SHANGHAI, May 30 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar index surged to a high since November last year at 95.03 overnight and closed 0.47% higher from Monday at 94.85 as the euro plunged on concerns of Italy's election crisis. Base metals went down across the board as a result.
The White House announced last night that the US will proceed with its plan to levy 25% tariffs on $50 billion of Chinese goods. A list of goods will be released by June 15.
The US S&P CoreLogic Case-Shiller home price index rose 6.8% year on year in March, higher than the expected 6.4% and February's 6.76%. This marked the fastest rising pace since June 2014. Home prices in March rose 0.53% from February, slower from the expected 0.7%.
"The spring home shopping season has been a perfect storm of strong demand and tight supply," said online real estate database company Zillow's senior economist Aaron Terrazas. "Sluggish new construction has exacerbated the supply situation and homes that are hitting the market are moving very quickly once they do. Americans are also in a spending mood, boosted by recent tax cuts and rising wages."
The Conference Board consumer confidence index in May stood at a three-month high of 128. It met expectations and stood higher from April's 125.6.
"Consumers' assessment of current conditions increased to a 17-year high, suggesting that the level of economic growth in Q2 is likely to have improved from Q1. Consumers' short-term expectations improved modestly, suggesting that the pace of growth over the coming months is not likely to gain any significant momentum. Overall, confidence levels remain at historically strong levels and should continue to support solid consumer spending in the near-term," said Lynn Franco, director of economic indicators at the Conference Board.
Key factors to watch today include the eurozone's economic data for May, the US ADP non-farm employment changes in May, and its gross domestic product (GDP) in the first quarter.
The US dollar is likely to hover at current levels in the short term, but a fall is also likely due to fresh worries over a US-Sino trade war. Base metals are expected to retain their rangebound patterns.
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