SHANGHAI, Nov 21 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar rallied from a two-week low and settled at 96.79 as a sell-off in global stock markets spurred safe-haven bids and investors grew concerned about slowing global growth.
"Dovish comments from the Fed that the world economy may be cooling has dented investor sentiment," said Viash Sreemuntoo, corporate trader at onlineforeign exchange broker XE. Persisting worries about the US-China trade conflict and Brexit negotiations also kept investors cautious.
Major tech sent stocks lower as all major US indexes lost gains in 2018. Global stock markets were selling off on Tuesday as the tech slump that gripped US equities on Monday spread around the world. At the US open, all three major indexes dropped sharply, with the Nasdaq dipping another 2%.
Bank of England governor Mark Carney on Tuesday backed UK Prime Minister Theresa May's EU withdrawal plans and warned a no-deal Brexit would be the "worst outcome".
In a hearing with members of Parliament on the Treasury Select Committee, he said that the central bank welcomed "the transition arrangements in the withdrawal agreement" and noted the "possibility of extending that transition period".
In the hearing, Bank of England chief economist Andy Haldane said that there were already some signs of "uncertainties around a cliff-edge" which has begun to have material impact on investment plans for businesses. He believed that Brexit uncertainty remained the largest concern that companies identified in the Bank's recent survey, conducted in September and October.
Base metals, except for LME aluminium, fell across the board with LME zinc leading the losses and closing 2.48% lower. LME tin slid 1.58%, lead declined 1.58%, copper dipped 1.31%, and nickel lost 0.94%. SJFE zinc slumped 2.1%, tin fell 1.83%, nickel dropped 1.51%, copper went down 1.35%, aluminium lost 0.65%, and lead closed 0.16% lower.
The American Petroleum Institute (API) reported that US crude supplies fell by roughly 1.55 million barrels for the week ended November 16, compared with a build of 8.79 million barrels in the previous week.
The API data also showed that gasoline supplies climbed by 706,000 barrels while distillate stockpiles declined by 1.8 million barrels.
The US will release its weekly jobless claims, durable goods orders and existing home sales for October, University of Michigan consumer sentiment index for November, as well as weekly oil inventory data from the Energy Information Administration today.