SHANGHAI, Jul 26 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar dipped to around 94, and closed at 94.19.

Base metals were under pressure from ongoing worries over a trade war even though the EU and US declared a ceasefire. LME aluminium fell 0.7% and zinc inched down. Nickel, tin, and copper rose slower from the previous day, with copper reaching a two-week high following BHP’s final pay offer to its workers at the giant Escondida mine in Chile. Lead closed slightly higher. SHFE base metals dipped for the most part with zinc leading the drop and closing over 1% lower. Aluminium lost 0.76%, copper and lead inched down, while tin and nickel nudged up. 

The Germany's Ifo business climate index this month fell to 101.7 from June's 101.8, but it did not register as big a drop to 101.5 as forecast. 

The economists maintained their 2018 gross domestic product (GDP) growth forecast for Germany at 1.8%. They noted that the construction sector was booming with sentiment at the strongest level since unification, and that export expectations rose for the first time in seven months. However, the US trade policy and recent German government crisis increased uncertainty among business.

The US new home sales fell 5.3% to a seasonally adjusted annual rate of 631,000 units last month, the lowest since October 2017. May's sales pace was revised down to 666,000 units from the previously reported 689,000. 

New home sales in the south, which accounts for the bulk of transactions, declined 7.7% in June. Sales fell 5.2% in the west and tumbled 13.4% in the mid-west.

While the drops were largely driven by supply constraints, there are concerns that persistent weakness could eventually spread to the broader economy.

The US crude oil inventory shrank more than the expected 3 million barrels, by 6.15 million barrels over the week ended July 20, showed data from the Energy Information Administration (EIA). This brought the inventory to the lowest level since February 2015. Meanwhile, refined oil inventory also dipped 101,000 barrels, and gasoline stock declined 2.33 million barrels over the week.

Day ahead

Key things to watch today will be the European central bank's rate decision for July, the US durable goods orders and wholesale inventories last month, as well as its weekly jobless claims.