Macro Roundup (Mar 9)

SHANGHAI, Mar 9 (SMM) – This is a roundup of global macro-economic news last night and what is expected today.

Last night

The US dollar rebounded above 90 overnight, while base metals saw mixed trading. SHFE copper, zinc, nickel dropped over 1%, lead edged down, while aluminium and tin inched up. LME nickel slid over 2%, copper lost close to 2%, while lead and zinc fell over 1%.

China's imports in February grew 6.3% on a monthly basis but slid from last year's 36.8%. This could indicate that domestic demand is about to expand. We also expect further downward room in China's imports as the trade war looms.

There is a refocus on liquidity in the Chinese market as the central bank adjusted its priorities. 

The European Central Bank (ECB) kept interest rates unchanged and the refinancing rate at zero. It also added that asset purchases will increase if outlooks deteriorate, and that monthly asset purchases of 30 billion euros or more will continue to September 2018 before the inflation rate is adjusted. The euro fell to 1.23, from a high above 1.24.

The number of Americans filing for unemployment benefits for the first time over the week that ended March 3 stood at 231,000, lower than the 300,000 for 157 past consecutive weeks, reflecting a strong labour market.

Day ahead

Some key factors to watch today include China's February Consumer Price Index (CPI), the Producer Price Index (PPI), as well as the February US non-farm payrolls (NFP). Investors will also monitor salary data from the NFP release.

With pressure from a stronger US dollar, base metals are expected to trade rangebound with some downward room.

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