This week we are having manufacturing data releases of China, Euro, Germany, France and U.S.
Industrial Metals get highly affected by change in manufacturing activities. China, the largest base metals consumer, is likely to show contraction for February. The index may fall to 49.4, lowest in last seven months, from previous 49.5. Slowing manufacturing activities at China could further deepen metal prices.
Euro Manufacturing PMI may expand to 54.2 while German PMI may fall to 56.4. French PMI likely to continue contraction for 4th month consecutively. U.S. Philly Fed Manufacturing Index is expected to fall this time on slowing economic progress. The index may fall by 0.2 points to 9.2 for last month.
We are expecting volatile movement in industrial metals during this week. Base metals are already in down trend and negative PMIs may further fuel bearish sentiments.