SHANGHAI, May 22 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
As US-Sino trade concerns eased, the US dollar surged to a high of 93.97 overnight. It closed 0.1% lower at 93.55.
Base metals received support as fears of a trade war abated but faced resistance from a stronger US dollar. LME base metals rose across the board with lead up over 3% last night. Copper touched a week's high and closed over 1% higher amid a bullish outlook on demand. Nickel gained 0.7%. Tin, aluminium, and zinc inched up with zinc hitting a three-week high. SHFE base metals also closed higher overnight except for aluminium. Lead soared over 3%, buoyed by its LME counterpart.
The Chicago Fed National Activity Index (CFNAI) stood at 0.34 in April, above the expected 0.3. The value in March was revised to 0.32 from 0.1. CFNAI is a monthly index to gauge overall economic activity and related inflationary pressure. A positive index reading corresponds with growth.
There are several economic and political developments to monitor today.
The US dollar is likely to test 94 above, while base metals are expected to trade rangebound with upward momentum as China and US avoided a trade war.
US Treasury Secretary Steve Mnuchin said on Monday that he remains very bullish on stocks and the US' sustained economic growth over 3%. "In the long term, a strong dollar is good for the United States and reflects the success of the economy," he said.
US Commerce Secretary Wilbur Ross will travel to China next week to discuss a trade agreement after the two countries reached an initial framework last week, Mnuchin said on Monday.
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