SHANGHAI, Jul 10 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar index fell below 94 on weaker-than-expected salary data, but closed slightly up from the previous trading day as the euro declined overnight on political developments in London.
Base metals mostly rose with limited momentum and pressure from the US-China trade conflict. LME copper led the gains and closed over 1.5% higher, aluminium, tin, and nickel grew nearly 1%, while zinc lost over 2%, and lead edged down. SHFE zinc also fell over 1%, lead dipped, and other SHFE base metals inched up.
China's foreign exchange reserves rose $1.51 billion in June to $3.11 trillion, compared with the expected $3.1 trillion, central bank data showed on Monday. The small increase marked a rebound after two consecutive months of decline.
The increase was due to asset price changes, the State Administration of Foreign Exchange (SAFE) said in a statement. Given asset price changes and declines of non-US dollar currencies, the US dollar inched up 0.5% last month.
The eurozone Sentix investor confidence index in July came in at 12.1, higher than the expected 9 and June’s 9.3. The rebound followed five months of dips.
However, Sentix said that the rise in the index is "unlikely to herald the start of a new upswing... Expectations remain negative, and the majority of other regions of the world are still weak."
If US President Donald Trump wanted to target the auto industry in Europe, the consequences would not be limited to the deterioration of market sentiment, it believed.
Key factors to watch today include China's consumer price index (CPI) and producer price index (PPI) in June, as well as the ZEW economic sentiment index for eurozone and Germany in July.