Macro Roundup (Mar 15)

SHANGHAI, Mar 15 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

As the euro dipped, the US dollar index rebounded and hovered around 89.7 overnight while most base metals climbed up. The growing number of cancelled warrants drove LME nickel to hit a two-week high. LME and SHFE zinc dropped about 2% as inventories grew.

China’s total value added across industrial enterprises in January and February rose by 7.2% year on year. Total investment in fixed assets (excluding rural households) in January and February rose 7.9% on a yearly basis and the total retail sales of consumer goods in January and February jumped by 9.7% from the same period last year.

The US producer price index (PPI) in February increased more than expected as cost of services grew. The main PPI rose 0.2% month on month, and increased 2.8% year on year. The core PPI, excluding food, energy and trade services, went up by 0.4% month on month, and rose 2.7% year on year. This is the largest growth since August 2014.

US retail sales fell for three consecutive months in February as households cut back on purchases of motor vehicles and other big-ticket items. This hinted at a slowdown of economic growth in the first quarter.

Inventories of US crude oil during the week that ended March 9 rose by 5.02 million barrels, according to data from the Energy Information Administration. Gasoline inventories shrank by 6.27 million barrels and refined oil inventories fell 4.36 million barrels.

Day ahead

Data on US import prices and its weekly unemployment claims are the two key factors to watch today.

The US dollar inched up and is likely to remain rangebound in the short term.

Base metals gained for the most part, and are seen trading rangebound in the short term.

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