Macro Roundup (Mar 21)

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

Last night

LME base metals, except for aluminium, traded higher on Wednesday. Zinc climbed 2.24%, nickel advanced 1.41%, copper rose 0.53%, lead increased by 0.49%, and tin gained 0.26%.

SHFE base metals, except for copper and lead, ticked up overnight. Zinc grew 0.85%, aluminium crept 0.15%, nickel and lead inched up 0.1%.

The US dollar fell sharply against a basket of major currencies on Wednesday, after the Federal Reserve held US interest rates steady and its policymakers abandoned projections for further rate hikes this year as the central bank flagged an expected slowdown in the economy.

The Fed on Wednesday downgraded its economic forecast and said it plans to end its program of reducing the bonds it holds on its balance sheet in six months.

The greenback clung to gains against sterling as investors remained wary over the prospects for the British currency as Prime Minister Theresa May requested a short delay to Brexit after her failure to get a divorce deal ratified.

US crude stockpiles dropped by 9.59 million barrels in the week through March 15, the Energy Information Administration (EIA) said on Wednesday. That compared with an estimate for a buildup of 602,400 barrels.

For the same week, US gasoline inventories fell by 4.59 million barrels, much more than the expected decline of 2.65 million barrels. Stocks of distillates, including diesel and heating oil, dropped by 4.13 million barrels, also much bigger than the expected drawdown of 1.31 million barrels.

Day ahead

Economic data slated for release today include US weekly unemployment claims and the Eurozone’s consumer confidence index for March.

The Bank of England will announce its interest rate decision today.