SHANGHAI, May 22 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The dollar index climbed close to 90, the highest in nearly a month, supported by US-China trade tension and higher US Treasury yields.
Gold prices dropped to the lowest in more than two weeks, as the dollar increased along with equities and other riskier assets ahead the latest meeting minutes from the US Federal Reserve.
Base metals ended mostly higher as LME nickel climbed 0.88%, lead rose 0.47%, zinc gained 0.45%, aluminium went up 0.22%, tin inched up, while copper slid 0.46%. SHFE lead jumped 0.37%, nickel advanced 0.1%, zinc went flat, while copper lost 0.57%, aluminium dipped 0.53%, and tin edged down.
Addressing the Economic Club of New York, President of the Boston Reserve Bank Eric Rosengren said that the escalating trade war between China and the US could increase pressure on the overall economy, and that the conflict is "all the more reason to keep rate increases on hold".
"I see no clarion call to alter current policy in the near term," he added. "The Fed can afford to wait to see if that forecast does indeed materialise."
Sales of existing US homes fell for the second straight month in April as prices increased despite a greater number of homes for sale, according to an industry survey on Tuesday.
The unexpected dip occurred despite low mortgage rates and continued job growth, suggesting that sales should recover, according to the National Association of Realtors.
Sales lost 0.4% from March to a seasonally-adjusted rate of 5.19 million units, missing expectations for a 2.7% increase. On the year, sales were 4.4% lower.
US weekly crude inventory data by the Energy Information Association and the Federal Open Market Committee May meeting minutes are due today.