Macro Roundup (Aug 29)

SHANGHAI, Aug 29 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

A strong Conference Board (CB) Consumer Confidence index for August lowered the US dollar index by 0.07%. 

Most LME and SHFE base metals gained. LME aluminium jumped 2.4%, nickel rose 1.6%, copper increased over 1%, while SHFE nickel surged 1.5%, aluminium went up 1.2%, and copper closed 0.78% higher. LME lead, zinc and SHFE lead and tin edged down. 

US wholesale inventories gained 0.7% in July and stocks at retailers increased 0.4%, suggesting inventories could bolster gross domestic product this quarter.

The US' CB consumer confidence surged to near an 18-year high in August, at 133.4, up 5.5 from July. The Present Situation index rose to 172.2 in August, from July’s 165.9. In terms of the short-term outlook, the Expectations index rebounded to 107.6, compared with previous 101.7. 

The Present Situation index is a sub-index that measures overall consumer sentiment of the current economic situation. It is used to derive the Consumer Confidence index. 

"Consumer confidence increased to its highest level since October 2000 (Index, 135.8), following a modest improvement in July," said Lynn Franco, director of economic indicators at the CB. "Consumers' assessment of current business and labour market conditions improved further. Expectations, which had declined in June and July, bounced back in August and continue to suggest solid economic growth for the remainder of 2018. Overall, these historically high confidence levels should continue to support healthy consumer spending in the near-term."

The American Petroleum Institute (API) reported a surprise oil inventory build of 38,000 barrels of US crude oil inventories for the week ended August 24. Last week, the API reported an unexpected draw of 5.17 million barrels of crude oil. API gasoline inventories for the week ended August 24 increased 21,000 barrels after it shrank 930,000 barrels a week ago. 

Day ahead

Market participants should monitor data including the US GDP and its personal consumption expenditures (PCE) price index for the second quarter.