SHANGHAI, Mar 22 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
Despite the Federal Reserve’s dovish stance, the US dollar rebounded and regained most of the ground lost in the previous session, to a nearly three-day high of 96.63, as Brexit concerns weighed on the euro and sterling.
The pound extended losses amid fears of a catastrophic "no-deal" Brexit should lawmakers hold firm in their rejection of Prime Minister Theresa May's deal with the EU.
EU leaders agreed on a plan to delay the Article 50 process, postponing Brexit beyond 29 March. The UK will be offered a delay until 22 May, if MPs approve the withdrawal deal negotiated with the EU next week.
Base metals ended mostly lower as LME nickel led the losses and dropped 2.36%. LME aluminium fell 1.63%, zinc declined 1.48%, copper fell 0.93%, while tin and lead nudged up. SHFE nickel slid over 2%, zinc dipped 0.68%, copper lost 0.53%, aluminum went down 0.47%, tin edged down, while lead grew 0.18%.
The US President Donald Trump said the economy would have grown much faster last year if the Federal Reserve had not been tightening credit last year.
In a broadcast interview on Thursday, Trump said without the Fed’s rate hikes last year and moves to trim its bond holdings, the economy, as measured by the gross domestic product, would have grown by over 4%.
The number of Americans filing applications for unemployment benefits fell more than expected last week, pointing to still strong labor market conditions, though the pace of job growth has slowed after last year's robust gains.
Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 221,000 for the week ended March 16, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported.
The four-week moving average of initial claims, considered a better measure of labour market trends as it irons out week-to-week volatility, rose 1,000 to 225,000 last week.
Economic data slated for release today include March’s Markit manufacturing purchasing managers index (PMI) for the US, Germany, and eurozone. The US will also release data of its wholesale inventories for January, and pending home sales for February.