excchange Prices today, Let’s see:
Main Economic Events Today:
- China Consumer Price Index(CPI) YoY rose to actual 1.2% (1.1% forecast)
- ECB President Draghi Speaks
- U.S. Crude Oil Inventories came to actual -0.930M, while expected was -2.333M
- New Zealand Interest Rate Decision is at actual 1.75%, same as expected
- Reserve Bank of NZ Rate Statement (the outcome of factors on interest rates..)
Top 5 Things In Wednesday’s Market
inspired by http://www.investing.com
- Trump dismissed the FBI director James Comey; It was a very shocking move for Washington (and this really weighs on risk appetite)
- Global stocks mixed as Comey’s termination HIT western markets
- Oil JUMPS 1% on large inventory draw
- Disney set to weigh on Dow, Apple pulls back
- Mario Draghi might help to lift euro back to 6-month highs
LME Base Metal Prices
Dropped again, across the board of this morning. Coming after short term of recuperation at yesterday’s closing hour.
Following the publication of further unimpressive data, this time from China, copper has fallen below $5,500 per tonne and nickel is back below $9,200 barrier.
While the Chinese CPI for April at 1.2% y-o-y was better than 0.9% in the previous month, its PPI at 6.4% was below the previous figure of 7.6% and the expected 6.7%.
”Copper prices have lost upward momentum since mid-February and more recently they have gained downward momentum.” (Metal Bulletin)
Copper goes below $5,500/t
Firstly, three-month copper price fell $24 per tonne to trade recently at $5,488 per tonne. Secondly, copper stocks fell a net 3,625 tonnes to 339,200 tonnes. Also the Inventories started to decline on Monday this week, after they rose more than 100,000 tonnes last week.
Based on the reports of the Chinese trade balance, and their imports, Copper prices came under pressure after Monday. When data showed total copper imports into the nation fell to their lowest since October 2016.
Following, the expected second expansion phase at Polish miner KGHM’s Sierra Gorda copper project in Chile, IS CANCELED, the company announced on Monday.
Other base metals
Speaking about Aluminium prices, the three-month price fell $5.50 to $1,865 per tonne. Stocks fell 7,225 tonnes to 1,570,575 tonnes.
“Aluminium looks a tad better but really needs to stay above $1,860 on the downside.” (FastMarkets)
Observing the Nickel, it fell $55 per tonne to $9,160 per tonne. It is hardly struggling to recover last week’s dropdown of more than $500 per tonne…
“Nickel prices will might be under pressure on weaker demand. With steady nickel trade flows from Indonesia, and some stainless steel plants starting from late May.” Nickel stocks rose 660 tonnes to 381,378 tonnes.
Noteworthy, The three-month tin price fell $55 to $19,660 per tonne, with inventories unchanged at 2,290 tonnes.
Currencies & data
The Brent crude oil spot price was up 0.36% at $49.13 per barrel. Later, the US dollar index was effectively unchanged at 99.43. In equities, that shoes the UK FTSE 100 was down 7.17 at 7,335.04. But the power of dollar these days is not to be neglected.
Speaking about Europe, French and Italian industrial production both bid better than expectations. Especially the French trade deficit, which fell to a €5.4 billion. It bet the forecast.
US April export and import prices, crude oil stocks and the Federal budget balance are due later today. Mr Donald Trump’s decisions are often shocking for people around him as well as for the global market participants. But we can only watch and testify the outcomes by ourselves.
Copper inventories [on the LME] have fallen over 16%. Also, zinc is down 9%, while lead 8% . Finishing with aluminium failure for 6%. Recent supply disruptions maybe had impact on this.”