Macro Roundup (Jul 12)-Shanghai Metals Market

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Macro Roundup (Jul 12)

Data Analysis 09:29:36AM Jul 12, 2019 Source:SMM

SHANGHAI, Jul 12 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar slipped to a week-low after Federal Reserve Chair Jerome Powell’s downbeat comments on the US economy bolstered expectations of an interest rate cut later this month.

But the greenback trimmed losses against the yen and euro, after data showed that US underlying consumer prices rose more than expected in June, with solid gains in the costs of a range of goods and service

Base metals ended mixed as LME tin gained 0.61%, lead rose 0.33%, nickel climbed 0.81%, while copper lost 0.46%, alumimium fell 1.57%, and zinc slid 0.52%. SHFE copper advanced 0.13%, tin increased 0.27%, lead went up 0.09%, nickel expanded 0.69%, while zinc dipped 0.44%, and aluminum fell 0.72%. 

The US Labor Department said on Thursday that its consumer price index (CPI) excluding the volatile food and energy components rose 0.3% in June. This was the largest increase since January 2018 and followed four straight monthly gains of 0.1%. 

Core CPI received a boost from gains in prices for apparel, used cars and trucks, as well as household furnishings.

Overall CPI edged up 0.1% last month, held back by cheaper gasoline and food prices. It increased 1.6% year-on-year in June after rising 1.8% in May.

“This month’s bounce in goods inflation was due primarily to two of the more volatile categories in the series: vehicles and apparel,” said senior US economist Eric Winograd of global asset management firm AllianceBernstein. 

“Both had been negative for the last few months and so the bounce this month is more likely payback for previous weakness rather than the start of a new trend,” added Winograd.

The number of Americans filing applications for unemployment benefits dropped to a three-month low last week, suggesting sustained labour market strength that could support a slowing economy.

Initial claims for state unemployment benefits declined 13,000 to a seasonally adjusted 209,000 for the week ended July 6, the lowest level since April, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported.

The four-week moving average of initial claims, considered a better measure of labour market trends as it irons out week-to-week volatility, fell 3,250 to 219,250 last week.

Consumer prices in Germany rose more quickly than expected last month, revised data showed. The Federal Office of Statistics (Destatis) confirmed that consumer prices rose by 0.3% on the month and 1.6% on the year in June. In May, prices rose by 1.4% annually.

Costlier package holidays accounted for CPI gains in June, which rose by 6.1% following a 9% drop in the month before, influenced by the late Whitsun holiday this year.

Day ahead

China will release its social financing, M2 money supply, and trade balance for June, and the US will publish data on its producer price index (PPI) for June. 

Key Words:  Macroeconomics 

Price

more
1# Silver ingots(99.99%)
Jul.18
3816.0
102.0
(2.75%)
2# Silver ingots(99.95%)
Jul.18
3801.0
102.0
(2.76%)
3# Silver ingots(99.90%)
Jul.18
3786.0
102.0
(2.77%)
Gold(99.99%)
Jul.18
316.9
3.1
(1.00%)
Gold(99.95%)
Jul.18
316.8
3.2
(1.02%)

Macro Roundup (Jul 12)

Data Analysis 09:29:36AM Jul 12, 2019 Source:SMM

SHANGHAI, Jul 12 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar slipped to a week-low after Federal Reserve Chair Jerome Powell’s downbeat comments on the US economy bolstered expectations of an interest rate cut later this month.

But the greenback trimmed losses against the yen and euro, after data showed that US underlying consumer prices rose more than expected in June, with solid gains in the costs of a range of goods and service

Base metals ended mixed as LME tin gained 0.61%, lead rose 0.33%, nickel climbed 0.81%, while copper lost 0.46%, alumimium fell 1.57%, and zinc slid 0.52%. SHFE copper advanced 0.13%, tin increased 0.27%, lead went up 0.09%, nickel expanded 0.69%, while zinc dipped 0.44%, and aluminum fell 0.72%. 

The US Labor Department said on Thursday that its consumer price index (CPI) excluding the volatile food and energy components rose 0.3% in June. This was the largest increase since January 2018 and followed four straight monthly gains of 0.1%. 

Core CPI received a boost from gains in prices for apparel, used cars and trucks, as well as household furnishings.

Overall CPI edged up 0.1% last month, held back by cheaper gasoline and food prices. It increased 1.6% year-on-year in June after rising 1.8% in May.

“This month’s bounce in goods inflation was due primarily to two of the more volatile categories in the series: vehicles and apparel,” said senior US economist Eric Winograd of global asset management firm AllianceBernstein. 

“Both had been negative for the last few months and so the bounce this month is more likely payback for previous weakness rather than the start of a new trend,” added Winograd.

The number of Americans filing applications for unemployment benefits dropped to a three-month low last week, suggesting sustained labour market strength that could support a slowing economy.

Initial claims for state unemployment benefits declined 13,000 to a seasonally adjusted 209,000 for the week ended July 6, the lowest level since April, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported.

The four-week moving average of initial claims, considered a better measure of labour market trends as it irons out week-to-week volatility, fell 3,250 to 219,250 last week.

Consumer prices in Germany rose more quickly than expected last month, revised data showed. The Federal Office of Statistics (Destatis) confirmed that consumer prices rose by 0.3% on the month and 1.6% on the year in June. In May, prices rose by 1.4% annually.

Costlier package holidays accounted for CPI gains in June, which rose by 6.1% following a 9% drop in the month before, influenced by the late Whitsun holiday this year.

Day ahead

China will release its social financing, M2 money supply, and trade balance for June, and the US will publish data on its producer price index (PPI) for June. 

Key Words:  Macroeconomics