Macro Roundup (Nov 23)

SHANGHAI, Nov 23 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar dipped against the pound and euro, which marched higher following the news that a draft agreement had been struck between the UK and the EU.

The UK government published a 26-page document, setting out the framework for the future relationship between the UK and EU post-Brexit. The details have been agreed between the UK and the European Commission. The latest document accompanies a 585-page draft withdrawal agreement published November 15.

British Prime Minister Theresa May made a statement stating she is 'confident' that a good deal is 'in our grasp' and that she will 'deliver it' this weekend.

"Latest Brexit headlines encouraging demand particularly on the EU & UK agree on draft text on future ties. Probably some further upside right now," says Neil Jones, a foreign exchange specialist with Mizuho Bank Ltd. in London.

The US Federal Reserve is widely expected to impose its fourth rate hike of 2018 in December, but investors have concerns over how many rate hikes the central bank can implement next year without risking a slowdown in the domestic economy.

Base metals closed mixed as LME zinc led the gains and rose 1.01%. LME copper jumped 0.55%, tin went up 0.16%, while nickel and lead went down 0.63%, and aluminium fell 0.31%. SHFE lead increased 0.7%, aluminium grew 0.36%, copper gained 0.32%, zinc rose 0.24%, while tin lost 1.63%, and nickel slid 1.14%. 

Consumer Confidence in eurozone dipped from October’s -2.7 to -3.9 in November, compared with the expected -3. This was the lowest reading since March 2017 and reasserting 2018’s downward trend after October posted a small rise. 

Day ahead

Economic data slated for release today include Germany’s gross domestic product (GDP) for the third quarter, as well as November’s Markit manufacturing purchasing managers index (PMI) for Germany, eurozone, and the US.