SHANGHAI, Sept 11 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
Last night
The US dollar weakened against the pound, which was buoyed by hopes that a Brexit deal could be reached in six to eight weeks. This timeline estimate came from European Union chief negotiator Michel Barnier at a conference in Slovenia. The US dollar dipped 0.36% to settle at 95.08.
Base metals closed mixed. LME aluminium grew 0.68%, nickel jumped 0.61%, while lead slumped 2.02%, zinc fell 1.69%, and tin lost 0.27%. SHFE nickel gained 0.58%, tin increased 0.53%, copper went flat, while zinc slid 1.18%, and lead closed 0.13% lower.
China's consumer price index (CPI), a main gauge of inflation, rose 2.3% year on year in August, compared with 2.1% for July, the National Bureau of Statistics (NBS) said on Monday. This marked the fastest growth since February. On a yearly basis, CPI increased 0.7%, up from a gain of 0.3% in July.
Core CPI, which leaves out volatile prices of food and energy, rose 2% in August, compared with 1.9% in July.
Food prices rose 1.7% year on year, contributing to a 0.33-percentage-point increase in the overall CPI increase.
The producer price index (PPI), a gauge of industrial profitability, rose 4.1% in August from a year earlier, compared with a 4.6% increase in July.
The carryover effect contributed 3 percentage points to the 4.1-percent year-on-year PPI growth, and new factors that push up prices contributed 1.1 percentage points, said NBS statistician Sheng Guoqing.
On a monthly basis, PPI edged up 0.4% in August, picking up from 0.1% in July.
Of all industrial sectors, producer prices in oil and natural gas exploration surged 39.6% from the previous year, with oil, coal and other fuel production at 22.7% and ferrous metal processing increasing 9.5%. The pace of increases all decelerated from July.
Eurozone investor confidence deteriorated unexpectedly in September, survey data from think tank Sentix showed on Monday.
The investor sentiment index fell to 12 this month from 14.7 in August. The score was forecasted at 14.6.
Day ahead
Market participants should monitor data including China’s social financing and its M2 money supply for August, the eurozone ZEW economic confidence in September, as well as the US warehouse inventories for July.
