SHANGHAI, May 13 (SMM) – This is a roundup of global macroeconomic news last weekend and what is expected today.
The US dollar weakened against its major rivals on Friday as market participants worked through newly-released consumer price data.
US consumer prices rose moderately in April and underlying inflation remained muted, supporting the Federal Reserve’s projection of no further interest rates increases this year.
US and China trade representatives wrapped up two days of what the US President Trump called "candid and constructive" talks on Friday but failed to reach an agreement. The Trump administration raised the stakes for future negotiations by raising tariffs on $200 billion worth of Chinese imports.
Those tariffs "may or may not be removed depending on what happens with respect to future negotiations", Trump tweeted. "The relationship between President Xi and myself remains a very strong one, and conversations into the future will continue."
Base metals mostly ended higher as LME nickel jumped 1.23%, tin advanced 0.67%, aluminium rose 0.47%, copper went up 0.08%, zinc grew 0.11%, while lead fell 1.38%. SHFE nickel expanded 1%, aluminum increased 0.64%, copper rose 0.25%, tin went up 0.14%, while lead lost 0.93%, and zinc fell 0.14%.
The Consumer Price Index (CPI), a measurement of inflation, in the US increased 0.3% in April on a seasonally adjusted basis, lifted by rising gasoline, rents and healthcare costs, the US Bureau of Labor Statistics said on Friday. The CPI gained 0.4% in March.
Over the past 12 months ending April, the CPI rose 2% before seasonal adjustment, the largest 12-month increase since the period ending November 2018, according to the report. However, the rate is still below the expected 2.1%.
Excluding the volatile food and energy components, the CPI edged up 0.1% month on month in April as apparel prices dropped for a second straight month and the cost of used motor vehicles and trucks declined further. The so-called core CPI has now increased by the same margin for three months. In the 12 months through April, the core CPI increased 2.1% after gaining 2% in March.
The Fed, with a 2% inflation target, tracks the core personal consumption expenditures (PCE) price index for monetary policy. The core PCE price index increased 1.6% on a year-on-year basis in March, the smallest rise in 14 months. The PCE price index data for April will be published later this month.
Federal Reserve Bank of Boston President Eric Rosengren will give welcome remarks before the "FedListens - New England Perspectives on Fed Policymaking" conference, in Boston, Massachusetts, on Monday May 13. Fed Board Governor Richard Clarida will also speak at the conference today.