LME aluminium to remain under downward pressure

<p>LME aluminium will fall further to USD 1,565-1,590/mt. &nbsp;<br /><br />SHFE 1611 aluminium should move at RMB 11,800-12,000/mt, with short selling pressure eased. <br /><br />In east China&rsquo;s spot aluminium market, spot premiums of RMB 110-150/mt are expected over SHFE 1609 aluminium contract.<br /><br />Key macroeconomic indicators for base metal prices<br /><br />US August LMCI, the US IBD consumer confidence index in September and eurozone annualized Q2 GDP are slated for release today. Base metals are expected to diverge today.<br /><br />Disappointing US non-farm employment and salary figures in August bode ill for US CCI.<br /><br />Market expectations of a Fed rate hike in September decreased due to weakening non-farm payrolls in the US. US non-farm employment data are expected to be revised upwardly significantly. Should the LMCI extend gains in August, the US dollar index will receive a boost.<br /><br />The European Central Bank will announce its interest rate decision for September this Thursday. Eurozone annualized Q2 GDP is expected to be flat at Q1&rsquo;s. But as growth will likely slow, market expectations that the ECB will hike rate increase.<br /><br />National Iranian Oil Company&rsquo;s official said on Monday that the country will likely raise crude oil output to 5 million barrels per day in 2-3 years, and will increase oil output to 4 million barrels per day in the near term. This should weigh on oil prices in the near term.</p>