SHANGHAI, Aug 23 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The dollar fell but moved within narrow ranges as investors awaited a possible announcement from the Federal Reserve at this week’s Jackson Hole event to address the worsening global economic outlook.

The dollar index, which tracks the greenback against a basket of other currencies, slipped some 0.1% and finished at 98.22.

Base metals, except for SHFE nickel, closed lower across the board. LME zinc fell 2.1%, nickel lost 0.9%, aluminium slid 0.7%, copper declined 0.6%, lead dropped 0.5%, and tin dipped 0.3%.

SHFE zinc shed 0.9%, aluminium lost 0.5%, lead declined 0.4%, copper and tin ended 0.3% lower, while nickel went flat. 

US manufacturing purchasing managers index (PMI) dropped below the 50 mark for the first time in nearly a decade at 49.9 and missed the market expectation of 50.5, according to the IHS Markit's report. 

"August’s survey data provides a clear signal that economic growth has continued to soften in the third quarter," said Tim Moore, Economics Associate Director at the IHS Markit. "The PMIs for manufacturing and services remain much weaker than at the beginning of 2019 and collectively point to annualised GDP growth of around 1.5%."

Markit also reported that Germany's factory sector remained in contraction, raising concerns over the global economy. The German IHS Markit PMI for manufacturing rose marginally to 43.6 in August, from 43.2 in July.

Meanwhile, services PMI hit a seven-month low level of 54.4 as against the previous month’s reading of 54.5 and 54 anticipated.

“Germany remains a two-speed economy, with ongoing growth of services just about compensating for the sustained weakness in manufacturing. Although improving slightly, the survey’s output data haven’t changed enough to dispel the threat of another slight contraction in GDP in the third quarter, especially given the deterioration in the forward-looking indicators,” commented by Phil Smith, principal economist at IHS Markit.

The number of Americans filing applications for unemployment benefits fell sharper than expected last week, suggesting the labour market was holding firm despite a manufacturing slowdown and concerns the economy is on a path toward recession.

Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 209,000 for the week ended August 17, the Labour 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, edged up 500 to 214,500 last week.

Day ahead

The US will release data on its new home sales for July and the weekly change in oil rig count.