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Macro Roundup (Jul 9)
Jul 9,2019 09:38CST
data analysis
Source:SMM
A roundup of global macroeconomic news last night and what is expected today

SHANGHAI, Jul 9 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar held on to gains from last Friday, hovering at a three-week high, as investors continued to reappraise the Federal Reserve interest rate outlook in the wake of last week's nonfarm payrolls report.

Base metals traded mixed as LME zinc lost 1.16%, copper fell 0.31%, aluminium closed flat, while nickel gained 1.97%, tin rose 1.01%, and lead grew 0.8%. SHFE zinc declined 0.46%, copper eased 0.13%, lead fell 0.53%, while tin expanded 0.41%, aluminium gained 0.11%, and nickel climbed 1.51%. 

China's foreign exchange reserves rose US$18.23 billion, or 0.6% on the month in June to US$3.119 trillion, said the State Administration of Foreign Exchange (SAFE) on Monday.

Wang Chunying, a spokesperson for the SAFE, attributed June's rise to various factors, including exchange rate fluctuations and changes in asset prices.

Despite mounting external uncertainties and volatility, the Chinese economy has maintained overall stability and run within a reasonable range so far this year, Wang said, stressing that China's foreign exchange market has maintained a balance between supply and demand.

German industrial production edged higher on the month in May, according to the latest figures released by Destatis.

Industrial output rose 0.3% in May, compared with an expected increase of 0.4% and a revised 2% drop in the previous month. 

On the year, however, industrial production fell 3.7% in May, an improvement from the 2.3% decline in April.

Production in industry excluding energy and construction inched up 0.9% in May. Within industry, the production of intermediate goods fell 0.5%, while the production of capital goods rose 2% and the production of consumer goods climbed 1.1%.

The increase in monthly production does not signal the end of the problems for Germany's manufacturers, according to Andrew Kenningham, chief Europe economist at Capital Economics.

"On the contrary, it now looks almost certain that industrial production declined in the second quarter overall, contributing to a sharp slowdown in German GDP growth, if not an outright contraction,” he said.

Other figures from Destatis showed that German exports were up 1.1% on the month in May, while imports fell by 0.5% on the month. The trade balance widened to €20.6 billion in May from €17.9 billion in April.

Eurozone investor confidence fell to -5.8 in July from -3.3 in June, the lowest since November 2014, lowering expectations of a rebound from the de-escalation of trade tensions, survey data from Sentix showed on Monday.

Day ahead

China will release its social financing and M2 money supply for June, and the US will publish data on its job vacancies in May by the Labor Department’s Job Openings and Labor Turnover Survey (JOLTs).

Macroeconomics

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