Macro Roundup (Apr 27)

Published: Apr 27, 2018 09:19 (GMT+8)
Macro Roundup

SHANGHAI, Apr 27 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar index continued to rise overnight, bolstered by strong economic data from the US as well as the 10-year treasury yield breaching the 3% threshold for the first time in four years earlier in the week.

LME aluminium jumped 1.6% following news that Oleg Deripaska plans to continue control of Russian aluminium producer Rusal. The US Treasury previously said it was mulling a cut or to lift sanctions against Rusal if Deripaska ceded control. SHFE aluminium also gained 0.56%.  

The European Central Bank (ECB) held interest rates stable on Thursday, with its main refinancing operations, the marginal lending facility, and the deposit facility at zero, 0.25% and -0.40%, respectively.

The bank renewed its pledge that it intended to continue its programme of buying 30 billion euros ($36.6 billion) of bonds each month until September, "or beyond, if necessary". It also repeated that it expects key interest rates to remain at present levels "for an extended period of time" and "well past" the planned end of its asset-buying programme.

ECB President Mario Draghi acknowledged some “moderation” in growth momentum but stressed that the region’s expansion remains “solid and broad-based”.

The US durable goods orders, items ranging from toasters to aircraft that are meant to last three years or more, rose 2.6% in March, compared to the expected increase of 1.6%. Orders for non-defence capital goods excluding aircraft, a closely watched proxy for business spending plans, slipped 0.1% in March.

The US wholesale inventories rose 0.5% in the preliminary March reading, compared to the expected 0.7% and February’s 1%.

The US initial claims for state unemployment benefits fell 24,000 to 209,000 for the week ended April 21, the lowest level since December 1969.

Day ahead

Key factors to watch today include the eurozone’s economic data in April, the US personal consumption expenditure (PCE) and gross domestic product (GDP) in the first quarter, and the US consumer sentiment index in April by the University of Michigan.

The US dollar is expected to remain rangebound today.

 


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Macro Roundup (Apr 27) - Shanghai Metals Market (SMM)