Macro Roundup (Aug 13)

Published: Aug 13, 2019 08:30

Save

A roundup of global macroeconomic news last night and what is expected today

SHANGHAI, Aug 13 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The US dollar index, which measures the greenback against a basket of its counterparts, edged down on Monday, amid trade tensions between the US and China and concerns of slowing global economic growth.

US stocks fell on Monday as bond yields resumed their August downturn. The benchmark 10-year Treasury yield, which fell to its lowest since 2016 last week, dipped to 1.63%, while the spread between 2-year and 10-year Treasury yields narrowed towards its lowest level since 2007.

LME base metals closed mixed on Monday, with the biggest gain of 1.4% in zinc. Nickel gained 0.3%, tin inched up 0.1%, while aluminium slipped 0.2%, lead fell 0.4% and copper shed close to 0.5%.

SHFE base metals also saw mixed performance overnight. Zinc advanced 1.3%, aluminium rose 0.9% and tin nudged up 0.04%, while nickel lost 0.1%, copper declined 0.3% and lead dropped close to 1%.

China's new yuan-denominated loans stood at 1.06 trillion yuan in July, 397.5 billion yuan less than the same period last year, central bank data showed Monday.

The M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 8.1% year on year to 191.94 trillion yuan at the end of July, according to the People's Bank of China (PBOC), the central bank.

The M2 growth was 0.4 percentage points slower than the level at the end of June and at the same period last year.

Newly-added social financing, a measurement of funds that individuals and non-financial firms get from the financial system, stood at 1.01 trillion yuan in July, compared with 2.26 trillion yuan in June.

By the end of July, China's total outstanding social financing rose 10.7% year on year to 214.13 trillion yuan.

Day ahead

July consumer price index (CPI) from Germany and the US, ZEW August economic climate index for the Eurozone and Germany will be released today.

Macroeconomics

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

57 mins ago

Amigo Resources Reports PGM Values of Up to 7.07 ppm in Tanzania Processing Testwork

[SMM Flash] Amigo Resources reported independent laboratory results from selected Tanzanian material showing combined PGM values of 6.94–7.07 ppm, alongside residual gold values of 3.27–3.47 ppm. The company said it is assessing the integration of proprietary PGM concentration technology into its processing flowsheets to target recovery from gravity tailings and other residual material. Amigo is also evaluating a pyrometallurgical copper-matte treatment route and has mobilised a small-scale furnace for further testwork. The programme could potentially establish PGMs as a recoverable by-product from Amigo's Tanzanian polymetallic material if subsequent metallurgical work demonstrates viable recoveries. However, the reported grades relate to selected test material and processing studies and do not constitute a compliant Mineral Resource, reserve or evidence of commercial-scale PGM production. Further metallurgical testing will therefore be important in determining whether the reported PGM content can translate into an economically recoverable product stream.

57 mins ago

1 hour ago

Pan Global Reports Platinum-Palladium Mineralisation at Spain's Cármenes Project

[SMM Flash] Pan Global Resources has reported additional drilling results from its 100%-owned Cármenes Project in northern Spain, identifying platinum and palladium within a broader gold-copper-nickel-cobalt mineralised system. Hole PVD15 intersected 15 m grading 3.90 g/t gold, 0.04% copper, 0.11% nickel and 0.12% cobalt from surface, including an 8 m interval grading 0.50 g/t platinum and 0.28 g/t palladium. Within this interval, one metre returned 1.39 g/t platinum and 0.74 g/t palladium, equivalent to 2.13 g/t Pt+Pd. The mineralisation extends beyond the historical Providencia mine workings and remains open along strike and at depth, according to the company. The results provide further evidence of PGM mineralisation within the Cármenes polymetallic system and could potentially add platinum and palladium credits to the project's mineral inventory. However, the reported intersections are exploration results and do not represent a Mineral Resource, reserve or future production estimate.

1 hour ago

Platinum Heads for Weekly Loss After Sharp Rally Reverses, Palladium Also Weaker

[SMM Flash] Platinum was heading for a weekly decline on September 11 after sharp volatility during the week, while palladium was also on course for a weekly loss. Umicore's indicative platinum price rose from US$1,848/oz on September 8 to US$1,922/oz on September 9, before falling to US$1,827/oz on September 10, reversing almost US$100/oz in one day. Reuters reported that precious metals faced pressure as stronger US producer-price data reinforced expectations for higher interest rates, while geopolitical tensions and oil prices above US$100/bbl added uncertainty to the inflation outlook. The reversal highlights continued short-term volatility in the PGM complex despite tight platinum above-ground inventories. Platinum prices remain sensitive to changes in the US dollar, interest-rate expectations and investment flows, alongside underlying PGM supply-demand fundamentals. The week's movements also underline the growing divergence between short-term macro-driven trading and the longer-term structural factors supporting platinum.

1 hour ago