SHANGHAI, Aug 20 (SMM) – This is a roundup of global macroeconomic news last weekend and what is expected today.
The US dollar index fell to 96.11 on Friday on lower demand for the safe-haven greenback, as traders hoped the upcoming trade talks between the US and China would ease tension. The index remained shy of the more than 13-month high of 96.984 on Wednesday.
LME base metals, except for lead and aluminium, closed higher across the board on Friday. Nickel surged 1.6%, copper went up 0.74%, tin increased 0.64% and zinc gained 0.44%. SHFE base metals closed mixed on Friday night. Nickel rose over 1%, zinc went up 0.43%, copper edged up 0.25% while lead dipped 0.03%, tin edged down 0.14% and aluminium fell 0.41%.
The eurozone’s consumer price inflation matched expectations and accelerated to 2.1% year on year in July from 2% in June, pushed up by higher energy costs, data showed on Friday. The rate exceeded the target by the European Central Bank (ECB).
The inflation rate could be well received by ECB policymakers, who are looking to end a bond purchasing programme by the end of the year and possibly raise interest rates next year.
Core figures, excluding food, energy, alcohol, and tobacco, also matched the estimate of 1.1% year-on-year increase in prices in July.
US consumer sentiment fell to an 11-month low in the preliminary August reading, with households expressing concerns about the rising cost of living, potentially signalling a slowdown in consumer spending.
The University of Michigan on Friday said that its consumer sentiment index fell to 95.3 early this month, the weakest since September 2017, from 97.9 in July. The survey’s sub-index of current conditions of consumer expectations dropped to 107.8 from 114.4 in July.
Key things to watch today include Germany’s producer price inflation in July and Atlanta Federal Reserve President Raphael Bostic’s speech on the US economic outlook.