Macro Roundup (Aug 7)

SHANGHAI, Aug 7 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar index strengthened further and closed at 95.35 overnight as investors bet that trade wars and a robust US economy would continue to drive the currency higher.

The greenback was also boosted on Monday by disappointing German industrial orders in June and fears of a no-deal Brexit. Washington has also reimposed economic sanctions on Iran.   

Base metals closed mixed overnight. LME nickel and aluminium rose over 1%, lead nudged up 0.14% while tin edged down 0.31%. Copper and zinc dropped over 1%. SHFE nickel jumped more than 2%, aluminium, lead and tin inched up while copper and zinc dipped.

Eurozone confidence among investors improved for the second straight month in August with the index climbing to 14.7 from 12.1 in July, signalling relief in EU's trade disputes with the US, survey data published by Sentix showed Monday. The expected reading was 13.4.

Germany, whose automotive industry has most to lose from US tariffs on car imports, is the biggest winner from the easing trade tensions between the two trading blocs, Sentix said.

Day ahead

Key things to watch today include eurozone industrial output and trade balance in June, China’s foreign exchange reserves for July, US job openings and labor turnover survey (JOLTS) in June and weekly crude oil inventory data from the American Petroleum Institute (API).