SHANGHAI, May 8 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar index climbed up towards 93 overnight, hitting a fresh high this year as the market maintained an upbeat outlook on the US economy and anticipated the Federal Reserve Board’s interest rate hikes. It closed at 92.76, up 0.22%.
Most SHFE metals fell with nickel, tin and copper slightly down. SHFE aluminium closed flat, while zinc and lead saw smaller increases.
China's foreign exchange reserves in April fell more than expected, to a five-month low, due to the weakening of non-dollar denominated currencies against the greenback and lower asset prices. Reserves stood at $3.13 trillion at the end of April, down $17.97 billion from $3.14 trillion a month earlier.
The eurozone Sentix investor confidence index in May weakened for four consecutive months to a new low since February 2017. The index came in at 19.2 in May, compared to the expected 21 and April’s 19.6.
“Uncertainties about the introduction of punitive US tariffs and the danger that this could lead to an expansion of protectionist measures are weighing on us,” Sentix managing director Manfred Hubner said in the report.
China’s trade balance in April is the key factor to watch today.
The US dollar is likely to stay at highs in the short term as the US economy remains on track. Base metals are expected to continue their rangebound and mixed patterns in the short term.
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