SHANGHAI, Jun 7 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar fell for three consecutive trading days and closed at 93.6 overnight while the euro climbed up. Following Canada and Mexico,the European Commission approved the decision on Wednesday to impose additional duties on the full list of US products submitted to the World Trade Organization (WTO) in response to the US tariffs on EU steel and aluminium products.

Base metals rose across the board except for zinc and nickel. LME copper led the increases with a gain of 1.7% and hit the highest level in three and a half months as the US dollar weakened and as the worries lingered over supply from the Chile Escondida labour negotiation. LME tin rose over 1% and touched the highest level since May 10. LME lead went up over 1% and aluminium nudged up while zinc and nickel traded rangebound at high levels and dipped. LME zinc hit the highest level since the end of April and nickel registered the highest level since mid-April. SHFE metals performed similarly with copper leading gains. SHFE tin rose over 1%, aluminium rose close to 1% and lead inched up.

The US trade deficit fell to a seven-month low and stood at $46.2 billion in April as exports rose to a record high, driven by an increase in shipments of industrial materials and soybeans. The deficit for March was revised to $47.2 billion, instead of the previously reported $49.0 billion.

If the trend in the real trade deficit is maintained, trade could contribute to gross domestic product (GDP) in the second quarter after having a neutral impact in the January-March period. But a protectionist trade policy being pursued by President Donald Trump poses a threat to the otherwise rosy economic outlook.

In April, exports of goods and services rose 0.3% to a record high of $211.2 billion, supported by the record high levels of deliveries of industrial supplies and materials such as fuel oil and petroleum products. Soybean exports increased $0.3 billion and corn shipments also rose by a similar amount.

Exports to China dropped 17.1% in April while imports from China remained barely changed.

US crude oil inventories during the week ended June 1 shrank 2 million barrels, compared with the previous rise of 1 million barrels, according to data from the American Petroleum Institute (API). API gasoline inventories for the week sharply increased by 3.80 million barrels, compared with the previous decline of 1.68 million barrels.

US crude oil inventories during the week ended June 1 unexpectedly rose 2.07 million barrels, compared with the previous decline of 3.62 million barrels, according to data from the Energy Information Administration (EIA). EIA gasoline inventories for the week sharply increased by 4.60 million barrels, compared with the previous rise of 534,000 million barrels, and refined oil inventories also sharply went up 2.17 million barrels, compared to the previous increase of 634,000 barrels.

Day ahead

Key factors to watch today include China's foreign exchange reserves in May, the eurozone’s seasonally adjusted GDP in the first quarter and the US initial jobless claims over the week ended June 2.

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