SHANGHAI, Jul 5 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar inched down and hovered around 94.5 as markets remained wary over the China-US trade war ahead of tariffs implementation.
Most LME and SHFE base metals dropped. LME zinc and lead fell over 2%, copper and nickel lost over 1%, tin inched down, while aluminium went up slightly. Copper touched the lowest level since August 2017, and zinc hit a record low since June 2017. Meanwhile, zinc led the loss among SHFE metals and closed nearly 3% lower. SHFE nickel and copper declined over 2%, lead dropped over 1%, tin fell 1%, and aluminium edged down.
China's Caixin services purchasing managers' index (PMI) for June came in at 53.9, compared with the expected 52.7 and May’s 52.9. This marked the highest level in four months, indicating accelerating expansion in the sector, albeit softer than historical trends.
Caixin's composite PMI, covering both manufacturing and services sectors, also rose to a four-month high in June, at 53, from May's 52.3.
However, both sectors saw slower growth in June than the beginning of the year.
"The employment and new business indices both climbed moderately, pointing to a positive trend in the service supply and demand sides. Input costs rose more than prices charged, putting pressure on service providers' confidence. The index of business expectations, a gauge of companies' confidence towards the 12-month outlook, dipped from a recent high seen in May," according to Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group.
Key factors to watch today include the US ADP employment data in June, its weekly jobless claims, June's non-manufacturing PMI surveyed by the Institute for Supply Management (ISM), and weekly crude oil inventory data from the Energy Information Administration (EIA).