COPPER:
The Commerce Department said construction spending declined 0.6% to its lowest level since June 2015 after dipping 0.1% in May. June marked the third straight month of declines in outlays.
Economists polled by Reuters had forecast construction spending increasing 0.5% in June after a previously reported 0.8% drop in May. Their June estimates were largely based on the government’s assumptions for private residential and nonresidential construction spending in the advance GDP report.
Weak nonresidential spending and a pullback in home building were credited for the drop. Our Construction MMI still increased from 66 to 67 this month, largely based on jumps in still-in-demand steel products such as rebar and H-beams. Those prices made up for steep drops elsewhere to eke out the 1.5% increase.
ALUMINIUM:
China Aluminum International Trading Co. (Chalco Trading) continued cutting aluminum prices in major markets today, it said on its WeChat.
Market expects the BOE to cut interest rate during its August meeting, and US durable goods orders are expected to fall in June. LME aluminum will remain firm between USD 1,630-1,660/mt.
ZINC:
Vedanta Resources’ refined zinc production was 101,000 tonnes during April-June, a drop of 46% year-on-year, and down 34.4% on a quarterly basis, SMM understands.
Teck Resources’ zinc concentrate output was 341,000 tonnes in the first half of this year, down 1.16% year-on-year.
LEAD:
LME lead will fall to USD 1,795-1,815/mt during Asian trading hours Thursday with firmer dollar.
NICKEL:
Another six nickel ore mining firms in Surigao are now being audited by the Department of Environment and Natural Resources according to MindaNews.
Bank Of England Massive Stimulus Announcement (GBP)
Traders are focused today on the Bank of England rate and stimulus decision. Most are expecting a massive program from the bank to try to offset the effects of the Brexit vote. Their decision will have effects across the global currency markets. Traders will then turn their focus to Friday’s US NFP report. The greenback had been on its best run of weekly gains in 1-1/2 years until last week, when the Fed disappointed investors who had hoped the U.S. central bank would clearly signal a near-term rate hike and U.S. growth data came in much weaker than expected.
BoE Meeting in Focus
The BoE meeting today will be a major key for markets as investors expect further stimulus actions by the BoE. The Bank of England is expected to cut interest rates to record low of 0.25% on Thursday.
Additionally, markets will be in focus for Mark Carney speech as possibility of reviving stimulus program in form of asset purchase come to action. The pound rose against US Dollar on morning session, trading at 1.3365.
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