SHANGHAI, Dec 19 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
LME base metals, except for lead, traded lower on Tuesday, with the greatest losses in copper, down 2.9% on the day. Zinc and nickel dropped 1.4%, tin fell 0.6% and aluminium lost 0.5%.
SHFE base metals performed similarly overnight. Copper tumbled 1.9%, nickel sank 1.8%, zinc declined 1.1%, tin slipped 0.5% and aluminium edged down 0.2% while lead climbed 0.9%.
The US dollar fell to a week-low on Tuesday as investors unwound long bets on the currency, anticipating that the Federal Reserve could slow the pace of US interest rate hikes after this week's policymaking meeting.
The greenback weakened for a second straight session. A rout on Wall Street on Monday, mixed US and global economic data, and continued market volatility, bolstered a view that the Fed's widely expected rate hike on Wednesday could mark the end of three years of steady rate increases.
Oil prices plunged on Tuesday as the US and Russia continue to pump at record levels even as analysts warn that signs of faltering demand are emerging.
This month, oil output from US shale fields is set to exceed 8 million barrels per day for the first time ever, the US Energy Information Administration (EIA) reported on Monday.
Chinese President Xi Jinping on Tuesday stressed the importance of staying on the path of socialism with Chinese characteristics, upholding and developing socialism with Chinese characteristics at a commemoration of the 40th anniversary of China's reforms and opening-up.
"No one is in a position to dictate to the Chinese people what should or should not be done," he said. "We will resolutely reform what should and can be reformed, and make no change where there should not and cannot be any reform," he added.
The Munich-based Ifo economic institute said that its business climate index for Germany fell for the fourth month in a row to 101 in December, its lowest level in more than two years and weaker than a forecast of 101.7.
"Concern is growing among German businesses," said Ifo chief Clemens Fuest. "Companies were less satisfied with their current business situation. Their business expectations also continued to deteriorate. The German economy faces a lean festive season."
China will begin its Central Economic Working Conference today.
Economic data slated for release today include US third-quarter trade balance, November existing home sales and EIA weekly crude stocks data.