Macro Roundup (Aug 19)

SHANGHAI, Aug 19 (SMM) – This is a roundup of global macroeconomic news last weekend and what is expected today.

Last weekend

The US dollar lost gains from earlier trades and ended roughly flat on last Friday, after worries tied to trade tensions and a Federal Reserve rate cut weighed on consumer sentiment.

Also pulling the dollar lower was the University of Michigan consumer sentiment index, which fell to 92.1 in August, the lowest indicator readout since the start of 2019, according to data released Friday.

LME base metals closed mixed while SHFE metals fell for the most part. LME tin slid 2.2%, led dropped 1.2%, while nickel edged higher, zinc grew 0.2%, copper rose 0.3%, and aluminium gained 0.6%. SHFE tin lost 1.1%, lead shed 0.3%, aluminium and zinc slipped 0.2%, while copper grew 0.1%, and nickel advanced 0.3%. 

“Monetary and trade policies have heightened consumer uncertainty — but not pessimism — about their future financial prospects,” wrote Richard Curtin, chief economist of the University of Michigan’s Survey of Consumers.

“Consumers strongly reacted to the proposed September increase in tariffs on Chinese imports, spontaneously cited by 33% of all consumers in early August, barely below the recent peak of 37%,” he wrote.

US housing starts fell for a third straight month in July amid a steep decline in the construction of multi-family housing units, but a jump in permits to a seven-month high offered hope for the struggling housing market.

Housing starts dropped 4% to a seasonally adjusted annual rate of 1.191 million units last month, the Commerce Department said on last Friday. Data for June was revised down to show homebuilding falling to a pace of 1.241 million units, instead of dropping to a rate of 1.253 million units as previously reported.

Day ahead

The eurozone will release data on its consumer price index (CPI) for July.