SHANGHAI, May 23 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar index dipped from its five-month high to close at 93.59 last night. It lost momentum after US-Sino trade tension abated.

Base metals saw mixed trading overnight. LME lead touched a two-and-half month's high and closed over 2% higher due to worries of tight supply. Copper and nickel inched up while zinc fell nearly 1.9%. Aluminium lost almost 0.7%, and tin dipped. Most SHFE base metals weakened except for copper, which closed nearly 1% higher. Zinc fell over 1%, aluminium dipped over 0.4%, and the rest edged down.

The US Richmond Fed manufacturing index rebounded from -3 in April to 16 in May. The gain was fuelled by growth in the indices for shipments, new orders, and employment. Traders value the Richmond manufacturing index as it is usually released close to the end of the month and may offer indications on the national manufacturing report released by the Institute of Supply Management (ISM) at the start of each month. 

US crude oil inventories during the week ended May 18 shrank 1.3 million barrels, compared with the previous rise of 4.85 million barrels, according to data from the American Petroleum Institute (API). API gasoline inventories for the week increased unexpectedly by 980,000 barrels, compared with the previous decline of 3.37 million barrels. The API weekly refined oil inventory registered a drop of 1.3 million barrels, compared with a decline of 768,000 barrels in the previous week.

Day ahead

The Markit manufacturing purchasing managers’ indices (PMI) in May for the US, the eurozone, Germany, and France will be released today.

The US dollar index is likely to rise back above 94 if the Federal Reserve Board releases positive details on raising interest rates in its meeting today. Base metals are expected to trade rangebound with pressure from a stronger US dollar. 

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