SHANGHAI, Feb 26 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
LME base metals traded mixed on Monday. Tin rose 1.1%, lead climbed 0.9% and copper gained 0.1%, while zinc edged down 0.04%, nickel lost 0.2% and aluminium fell 0.6%,
Most SHFE base metals pulled back overnight. Nickel dropped close to 1%, zinc sank 0.5%, copper shed 0.2% and lead dipped 0.03%. Aluminium closed flat while tin nudged up 0.04%.
The US dollar extended its losses on Monday as risk appetite improved after US President Donald Trump decided to extend a March 1 deadline for additional tariffs on Chinese goods, suggesting trade negotiations between the two countries have made significant progress.
Oil prices tumbled on Monday after Trump said oil prices are “too high” in an early morning tweet. The comment that urges OPEC to lower the cost of crude put pressure on the Saudi-led group to soften its price-boosting output cuts.
On the data front, US wholesale inventories increased by the most in more than five years in December as sales fell for a third straight month, suggesting an unintended piling up of goods at wholesalers that could be flagging a slowdown in demand.
Wholesale inventories surged 1.1% in December, the largest gain since October 2013, reported by the Commerce Department on Monday. Data for November was upwardly revised to show wholesale inventories rising 0.4% instead of 0.3% as previously reported. Wholesale inventories expanded 7.3% year on year in December.
Sales at wholesalers dropped 1% in December after falling 1.2% in November.
Economic data slated for release today include Germany’s Gfk consumer confidence index for March, the US’ weekly crude stocks report from the American Petroleum Institute (API) and February consumer confidence survey from the Conference Board.
US Federal Reserve Chairman Jerome Powell will testify before congressional committees on Tuesday and Wednesday.