July 2016 cable raw materials (rubber) monthly report

1.
Macroeconomic news

1.
According to the minutes of the Fed's June FOMC meeting, officials pointed to increasing uncertainty in the US labor market and low financial stability threatening the outlook
.
The Fed believes that it should cautiously wait for more data and Brexit before
raising interest rates.
Fed officials are widely divided
on how to raise interest rates, the economic outlook, inflation and so on.
The sluggish non-farm payrolls data in May was another important reason for
the Fed's inaction in June.
The US added 38,000 non-farm payrolls in May, well below market expectations of 160,000, which worried the Fed and therefore believed that it should act cautiously
.

2.
The uncertainty over the details of Brexit has caused more severe market volatility
.
GBP/USD fell 4% intraday, refreshing a 31-year low; European stocks extended losses; The UK 10-year bond yield fell below 1% for the first time in history, and the Spanish 10-year bond yield fell below the Italian government bond during the same period; USD/JPY fell more than 0.
4%.

European bank stocks have fallen the most in history in the past two days, and the collapse for two consecutive days has caused the shares of the three banks, Royal Bank of Scotland, Barclays and Lloyds, to plummet by three or four percent
after the referendum.

3.
According to media reports, the scale of Japan's upcoming economic stimulus package may be as high as 30 trillion yen
.
Some observers believe the size of the government's new stimulus program could climb to between $20 trillion and 30 trillion yen ($189 billion to $283 billion).

This could reduce pressure on the Bank of Japan to ease monetary policy further at this
month's interest rate meeting.

China's service PMI in April and June was 52.
7, up 1.
5 from the previous month, ending two consecutive months of decline and hitting an 11-month high
.
Zhong Zhengsheng, head of Monita Macro Research, said that all sub-items have improved, among which the new business index is the highest since July 2015, effectively driving the growth rate
of the overall service industry.
According to the survey, the growth rate of business activities in the service industry rebounded due to the increase in new business, and the total amount of new business in the service industry rose further, the largest
growth rate since July last year.
Some respondents said that during the survey period, new projects were launched and customer demand became stronger, which led to an increase
in sales.

5.
Data released by the US Department of Commerce on July 29 showed that the annualized preliminary growth rate of US GDP in the second quarter was 1.
2%, significantly lower than the expected value of 2.
5%, and the previous value was revised from 1.
1% to 0.
8%.

Corporate inventories fell by $8.
1 billion in the second quarter, the first decline
since the third quarter of 2011.
Household consumption was a bright spot in the quarter, up 4.
2% annualized month-on-month, the biggest increase since the end of 2014
.