Macro Roundup (Mar 5)

SHANGHAI, Mar 5 (SMM) – This is a roundup of global macro-economic news over the weekend and what is expected today.

Last Friday night
The US dollar slid following the country’s plan to impose sweeping tariffs on steel and aluminium imports. LME zinc dropped over 1% and tin edged down slightly, while SHFE tin inched up.

Germany’s retail sales in January dropped 0.7% month on month and rose 2.3% year on year.

The eurozone’s producer price index (PPI) in January saw a slowdown in growth at 1.5% year on year due to a sharply slower growth in energy prices.

The Michigan Consumer Sentiment Index in February recorded the second highest level since 2004 at 99.7, suggesting that customers remained positive about incomes, jobs and after-tax pay. Personal tax cuts are set to be “crucial” to spur additional spending, said Richard Curtin, director of the surveys. A 2.9% rise is expected in the personal consumption expenditures (PCE) in 2018.

Oil drilling rigs in the US during the week ended March 2 registered a sixth-week rise, amounting to 800 units, the highest level since April 2015, according to data released by Baker Hughes. This boost is due to the rise in oil prices. The data also showed a two-unit gain in natural gas drilling rigs to 181 units in the US as of March 2.

Day ahead
The Caixin China services purchasing managers' index (PMI) in February, the economic indicators in the eurozone, and the US non-manufacturing PMI in February to be released tonight are three key factors to watch today.

The US dollar is expected to edge down and the base metals are to keep rangebound, after the US President Donald Trump’s declaration that “trade wars are good”.

The Caixin China services PMI in February stood at 54.7, and the manufacturing PMI in February rose to 51.6, indicating that China’s economy remains buoyant.

Eurozone retail sales data are expected to inch up, which may have a moderate influence on the euro.
 

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