Macro Roundup (Apr 25)

SHANGHAI, Apr 25 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

As the US stock market tumbled, the US dollar index lost 0.2% overnight, after it gained 1.7% over the past five trading days, and closed at 90.79.

Most base metals fell. LME aluminium led with a loss of close to 2% among its LME peers and touched a low since April 11 at one point. LME nickel dropped over 1% but copper rose 0.79%. SHFE copper and nickel inched up slightly but the rest of SHFE metals futures dipped.

Germany’s IFO business climate index, which also includes the service sector, fell for five consecutive months and came in at 102.1 in April, compared with 103.3 in March and a previous expectation at 102.6.

"German business sentiment for a long time had been extremely elevated. What we are observing right now is a normalization, not a downturn," Klaus Wohlrabe, who compiled the monthly IFO survey, said.

The US Federal Housing Finance Agency (FHFA) home price index in February rose 0.6% from January and jumped 7.2% from a year ago.

The US new homes sales in March rose 4% from February and registered a four-month high of 694,000, better than the expected 630,000. Most of the surge was spurred by buying in the West.

The US Conference Board’s consumer confidence index increased to 128.7 in April from the revised 127 in March, higher than the expected 126.

Inventories of US crude oil during the week ended April 20 unexpectedly rose by 1.10 million barrels, according to data from the American Petroleum Institute (API). Gasoline inventories shrank by 2.72 million barrels and refined oil inventories fell by 1.91 million barrels.

Day ahead

The Energy Information Administration's (EIA) data on crude oil inventories is the key factor to watch today.

The US dollar is likely to be rangebound today as the anticipation of interest rate hikes has been priced in and as the US treasury yields rose to 3% for the first time since 2014.

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