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Macro Roundup (Dec 29)
Dec 29,2018 08:33CST
data analysis
Macro Roundup

SHANGHAI, Dec 29 (SMM) – This is a roundup of global macroeconomic news last night.

LME base metals traded mixed on Friday. Zinc saw the biggest loss of 1.8% and aluminium dropped 0.7% while tin nudged up 0.05%, nickel inched up 0.2%, copper gained 0.3% and lead climbed 0.4%.

SHFE base metals also saw mixed performance on Friday. Tin fell 1%, aluminium sank 0.9%, nickel lost 0.3% and copper slipped 0.1% while zinc rose 0.5% and lead advanced 0.7%. The SHFE was closed overnight for the New Year's Day holiday.

The US dollar index dipped on Friday as stocks traded higher after a week of price swings.

The greenback took a hit in recent weeks, on growing expectations that the Federal Reserve will stop its tightening cycle sooner than expected. A partial shutdown of the US federal government, trade tensions between the US and China and Brexit issues alre grew investor caution.

Inflation in Germany as measured by the consumer price index is expected to be 1.7% in December, according to the Federal Statistical Office (Destatis). Consumer prices are expected to increase by 0.1% from November. On an annual average, inflation is expected to be 1.9% in 2018.

Destatis also reported that the harmonised index of consumer prices for Germany, which is calculated for European purposes, is expected to increase 1.7% in December year on year, and 0.3% month on month. On an annual average, the harmonised index of consumer prices is expected to increase 1.9% in 2018 compared with 2017.

Manufacturing in the Chicago-area slowed in December, showed industry data on Friday.

In a report, the Institute for Supply Management (ISM) said that its Chicago purchasing managers’ index (PMI) fell to a seasonally adjusted 65.4 this month, from 66.4 in November. Analysts had expected the index to decrease to 60.3 in December.

Contracts to buy resale homes fell unexpectedly in November, the National Association of Realtors (NAR) said on Friday, the latest sign of weakness in the US housing market.

The NAR's pending home sales index decreased 0.7% from the prior month to 101.4. October's index was unrevised. Economists had forecast pending home sales to rise 1% in November.

Pending home contracts are seen as a forward-looking indicator of the health of the housing market because they turn into sales a month or two later.

Compared to a year ago, pending sales were down 7.7% in November, the 11th straight year-over-year drop.

The housing market has been constrained by higher mortgage rates as well as land and labour shortages, which tightened inventory. Though inflation of home prices slowed significantly, it continues to outpace wage growth, sidelining some first-time homebuyers.

US crude stocks fell modestly last week, while gasoline stocks increased more than expected, the Energy Information Administration (EIA) said on Friday.

Crude inventories lost 46,000 barrels in the week to December 21, compared with analysts' expectations for a decrease of 3.4 million barrels.

Crude stocks at the Cushing, Oklahoma, delivery hub rose by 799,000 barrels, EIA said.

Gasoline stocks rose by 3 million barrels, compared with analysts' expectations for a gain of 1 million barrels.

Distillate stockpiles, which include diesel and heating oil, rose by 2,000 barrels, versus expectations for a drop of 1 million barrels, the EIA data showed.

The US oil and natural gas rig count climbed by three to 1,083 for the week ended December 28, according to data from Baker Hughes, a GE Company (BHGE). US drillers added two oil-directed rigs and a natural gas-directed unit this week.


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