Daily Report 310517 2017-05-31
Macro Economy
On the domestic front, "Finance" reported that China's central bank participants Sheng Songcheng said the market interest rate short-term sharply rose space is not large. On the whole, the current monetary policy is tightening the direction of development. We think that Sheng Songcheng's attitude is somewhat ambiguous, but we can observe the Federal Reserve after the rate hike in June after the Chinese central bank will follow up the open market operating rate to assess the true meaning of Sheng Songcheng post. The Chinese central bank open market operating rate after June 15 is important to guide the domestic interest rate movements in the short term.
 
Zinc and Lead
Monday and Tuesday LME Zinc and Lead continued narrowly fluctuation tendency. Overnight LME Zinc closed at $2630/ton. LME Lead closed at $2100/ton. LME Zinc inventory decreased 1425 tons to 332800 tons. LME Lead inventory increased 275 tons to 183175 tons. Domestically, last Friday SHFE Zinc inventory decreased to 78272 tons. Overall, global filtered Zinc still slightly in short, which bolstered Zinc price. Shanghai Zinc price continued to be strong. Focus on cross month price margin change opportunity.
 
Copper

Monday and Tuesday copper overseas section meets bolster during drop procedure. Copper price dropped near 20-days average line. LME inventory yesterday dropped 3450 tons to 315000 tons. LME actuals discount enlarged $3.25 to discount $22.75. Overall, global macro economy recovery is mild. Recently macro events gather, and risk hedging emotion increases. Consumption season ends; bolster to copper price is weak. Maintain bearish attitude in the mid-term.

 
                                                                      Dong LV (Investment Certificate NO. TZ008452)