Macro Roundup (Jun 4)-Shanghai Metals Market

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Macro Roundup (Jun 4)

Data Analysis 09:02:44AM Jun 04, 2019 Source:SMM

SHANGHAI, Jun 4 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar sharply extended its declines on Monday, lowered by greater expectations of a Fed rate cut this year, after a Fed official’s comments and weak US manufacturing data in May.

LME base metals closed mixed on Monday, with the biggest loss of 2% in zinc. Aluminium dropped 1.1% and nickel fell 0.9% while lead gained 0.4%, copper advanced 0.8% and tin climbed 2.3%.

SHFE base metals performed similarly. Zinc tumbled 1.5%, nickel slipped 1.2%, aluminium declined 0.6% and lead dipped 0.1% while copper rose 0.3% and tin increased by 0.4%.

St Louis Federal Reserve President James Bullar on Monday said that an interest rate cut "may be warranted soon", given growing economic risks from global trade tension as well as weak US inflation.

A national survey showed that US manufacturing slowed further in May to its weakest pace in more than two and a half years, defying expectations for a modest rebound.

The Institute for Supply Management said its US manufacturing purchasing managers’ index (PMI) declined to 52.1 from 52.8 in April, marking the lowest since October 2016. Wall Street economists polled by Reuters had a consensus forecast of 53.

Readings above 50 indicate expansion, while those below that signal contraction.

US manufacturing PMI readings for May from IHS Markit also fell short of expectations, which stood at 50.5, missing the forecasts for an unchanged pace from April at 50.6.

China’s factory activity expanded at a steady but modest pace in May, a private survey showed. An official gauge on factory activity last week showed conditions deteriorating as both domestic and external demand slackened.

The Caixin PMI on Monday showed a modest expansion at 50.2 in China’s manufacturing activity last month, unchanged from April, and above economists’ expectations of 50.

"The ongoing China-US trade dispute, restrictive state policies, a weak automotive market and generally subdued global demand conditions were all cited as key factors likely to weigh on production over the next year," a statement accompanying the Caixin survey said.

Factory activity in Germany and the Eurozone both contracted in an unchanged pace last month, at 44.3 and 47.7, respectively, showed manufacturing PMI figures from Markit. This met expectations.

Day ahead

The Eurozone will release its unemployment rate for April and consumer inflation for May, while the US will publish its durable goods orders in April and weekly crude inventory data from the American Petroleum Institution (API).

Key Words:  Macroeconomics 

Macro Roundup (Jun 4)

Data Analysis 09:02:44AM Jun 04, 2019 Source:SMM

SHANGHAI, Jun 4 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar sharply extended its declines on Monday, lowered by greater expectations of a Fed rate cut this year, after a Fed official’s comments and weak US manufacturing data in May.

LME base metals closed mixed on Monday, with the biggest loss of 2% in zinc. Aluminium dropped 1.1% and nickel fell 0.9% while lead gained 0.4%, copper advanced 0.8% and tin climbed 2.3%.

SHFE base metals performed similarly. Zinc tumbled 1.5%, nickel slipped 1.2%, aluminium declined 0.6% and lead dipped 0.1% while copper rose 0.3% and tin increased by 0.4%.

St Louis Federal Reserve President James Bullar on Monday said that an interest rate cut "may be warranted soon", given growing economic risks from global trade tension as well as weak US inflation.

A national survey showed that US manufacturing slowed further in May to its weakest pace in more than two and a half years, defying expectations for a modest rebound.

The Institute for Supply Management said its US manufacturing purchasing managers’ index (PMI) declined to 52.1 from 52.8 in April, marking the lowest since October 2016. Wall Street economists polled by Reuters had a consensus forecast of 53.

Readings above 50 indicate expansion, while those below that signal contraction.

US manufacturing PMI readings for May from IHS Markit also fell short of expectations, which stood at 50.5, missing the forecasts for an unchanged pace from April at 50.6.

China’s factory activity expanded at a steady but modest pace in May, a private survey showed. An official gauge on factory activity last week showed conditions deteriorating as both domestic and external demand slackened.

The Caixin PMI on Monday showed a modest expansion at 50.2 in China’s manufacturing activity last month, unchanged from April, and above economists’ expectations of 50.

"The ongoing China-US trade dispute, restrictive state policies, a weak automotive market and generally subdued global demand conditions were all cited as key factors likely to weigh on production over the next year," a statement accompanying the Caixin survey said.

Factory activity in Germany and the Eurozone both contracted in an unchanged pace last month, at 44.3 and 47.7, respectively, showed manufacturing PMI figures from Markit. This met expectations.

Day ahead

The Eurozone will release its unemployment rate for April and consumer inflation for May, while the US will publish its durable goods orders in April and weekly crude inventory data from the American Petroleum Institution (API).

Key Words:  Macroeconomics