Macro Roundup (May 21)

SHANGHAI, May 21 (SMM) – This is a roundup of global macroeconomic news last weekend and what is expected today.

Last weekend

As the US treasury yield climbed, the US dollar index rose 1.2% to close at 93.66 and registered on Friday a new high at 93.83 since December last year.

Base metals trading was rather weak and mixed on Friday. LME aluminium slid over 1% to a two-week low on smaller-than-expected supply impact from the US sanctions on Rusal. LME copper registered the first drop in three weeks due to the rising greenback, the uncertain outlook for the global economy as well as the increase in LME copper inventories on Friday. LME lead dropped over 1%, while LME zinc, tin and nickel inched up. SHFE copper, aluminium and nickel edged down but zinc, lead and tin rose.

The eurozone recorded a seasonally adjusted trade surplus of 21.2 billion euros with the rest of the world in March, up from 20.9 billion euros in February.

Before seasonal adjustment, the trade surplus in goods with the rest of the world stood at 26.9 billion euros in March and 18.9 billion euros in February.

The eurozone’s imports and exports both declined in March, a growing indication that trade tension may be reining in global commerce.

The number of active US rigs for oil remained unchanged at 844 units over the week ended May 18 with natural gas rigs up 1 unit to 200 units, according to data from Baker Hughes. This brought the overall active rigs up 1 unit to 1,046 units.

Day ahead

The US dollar is likely to extend its gains today as the US and China put the trade war “on hold”, according to US Treasury secretary Steven Mnuchin.

base metals are expected to continue their weak performance, suppressed by the strong greenback.

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