SHANGHAI, May 20 (SMM) – This is a roundup of global macroeconomic news last weekend and what is expected today.
The US dollar index on Friday advanced to its highest level in two weeks near 98 as the heavy selling pressure surrounding the major European currencies allowed investors to return to the relatively safer greenback.
The euro was hurt last week by Italian Deputy Prime Minister Matteo Salvini's comments that European Union rules harm his country.
Sterling fell to the lowest since January 15 after cross-party Brexit talks collapsed and concern grew about the impact Prime Minister Theresa May's likely resignation would have on Britain's exit from the EU.
Base metals, except for LME tin, ended lower across the board as LME zinc, aluminium, and nickel lost over 1%, lead slid 0.6%, and copper fell 0.4%. SHFE zinc dropped 0.88%, lead decreased 0.65%, aluminum dipped 0.52%, nickel went down 0.27%, tin fell 0.2%, and copper ended 0.17% lower.
The University of Michigan’s consumer sentiment index in May climbed to 102.4, a 15-year high, from April’s reading of 97.2. The reading for May compared to the expected 97.5.
A tight jobs market helped fuel confidence, with an unemployment rate of just 3.6% in April. The University of Michigan points out that the gains were recorded before the trade negotiations with China collapsed.
The index for consumer expectations shot higher, rising to 96 from 87.4 in April. That’s the biggest jump in expectations since December 2011.
“Those who held negative views about the impact of tariffs on the economy and pricing had values on the expectations index that were 25 points lower, and expected the year-ahead inflation rate to be 0.6 percentage points higher,” said Richard Curtin, the survey’s chief economist.
Federal Reserve Bank of New York President John Williams will give welcome remarks before a two-hour "Fed Listens" roundtable, hosted by the Federal Reserve Bank of New York on Monday May 20. Fed Vice Chairman Richard Clarida will give opening remarks before the roundtable.