Macro Roundup (Mar 14)

Data Analysis 08:44:52AM Mar 14, 2019 Source:SMM

SHANGHAI, Mar 14 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar dipped to the lowest since March 4, at 96.37, after new inflation data increased expectations that US interest rates will not be raised anytime soon. 

The pound climbed after the UK Parliament rejected another Brexit deal. Parliament voted that Britain should not leave the European Union without a proper withdrawal agreement, signalling that lawmakers will seek to delay Brexit. 

Base metals ended mixed as LME lead grew close to 2%, aluminium jumped 1.38%, nickel climbed 0.5%, while tin fell 0.33%, zinc lost 0.21%, and copper edged down. SHFE aluminium rose 0.7%, zinc gained 0.37%, lead increased 0.34%, while copper fell 0.24%, tin slid 0.13%, and nickel dipped. 

New orders for key US-made capital goods rose the most in six months in January and shipments increased, but business spending on equipment remained soft, leaving forecasts for weak first-quarter economic growth intact.

The US orders for durable goods rose 0.4% in January, led by a 15.9% rise in orders for commercial aircraft, the Commerce Department reported on Wednesday. This compared with the expected -0.5%.

The producer price index (PPI) for final demand edged up 0.1% in February, seasonally adjusted, the US Bureau of Labor Statistics announced Wednesday. On an unadjusted basis, the final demand index moved up 1.9% for the 12 months ended in February.

"There is still a strong case for the Fed to remain patient," said Michael Pearce, a senior US economist at Capital Economics in New York. "The rebound in underlying capital goods orders is still consistent with a slowdown in business equipment investment growth, and producer price figures show few signs of a pick-up in inflation in the pipeline."

US crude oil stockpiles declined unexpectedly last week as output slipped from record highs and refining rates edged up, while gasoline stocks decreased and distillate inventories rose, the Energy Information Administration (EIA) said on Wednesday.

Crude inventories fell by 3.86 million barrels for the week ended Friday March 8, compared with expectations for an increase of 2.67 million barrels.

Day ahead

China will release data for its value-added of industries and urban investment in fixed assets for January-February, and its retail sales of consumer goods for February. The US will release data on its import price index for February, new home sales in January, as well as weekly unemployment claims. 

Key Words:  Macroeconomics 

Macro Roundup (Mar 14)

Data Analysis 08:44:52AM Mar 14, 2019 Source:SMM

SHANGHAI, Mar 14 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar dipped to the lowest since March 4, at 96.37, after new inflation data increased expectations that US interest rates will not be raised anytime soon. 

The pound climbed after the UK Parliament rejected another Brexit deal. Parliament voted that Britain should not leave the European Union without a proper withdrawal agreement, signalling that lawmakers will seek to delay Brexit. 

Base metals ended mixed as LME lead grew close to 2%, aluminium jumped 1.38%, nickel climbed 0.5%, while tin fell 0.33%, zinc lost 0.21%, and copper edged down. SHFE aluminium rose 0.7%, zinc gained 0.37%, lead increased 0.34%, while copper fell 0.24%, tin slid 0.13%, and nickel dipped. 

New orders for key US-made capital goods rose the most in six months in January and shipments increased, but business spending on equipment remained soft, leaving forecasts for weak first-quarter economic growth intact.

The US orders for durable goods rose 0.4% in January, led by a 15.9% rise in orders for commercial aircraft, the Commerce Department reported on Wednesday. This compared with the expected -0.5%.

The producer price index (PPI) for final demand edged up 0.1% in February, seasonally adjusted, the US Bureau of Labor Statistics announced Wednesday. On an unadjusted basis, the final demand index moved up 1.9% for the 12 months ended in February.

"There is still a strong case for the Fed to remain patient," said Michael Pearce, a senior US economist at Capital Economics in New York. "The rebound in underlying capital goods orders is still consistent with a slowdown in business equipment investment growth, and producer price figures show few signs of a pick-up in inflation in the pipeline."

US crude oil stockpiles declined unexpectedly last week as output slipped from record highs and refining rates edged up, while gasoline stocks decreased and distillate inventories rose, the Energy Information Administration (EIA) said on Wednesday.

Crude inventories fell by 3.86 million barrels for the week ended Friday March 8, compared with expectations for an increase of 2.67 million barrels.

Day ahead

China will release data for its value-added of industries and urban investment in fixed assets for January-February, and its retail sales of consumer goods for February. The US will release data on its import price index for February, new home sales in January, as well as weekly unemployment claims. 

Key Words:  Macroeconomics