SHANGHAI, Sep 20 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar was steady against the euro and slipped against the risk-sensitive Aussie, as investors digested China-US tariff news. The dollar index, which measures the greenback against a basket of six other major currencies, dipped about 0.1% at 94.50.
Base metals traded with pressure for the most part as LME lead led the losses and closed 2.17% lower. LME tin lost 0.68%, copper slid 0.07%, SHFE copper dropped 0.54%, lead fell 0.26%, nickel went down 0.21%, and aluminium closed 0.17% lower. LME zinc jumped 2.25% and nickel rose 1.05%.
The British Prime Minister Theresa May is set to make a major new compromise in Brexit talks in a bid to break the deadlock over the Irish border problem. Under proposals to be brought forward by the UK government, Britain is expected to accept some checks taking place between Northern Ireland and Great Britain.
The Energy Information Administration (EIA) reported Wednesday that US crude supplies fell by 2.1 million barrels for the week ended September 14. The EIA had reported declines in each of the previous four weeks.
Gasoline stockpiles fell by 1.7 million barrels for the week, while distillate stockpiles climbed by 800,000 barrels, according to the EIA.
The US current-account deficit fell 17% in the second quarter and touched the lowest level in three years as goods exports rose. The deficit dropped to $101.5 billion from a revised $121.7 billion in the first quarter, the government said Wednesday. The current account includes not just trade but also investments made abroad as well as personal cash transfers such as foreign workers sending money home.
The Commerce Department said a tax overhaul passed by Congress in December 2017, which changed how repatriated earnings are taxed, led many companies to bring back cash parked abroad.
Market participants should monitor data including the US weekly jobless claims, its pending home sales last month, and the eurozone consumer confidence index for September.