Macro Roundup (Jul 18)-Shanghai Metals Market

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Macro Roundup (Jul 18)

Data Analysis 09:19:31AM Jul 18, 2019 Source:SMM

SHANGHAI, Jul 18 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar softened on lower US bond yields and expectations that the Federal Reserve would cut interest rates, reversing some of the prior day’s rises on stronger-than-expected retail sales data.

Against a basket of other currencies, the dollar index fell 0.17% and ended at 97.217. Benchmark US 10-year yields fell 5.7 basis points to 2.063%.

LME base metals traded higher across the board as nickel climbed over 3%, lead rose 1.3%, copper increased 0.4%, zinc, aluminium and tin advanced 0.2%. SHFE metals ended mixed as nickel grew 2%, lead climbed 0.8%, tin gained 0.2%, while zinc and copper eased 0.1%, and aluminium lost 0.4%. 

According to Eurostat’s final reading of the eurozone consumer price index (CPI) report, the consumer prices came in at 1.3% on a yearly basis, bettering the flash estimate of 1.2%. While the core figures rose 1.1%, compared with the previous 0.8%.

On a monthly basis, the bloc’s CPI for June rose 0.2%, higher than the expected rise of 0.1% and May’s 0.1%. 

Construction of new houses in the US fell slightly in June and permits sank to the lowest in two years, suggesting that a sluggish US housing market has failed to gain much momentum from lower mortgage rates.

Housing starts slipped 0.9% in June to an annual pace of 1.25 million last month, the government said Wednesday. Permits to build more homes slipped 6.1% to a 1.22 million pace. Permits in June also stood about 7% lower compared to the same month a year earlier.

The Energy Information Administration (EIA) on Wednesday reported that US crude supplies fell 3.12 million barrels for the week ended July 12, the fifth consecutive week of decline, after they shrank 9.5 million barrels in the previous week. 

The EIA data also showed that gasoline inventories climbed by 3.6 million barrels, while distillate stockpiles increased by 5.7 million barrels in the week to July 12.

Day ahead

The US will release its weekly unemployment claims. 

Federal Reserve Bank of New York President John Williams is scheduled to speak before the Central Bank Research Association (CEBRA) 2019 Annual Meeting today. 

Key Words:  Macroeconomics 

Macro Roundup (Jul 18)

Data Analysis 09:19:31AM Jul 18, 2019 Source:SMM

SHANGHAI, Jul 18 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar softened on lower US bond yields and expectations that the Federal Reserve would cut interest rates, reversing some of the prior day’s rises on stronger-than-expected retail sales data.

Against a basket of other currencies, the dollar index fell 0.17% and ended at 97.217. Benchmark US 10-year yields fell 5.7 basis points to 2.063%.

LME base metals traded higher across the board as nickel climbed over 3%, lead rose 1.3%, copper increased 0.4%, zinc, aluminium and tin advanced 0.2%. SHFE metals ended mixed as nickel grew 2%, lead climbed 0.8%, tin gained 0.2%, while zinc and copper eased 0.1%, and aluminium lost 0.4%. 

According to Eurostat’s final reading of the eurozone consumer price index (CPI) report, the consumer prices came in at 1.3% on a yearly basis, bettering the flash estimate of 1.2%. While the core figures rose 1.1%, compared with the previous 0.8%.

On a monthly basis, the bloc’s CPI for June rose 0.2%, higher than the expected rise of 0.1% and May’s 0.1%. 

Construction of new houses in the US fell slightly in June and permits sank to the lowest in two years, suggesting that a sluggish US housing market has failed to gain much momentum from lower mortgage rates.

Housing starts slipped 0.9% in June to an annual pace of 1.25 million last month, the government said Wednesday. Permits to build more homes slipped 6.1% to a 1.22 million pace. Permits in June also stood about 7% lower compared to the same month a year earlier.

The Energy Information Administration (EIA) on Wednesday reported that US crude supplies fell 3.12 million barrels for the week ended July 12, the fifth consecutive week of decline, after they shrank 9.5 million barrels in the previous week. 

The EIA data also showed that gasoline inventories climbed by 3.6 million barrels, while distillate stockpiles increased by 5.7 million barrels in the week to July 12.

Day ahead

The US will release its weekly unemployment claims. 

Federal Reserve Bank of New York President John Williams is scheduled to speak before the Central Bank Research Association (CEBRA) 2019 Annual Meeting today. 

Key Words:  Macroeconomics