SHANGHAI, Oct 30 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The dollar edged higher against the euro on Monday, on news German Chancellor Angela Merkel would not seek re-election as head of her Christian Democratic Union party. The dollar added to recent gains against other major currencies, supported by robust US consumer spending data on Monday.
Both LME and SHFE base metals ended in negative territory across the board overnight except for SHFE copper who stayed flat. LME lead and zinc dropped some 1.8%, aluminium slid 1.4%, nickel fell 1.2%, copper slipped 0.9% and tin lost 0.75%.
SHFE zinc sank close to 0.9%, nickel decreased over 0.6%, aluminium went down more than 0.4%, tin declined 0.35% and lead skidded about 0.2%.
US consumer spending rose for a seventh straight month in September, but moderate growth in wages limited income to its smallest gain in more than a year. This suggested that the current pace of spending was unlikely to be sustained.
Consumer spending, which accounts for more than two-thirds of US economic activity, increased 0.4% last month as households purchased more motor vehicles and increased healthcare spending.
Personal income rose 0.2% last month, the smallest increase since June 2017, after it gained 0.4% in August.
The personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, rose 0.2% after it remained flat in August. That kept the year-on-year increase in the so-called core PCE price index at 2% for a fifth straight month.
Economic data slated for release today include Germany’s unemployment rates and consumer inflation for October, the eurozone’s business climate and consumer confidence for October as well as gross domestic product for the third quarter and the Conference Board's US-based consumer confidence index for October.