SHANGHAI, Apr 4 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
LME base metals, except for tin, traded higher on Wednesday. Zinc saw the biggest gain of more than 2%, nickel rose 1.4%, lead climbed 1.2%, copper advanced close to 1%, aluminium crept 0.6% and tin gained 0.4%.
SHFE base metals closed higher across the board overnight. Zinc went up 2.2%, nickel rose close to 1.2%, copper gained close to 0.8%, lead grew 0.5%, tin and aluminium inched up close to 0.2%.
The US dollar weakened on Wednesday after data showed that US services sector activity slowed to a more than 1-1/2-year low in March amid a sharp drop in new orders, underscoring slowing economic growth that supports the Federal Reserve's decision to halt further interest rates increases this year.
The Institute for Supply Management (ISM) Wednesday said that its non-manufacturing index fell to 56.1 in March, the weakest print since August 2017, down from 59.7 in February. Economists polled by Refinitiv expected the index to dip to 58.
Weaker-than-expected US ADP employment data also weighed on the greenback. Private-payrolls processor ADP on Wednesday said that US private employers added 129,000 jobs in March, below economists' expectations and the lowest since September 2017. Consensus forecasts were calling for job gains of 175,000, and 183,000 jobs were created in February.
In China, activity in its services sector picked up to a 14-month high in March as demand improved at home and abroad, a private survey showed, adding to signs that government stimulus policies are gradually kicking in.
The Caixin services purchasing managers' index (PMI), released on Wednesday, rose to 54.4 last month, the highest since January 2018 and up from February's 51.1, a fourth-month low. A reading above 50 indicates an expansion in activity from the previous month, while a level below that points to a contraction.
Beijing on Wednesday said that it will cut government-related fees and service charges to reduce costs for companies and individuals from July 1. This is part of a wider pledge to pare trillions in taxes and fees this year.
To expand imports and spur consumption, China will also cut import duties on travelers' luggage and personal mailed parcels from April 9, the state council added.
The US Energy Information Administration (EIA) reported on Wednesday that US crude inventories surged by 7.2 million barrels in the week through March 29, compared to an expected fall of 800,000 barrels.
US gasoline stockpiles fell by 1.8 million barrels, and distillate fuel inventories, which include diesel and home heating fuel, dropped by 2 million barrels, EIA reported.
Eurozone retail sales rose 0.4% in February, beating the forecast of 0.2%.
British lawmakers voted on Wednesday to approve the first stage of legislation which would force May to seek a delay to Brexit in order to prevent the risk of leaving without a deal on April 12.
US weekly jobless claims and March job cut announcements will be released today.
Futures exchanges in China will close for Qingming Festival tonight.