Macro Roundup (Jul 27)-Shanghai Metals Market

Hot Keywords

  • Zinc
  • Aluminium
  • Silicon
  • Futures movement
  • Inventory data
  • Copper
  • Prebaked anode
  • NEV
  • Lead
  • Nickel
  • Evening comments
  • MMi Iron Ore Port Index
  • New Energy Vehicle
  • Production data
  • Market commentary

Macro Roundup (Jul 27)

Data Analysis 09:28:04AM Jul 27, 2018 Source:SMM

SHANGHAI, Jul 27 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar rose 0.6% to close at 94.76 as the euro fell. This followed the European Central Bank (ECB)’s decision to keep interest rate and its exit of quantitative easing (QE) on hold at its governing council meeting. 

Base metals inched up for the most part as market worries eased after the US and EU stepped back from a potential trade war and agreed to be at the negotiation table. SHFE lead led the gains and closed nearly 1% higher, while LME copper and tin edged down. Other base metals increased slightly. 

The ECB decided on its governing council meeting that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0%, 0.25% and -0.40% respectively. It also expects the key rates to stay at current levels to at least the summer of 2019.

German’s forward-looking consumer confidence index dipped from July’s 10.7 to 10.6 in August, according to market research group GfK. This fell short of the expected 10.7. 

The economic expectations sub-index fell to 15.7 in July from 23.3 in June, amid concerns that the trade conflict with the US may have a negative impact on German exports, GfK said.

"Among consumers, the impression is growing ever stronger that the international crisis will cause the German economy to slow down," Rolf Buerkl, a researcher for GfK, said in a statement.

The US initial claims for state unemployment benefits rose 9,000 to a seasonally adjusted 217,000 for the week ended July 21. Claims dropped to 208,000 during the week ended July 14, which was the lowest reading since December 1969.

The labour market is considered as being near or at full employment. Employment grew an average 215,000 jobs per month in the first half of the year. The jobless rate rose to 4% in June with more Americans entering the labour force, indicating confidence in the labour market.

The US durable goods orders increased 1% in June, the first increase in three months, compared with the expected growth of 3%. Orders for non-defence capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 0.6% last month. 

Shipments of core capital goods jumped 1% last month. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement.

Business spending on equipment has risen since the fourth quarter of 2016. It is expected to have combined with robust consumer spending and strong export growth to boost second-quarter GDP growth.

Day ahead

Key things to watch today will be of profits of Chinese industrial companies above a designated size in June, the US GDP and personal consumption expenditures (PCE) price index in the second quarter, as well as the University of Michigan consumer confidence index in July. 

 

Key Words:  Macroeconomics 

Price

more
#1 Refined Cu
Apr.19
49430.0
-170.0
(-0.34%)
Yangshan Copper Premium(Bill of Lading)
Apr.19
51.5
0.0
(0.00%)
Yangshan Copper Premium(Warehouse Warrant)
Apr.19
50.5
0.0
(0.00%)
Imported Cu Concentrate TC(Cu≥26%,Week)
Apr.19
67.0
-1.5
(-2.19%)
Imported Cu Concentrate TC(Cu≥26%,Month)
Mar.29
73.5
-6.0
(-7.55%)

Macro Roundup (Jul 27)

Data Analysis 09:28:04AM Jul 27, 2018 Source:SMM

SHANGHAI, Jul 27 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar rose 0.6% to close at 94.76 as the euro fell. This followed the European Central Bank (ECB)’s decision to keep interest rate and its exit of quantitative easing (QE) on hold at its governing council meeting. 

Base metals inched up for the most part as market worries eased after the US and EU stepped back from a potential trade war and agreed to be at the negotiation table. SHFE lead led the gains and closed nearly 1% higher, while LME copper and tin edged down. Other base metals increased slightly. 

The ECB decided on its governing council meeting that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0%, 0.25% and -0.40% respectively. It also expects the key rates to stay at current levels to at least the summer of 2019.

German’s forward-looking consumer confidence index dipped from July’s 10.7 to 10.6 in August, according to market research group GfK. This fell short of the expected 10.7. 

The economic expectations sub-index fell to 15.7 in July from 23.3 in June, amid concerns that the trade conflict with the US may have a negative impact on German exports, GfK said.

"Among consumers, the impression is growing ever stronger that the international crisis will cause the German economy to slow down," Rolf Buerkl, a researcher for GfK, said in a statement.

The US initial claims for state unemployment benefits rose 9,000 to a seasonally adjusted 217,000 for the week ended July 21. Claims dropped to 208,000 during the week ended July 14, which was the lowest reading since December 1969.

The labour market is considered as being near or at full employment. Employment grew an average 215,000 jobs per month in the first half of the year. The jobless rate rose to 4% in June with more Americans entering the labour force, indicating confidence in the labour market.

The US durable goods orders increased 1% in June, the first increase in three months, compared with the expected growth of 3%. Orders for non-defence capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 0.6% last month. 

Shipments of core capital goods jumped 1% last month. Core capital goods shipments are used to calculate equipment spending in the government’s gross domestic product measurement.

Business spending on equipment has risen since the fourth quarter of 2016. It is expected to have combined with robust consumer spending and strong export growth to boost second-quarter GDP growth.

Day ahead

Key things to watch today will be of profits of Chinese industrial companies above a designated size in June, the US GDP and personal consumption expenditures (PCE) price index in the second quarter, as well as the University of Michigan consumer confidence index in July. 

 

Key Words:  Macroeconomics