Macro Roundup (Sep 27)

SHANGHAI, Sep 27 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar extended its gain on Thursday, with the index that measures the greenback against a basket of other currencies nearing a two-year high hit at the start of this month.

Increased political tensions including the opening of an impeachment inquiry into US President Donald Trump and ongoing uncertainty linked to Britain’s divorce from the European Union, as well as mixed signals on a trade deal kept the greenback resilient.

LME base metals, except for zinc, closed lower on Thursday. Copper led the way with a decline of 1.2%. Tin fell 1%, aluminium slipped 0.8%, lead shed 0.7%, and nickel dipped 0.3%.

The SHFE complex saw no better performance. Aluminium declined 1.1%, copper and tin fell 0.8%, zinc lost 0.6%, lead slipped 0.3%, and nickel edged down 0.04%.

On the data front, German Gfk consumer confidence index rose for the first time in 2019 to come in at 9.9 for October following a reading of 9.7 for September, according to the survey released on Thursday.

US gross domestic product (GDP) increased at an unrevised annual rate of 2% in the April to June quarter, slowing from a pace of 3.1% in the January-March quarter, the government said Thursday.

The latest data from the government, however, showed that US business investment contracted more sharply than previously estimated in the second quarter and corporate profit growth was tepid.

Day ahead

China will release its industrial profits for August, while the US will publish its inflation data, durable goods orders for August as well as consumer sentiment index for September.

The eurozone’s September consumer confidence index and economic climate index are also due today.