SHANGHAI, Nov 28 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar rose to the highest in two weeks after Federal Reserve vice chairman Richard Clarida said that the US central bank’s interest-rate policy should be aimed at sustaining economic expansion and that gradual interest-rate hikes are the best way forward.
Clarida also stressed the importance of monitoring new economic data as monetary policy is getting close to a neutral stance.
The pound dipped against the US dollar and euro as the US President Donald Trump warned that Prime Minister Theresa May's Brexit deal may hurt UK-US trade.
"Sounds like a great deal for the EU," Trump said at the White House. "You know, right now, if you look at the deal, they may not be able to trade with us, and that wouldn't be a good thing," he added.
Base metals, expect for SHFE nickel, fell across the board with LME tin leading the losses and closing 3.06% lower. LME zinc slumped 2.49%, lead lost 2.34%, nickel declined 1.29%, aluminium dropped 1.26%, and copper slid 1%. SHFE tin dipped 1.32%, zinc fell 0.52%, aluminium, lead, and copper edged down, while nickel went up slightly.
Profits of China’s industrial enterprises above a designated size grew at an annualised rate of 3.6% in October, down from September’s 4.1%, according to National Bureau of Statistics (NBS).
The profit growth cooled for a sixth straight month in October as factory prices and the pace of sales increases softened amid uncertainties caused by China-US trade war. The slowdown was largely due to cooling factory-gate inflation and a high base, NBS official He Ping said in a statement.
The American Petroleum Institute (API) reported late Tuesday that US crude supplies rose by some 3.45 million barrels for the week ended November 23. The API data also showed gasoline supplies declined by 2.6 million barrels, but distillate stockpiles rose by 1.2 million barrels.
The US will release personal consumption expenditures (PCE) price index, its gross domestic product (GDP) for the third quarter, October’s wholesale Inventories, and weekly crude oil Inventory data from the Energy Information Administration (EIA). Germany will release Gfk's consumer confidence index for December today.