SHANGHAI, Jul 11 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar index gained 0.04% to close at 94.09 as the euro weakened. The US President Donald Trump’s push for allies of the North Atlantic Treaty Organization (NATO) to increase military spending added to market worries.
Base metals fell for the most part, except for tin and nickel. LME zinc led the losses and closed over 2.2% lower. It touched the lowest level since June 21 last year amid rising supply.
China's consumer price index (CPI), a main gauge of inflation, rose 1.9% year on year in June, in line with expectations and up from May's gain of 1.8%. The figure dipped 0.1% month on month, compared with a 0.2% drop in May.
The producer price index (PPI), a gauge of industrial profitability, rose 4.7% in June from a year ago, accelerating from May's increase of 4.1% and marking the highest growth rate this year. The figure also gained 0.3% month on month, down from the previous month's increase of 0.4%.
Carry-over effects of price changes in 2017 contributed 1.5 percentage points to the CPI gains in June, and as for PPI, the base factor made up for 4.1 percentage points, according to the National Bureau of Statistics.
New price-rising factors accounted for 0.4 and 0.6 percentage points, respectively, for the rises in CPI and PPI, the agency said.
The ZEW economic sentiment index for Germany slumped to -24.7 in July, compared with the expectation of -18.9 and June’s -16.1. The July figure marked a record low since August 2012.
Eurozone ZEW economic sentiment followed a similar trend, dropping to -18.7 in July. This reading was weaker than June's -12.6.
"The current survey period has been marked by great political uncertainty. In particular, fears over an escalation of the international trade war with the United States have dampened the economic outlook," said ZEW president professor Achim Wambach.
Key factors to watch today include the US weekly crude oil inventories, its PPI in June and wholesale inventories data in May.