SHANGHAI, May 31 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar came off from earlier highs on Thursday as investors shifted their focus from robust growth in US gross domestic product to easing inflationary pressure.
LME base metals closed mixed on Thursday, with the biggest loss of 1.3% in lead. Aluminium fell 0.8%, copper declined 0.6% while tin nudged up 0.03%, nickel gained 0.5% and zinc rose 0.7%.
SHFE base metals, except for zinc and nickel, traded lower overnight. Copper slipped 0.4%, tin shed 0.3%, lead and aluminium lost 0.2%.
Updated data on first-quarter US GDP indicated that the economy expanded by 3.1% on an annualised basis over the three months, the Commerce Department reported Thursday.
However, the core personal consumption expenditure (PCE) price index, a gauge of inflation tracked by the Federal Reserve increased just 1% last quarter, instead of the previously reported 1.3%. Manufacturing, retail sales, housing and exports also dropped in April.
US home shoppers signed 1.5% fewer contracts to purchase existing homes in April, according to the National Association of Realtors’ Pending Home Sales Index. Pending home sales increased 3.9% in March.
The number of Americans filing applications for unemployment benefits increased moderately last week, suggesting the labour market remains on solid footing even as the economy slows.
Initial claims for state unemployment benefits rose 3,000 to a seasonally adjusted 215,000 for the week ended May 25, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported.
Oil prices fell sharply on Thursday on a smaller-than-expected decline in US crude inventories and fears of a global economic slowdown due to the US-China trade war.
The US Energy Information Administration (EIA) said crude stockpiles fell nearly 282,000 barrels in the week ended May 24, less than the expected 857,000-barrel decline and well below the 5.3 million-barrel drawdown the American Petroleum Institute (API) reported late Wednesday.
Economic data slated for release today include China’s factory activity, Germany’s retail sales and consumer inflation as well as US personal spending, factory activity and consumer confidence.