Metals Are Trending Red Across The Board And Have Generally Risen By Over 1%. The Black Series Is Operating Strongly

Metal market

As of today's intraday closing, basic metals in the domestic market have been trending red across the board, with only Shanghai tin falling 0.23%. Shanghai copper and Shanghai lead both rose by over 2%, with Shanghai copper up 2.16% and Shanghai lead up 2.53%. Shanghai zinc and Shanghai nickel rose by over 1%, Shanghai zinc rose by 1.55%, and Shanghai nickel rose by 1.48%. Shanghai Aluminum rose by 0.5%. Aluminum oxide saw a continuous decline of 0.89%. In terms of foreign markets, the London Metal Exchange (LME) is closed for one day today due to the summer bank holiday.

Domestically speaking

According to the Ministry of Finance, since 2023, in accordance with the decision and deployment of the Central Committee of the Communist Party of China to effectively prevent and resolve local debt risks, formulate and implement a package of debt reduction plans, relevant departments, local party committees and governments at all levels have further increased their work efforts, taken more practical measures, and achieved positive results. The Ministry of Finance arranges a certain scale of refinancing government bonds within the local government debt quota space to support localities, especially high-risk areas, in resolving implicit debts, easing the pressure of concentrated repayment of maturing debts, and reducing the burden of interest expenses. According to the principle of "the province takes overall responsibility, and cities and counties make every effort to repay debts", each region is based on its own efforts, coordinates various resources, formulates debt repayment plans, and clarifies specific measures item by item. Through collaborative efforts from all parties, the overall risk of local government debt has been alleviated, and the scale of implicit debt has gradually decreased. Overall, the risk of local government debt in China is currently controllable.

Regarding the US dollar

As of 15:13, the US dollar index rose slightly by 0.02%. Federal Reserve Chairman Jerome Powell hinted at support for policy easing, stating that with rising job market risks and inflation rates approaching the Fed's 2% target, the "time has come" for the Fed to cut interest rates.

According to the CME FedWatch tool, the market has fully digested the expectation of the Federal Reserve relaxing policy next month, with a possibility of a 25 basis point rate cut of 64% and a greater possibility of a 50 basis point rate cut of about 36%.

In terms of data

Today, the initial monthly rate of durable goods orders in the United States for July and the August IFO business climate index in Germany will be released.

Regarding crude oil

As of 15:13 on August 26th, oil prices in both markets have risen, with US oil up 0.96% and Brent crude up 0.86%. The main reason is that market participants are concerned that the Gaza conflict spreading to the Middle East may disrupt the region's oil supply, and the United States is about to cut interest rates to boost the global economy and fuel demand prospects.

The US Department of Energy announced last Friday that the US has purchased nearly 2.5 million barrels of oil to help replenish its Strategic Petroleum Reserve (SPR). In 2022, the strategic petroleum reserve underwent its largest ever sales. Phillip Nova analyst Priyanka Sachdeva said that traders are currently more alert to OPEC+'s movements, and the oil producing group is planning to increase output later this year. In addition, it also stated that the current strong demand in the United States and the replenishment of strategic oil reserves can only provide the only support for oil prices, but at the same time, OPEC's supply may be surplus.