Macro Roundup (Apr 13)

SHANGHAI, Apr 13 (SMM) – This is a roundup of global macroeconomic news last weekend and what is expected in the day ahead.

The US dollar declined last Friday and was on course for a weekly loss as safe-haven demand reduced on the US Federal Reserve’s massive new lending program for small companies and signs of a slowdown in the COVID-19 infections.

The dollar index, which tracks the greenback against a basket of other currencies, dipped 0.05% to 99.495.

The pound rose against the dollar and the euro as markets breathed a sigh of relief after British Prime Minister Boris Johnson left intensive care following his hospitalisation for COVID-19 symptoms.

The OPEC+ group led by Saudi Arabia and Russia finalised plans Sunday to steeply cut oil production by a combined 9.7 million barrels per day. This followed a tentative agreement Thursday that was temporarily derailed by Mexico's opposition to its level of allotted cuts, as well a wider G20 energy ministers meeting Friday and talks that stretched into the weekend.

SHFE nonferrous metals closed higher across the board on Friday, with tin leading the gains and adding 3.44%. The LME was closed on Friday and will remain shut on April 13 on account of Easter Monday.

China's consumer inflation eased in March on lower food prices as economic activities including transport and logistics gradually recovered after the epidemic was effectively contained in the country, official data showed Friday.

China's consumer price index (CPI), the main gauge of inflation, grew 4.3% year on year last month, moderating from the 5.2% gain in February, according to data from the National Bureau of Statistics.
On a monthly basis, consumer prices fell 1.2%. Food prices, which account for nearly one-third of the weighting in China's CPI, went down 3.8% last month.

China's Q1 financial data came in better than expected, supported by huge rebounds in new loans and social financing in March on the back of the recovery to policy adjustments that helped real economy get back on track.

New yuan-denominated loans topped 2.8 trillion yuan or $400 billion in March, a substantial increase both on month and on year. 

The broad money supply M2 that covers cash in circulation and deposits rose 10.1%, the fastest pace in about two years. The increase mainly came from savings by households and companies. 

The US CPI fell 0.4% in March, the largest monthly decline in five years, as Americans stopped travelling and the cost of gasoline, airfares and hotel rooms plummeted, showed data from the Labour Department.

“The March consumer price report underscores that the fallout from the coronavirus has had a large disinflationary effect on prices due to the large demand shock, plunge in oil prices, and stronger dollar,” said Gregory Daco, chief US economist at Oxford Economics.