Macro Roundup (May 11)

SHANGHAI, May 11 (SMM) – This is a roundup of global macroeconomic news over the weekend and what is expected in the day ahead.

With rising hopes for global economy reopening, stocks in Asia traded higher on Monday morning, following gains on Wall Street.

The S&P 500 gained more than 1% on Thursday and Friday, leading to the broader-market average’s first weekly advance in three weeks.

The US dollar index, which tracks the greenback against a basket of its peers, remained below the 100 mark on Monday morning.

Oil prices, meanwhile, fell, as a persistent glut continued to weigh on prices and the coronavirus pandemic eroded global oil demand even as some governments began to ease lockdowns.

The number of active US rigs drilling for oil dropped by 33 to 292 last week, according to data from Baker Hughes released Friday. The oil-rig count has now fallen for eight weeks in a row, implying upcoming declines in the country’s crude output. The total active US rig count, meanwhile, also fell by 34 to 374, according to Baker Hughes.

LME base metals, except for aluminium, were higher as trading resumed from the bank holiday on Friday. All LME base metals strengthened last week, with copper posting the first weekly gain in three and zinc seeing the best week since October 2019.

On Friday night, base metals, except for tin and lead, on the SHFE cruised higher. Aluminium gained 0.4%, copper and nickel rose more than 0.3%, and zinc advanced 0.2%, while tin dipped nearly 0.1% and lead dropped close to 0.8%.

Data published on Friday showed US job losses in April hit 20.5 million, compared to expectations of 22 million. The unemployment rate was 14.7%, lower than the market forecast of 16%.

US Treasury Secretary Mnuchin warned that the jobless numbers could “get worse before they get better.” He said Sunday that the unemployment rate stateside may have already reached 25% as the administration seeks to reopen the country’s economy.

On the coronavirus front, UK Prime Minister Boris Johnson outlined over the weekend a “conditional plan” to slowly reopen society and the economy.

Spain registered its lowest daily number of coronavirus deaths on Sunday since mid-March and half of its population prepared for an easing of one of Europe's strictest lockdowns, although not yet the residents of cities such as Madrid and Barcelona.

US Vice President Mike Pence will distance himself for the next couple of days after one of his aides tested positive for coronavirus. The precautions don’t amount to self-isolation because there are no restrictions on his schedule.