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China stainless steel factory

The main base metals mostly declined in the overnight session, while Shanghai lead continued to strengthen, breaking previous highs.

On Wednesday evening, most of the main base metals futures contracts on the Shanghai Futures Exchange fell. Shanghai copper dropped by 0.52% to 78,180 yuan/ton, Shanghai aluminum fell by 0.35% to 19,720 yuan/ton, Shanghai zinc decreased by 1.60% to 23,630 yuan/ton, Shanghai lead rose by 0.28% to 19,860 yuan/ton, Shanghai nickel dropped by 1.80% to 130,320 yuan/ton, Shanghai tin decreased by 1.96% to 267,670 yuan/ton, and stainless steel fell by 0.47% to 13,800 yuan/ton.

In the US stock market, the Dow Jones rose by 0.59%, the S&P 500 index fell by 1.39%, and the Nasdaq dropped by 2.77%.

In the European stock market, the STOXX Europe 600 index closed down by 0.48%, the German DAX 30 index closed down by 0.44%, the French CAC 40 index closed down by 0.12%, and the UK FTSE 100 index closed up by 0.28%.

In the Chinese stock market, the Shanghai Composite Index fell by 0.45%, the Shenzhen Component Index fell by 0.47%, and the ChiNext Index rose by 0.01%.

[Federal Reserve Governor Waller: The Fed may cut interest rates soon, steady progress in reducing inflation]

Federal Reserve Governor Christopher Waller hinted on Wednesday that as long as there are no major surprises in inflation and employment, the Fed will soon cut interest rates. Waller stated at a meeting, “I believe the current data aligns with the expectation of a soft landing, and I will be looking for data in the coming months to support this view. Therefore, although I do not think we have reached the ultimate goal yet, I do believe we are approaching the point where there is a reason to lower policy rates.”

[Federal Reserve New York President Williams: If inflation continues to slow, interest rates will be cut in the coming months]

The Federal Reserve’s third-highest-ranking official, New York Fed President John Williams, indicated that there are signs that the US labor market is cooling, and the inflation data for the past three months is “increasingly close to the deflationary trend we want.” Williams hinted that the Fed is nearing a rate cut but is not yet ready to do so. Even if one or two officials support it, the Fed will not cut rates in July; if the economy is stable, the Fed may consider a rate cut in September.

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