SMM

SMM, sep 18: Overnight, multiple pager explosions occurred in Lebanon, with reports suggesting that Mossad had planted explosives; US August retail sales exceeded expectations, with the previous value slightly revised upward; sources indicated that the US would seek to replenish 6 million barrels of strategic reserves taking advantage of relatively low oil prices; experts suggested that 5% might be the current lower limit for the reserve requirement ratio; During the Mid-Autumn Festival holiday, the domestic market was closed, while overseas LME zinc opened at $2,900/mt. Boosted by expectations of a US Fed rate cut, LME zinc fluctuated upward, reaching a high of $2,977.5/mt during European trading hours yesterday. Subsequently, a significant increase of 12,950 mt in LME zinc inventory, combined with unexpected growth in US retail sales, led to a decrease in expectations for a substantial US Fed rate cut, supporting the dollar and causing non-ferrous metals to decline. LME zinc's center of gravity shifted downward to $2,920/mt, ultimately closing down at $2,924/mt, a drop of $21/mt or 0.71%. Trading volume increased to 11,710 lots, while open interest decreased by 1,175 lots to 241,000 lots. Overnight, LME zinc recorded a long upper shadow bearish candlestick, with various moving averages below providing support. Overnight, LME inventory increased by 12,950 mt to 247,100 mt, an increase of 5.53%, indicating a significant rise in LME inventory. The expectation of a substantial US Fed rate cut has weakened, and attention will be focused on the upcoming US Fed rate decision.