Macro Roundup (Aug 17)

Published: Aug 17, 2018 08:46

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A roundup of global macroeconomic news last night and what is expected today

SHANGHAI, Aug 17 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar index came off from a 13.5-month high and closed at 96.57 on Thursday, while the Chinese yuan recovered from its weakest level since January 2017 on news that Beijing and Washington will resume trade talks later this month.

Base metals rose across the board overnight. LME zinc surged 4.2%, nickel jumped 3.6%, lead gained close to 3% with tin up 1.5%. Copper was up close to 1%, while aluminium was up 0.79%. SHFE nickel rose close to 2%, tin climbed 0.57%, zinc edged up 0.53% with aluminium up 0.42%. Copper inched up 0.25% and lead 0.11%.

The eurozone’s surplus for goods traded with the rest of the world fell by less than forecast in June, suggesting the bloc may be weathering international trade frictions better than expected.

European statistics office Eurostat said on Thursday that the bloc had a goods trade surplus of 22.5 billion euros in June on a non-seasonally adjusted basis, down from 25.7 billion a year earlier, but well above the expected 18 billion euros.

The seasonally adjusted trade surplus fell to 16.7 billion euros from May’s 16.9 billion euros.

Exports to the US increased by 3.9% in the first half of this year, while imports fell by 2.4%, widening the EU’s trade surplus with its largest trading partner.

The number of Americans filing for unemployment benefits fell for a second straight week last week, suggesting no impact yet on the labour market from ongoing trade tensions. Economists say a robust economy is helping the labour market weather the trade storm.

Initial claims for state unemployment benefits slipped 2,000 to a seasonally adjusted 212,000 for the week ended August 11, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported.

Day ahead

Key things to watch today include US consumer sentiment in August surveyed by the University of Michigan and the eurozone’s consumer price inflation in July.

Macroeconomics

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