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Macro Roundup (Sep 12)

Data Analysis 08:38:25AM Sep 12, 2019 Source:SMM

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

Last night

The US dollar regained losses from the previous five sessions, buoyed by an unexpected increase in US producer price for August. A retreat in the Canadian dollar amid falling US crude prices also boosted the greenback.

The dollar index, which tracks the greenback against a basket of other currencies, gained 0.3% to end at 98.63.

President Donald Trump on Wednesday tweeted that he will be delaying the increased tariffs on $250 billion in Chinese goods to October 15 from October 1 as a “gesture of good will” to China.

LME base metals closed mostly lower while SHFE metals grew for the most part. Tin was the best performer as LME tin climbed 1% with SHFE tin rising 1.2%. LME zinc advanced 0.5%, while lead lost 0.2%, aluminium fell 0.3%, copper and nickel slid 0.5%. 

SHFE zinc and aluminium gained 0.2%, lead increased 0.1%, while nickel slipped 0.2%, and copper shed 0.3%. 

US producer prices unexpectedly rose in August and underlying producer prices rebounded, but that data will not change market expectations that the Federal Reserve will cut interest rates again next week to support a slowing economy.

The Labor Department said its producer price index (PPI) for final demand edged up 0.1% last month as a jump in the cost of services offset the largest drop in the price of goods in seven months. That followed a 0.2% gain in July.

On a yearly basis, the PPI advanced 1.8% after increasing 1.7% in July. Economists polled by Reuters had forecast the PPI would be unchanged in August and rise 1.7% on a year-over-year basis.

US wholesale inventories expanded slightly in July, the government confirmed on Wednesday, suggesting inventory investment could remain a drag on economic growth in the third quarter.

The Commerce Department said wholesale inventories gained 0.2% as estimated last month. Stocks at wholesalers slipped 0.1% in June. They increased 7.1% on a year-on-year basis in July.

The Energy Information Administration (EIA) on Wednesday reported that US crude supplies fell by 6.9 million barrels for the week ended September 6. The EIA data showed weekly supply decline of 700,000 barrels for gasoline, while distillate stockpiles climbed by 2.7 million barrels.

China's outstanding total social financing (TSF) was 216.01 trillion yuan at the end of August, up 10.7% from a year earlier, the central bank said on Wednesday.

TSF includes off-balance-sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales.

In August, TSF rose to 1.98 trillion yuan from 1.01 trillion yuan in July, compared with the expected 1.6 trillion yuan.

China's new yuan-denominated loans reached 1.21 trillion yuan in August, 66.5 billion yuan less than the same period last year, central bank data showed Wednesday.

The M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 8.2% year on year to 193.55 trillion yuan at the end of August, according to the People's Bank of China.

Day ahead

Key economic data slated for release today include Germany and the US’ consumer price index for August, the European Central Bank's main refinancing rate for September, as well as the US weekly unemployment claims. 

Key Words:  Macroeconomics 

Price

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1# Silver ingots(99.99%)
Sep.20
4354.0
45.0
(1.04%)
2# Silver ingots(99.95%)
Sep.20
4339.0
45.0
(1.05%)
3# Silver ingots(99.90%)
Sep.20
4324.0
45.0
(1.05%)
Gold(99.99%)
Sep.20
345.1
1.6
(0.46%)
Gold(99.95%)
Sep.20
345.1
1.9
(0.55%)

Macro Roundup (Sep 12)

Data Analysis 08:38:25AM Sep 12, 2019 Source:SMM

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

Last night

The US dollar regained losses from the previous five sessions, buoyed by an unexpected increase in US producer price for August. A retreat in the Canadian dollar amid falling US crude prices also boosted the greenback.

The dollar index, which tracks the greenback against a basket of other currencies, gained 0.3% to end at 98.63.

President Donald Trump on Wednesday tweeted that he will be delaying the increased tariffs on $250 billion in Chinese goods to October 15 from October 1 as a “gesture of good will” to China.

LME base metals closed mostly lower while SHFE metals grew for the most part. Tin was the best performer as LME tin climbed 1% with SHFE tin rising 1.2%. LME zinc advanced 0.5%, while lead lost 0.2%, aluminium fell 0.3%, copper and nickel slid 0.5%. 

SHFE zinc and aluminium gained 0.2%, lead increased 0.1%, while nickel slipped 0.2%, and copper shed 0.3%. 

US producer prices unexpectedly rose in August and underlying producer prices rebounded, but that data will not change market expectations that the Federal Reserve will cut interest rates again next week to support a slowing economy.

The Labor Department said its producer price index (PPI) for final demand edged up 0.1% last month as a jump in the cost of services offset the largest drop in the price of goods in seven months. That followed a 0.2% gain in July.

On a yearly basis, the PPI advanced 1.8% after increasing 1.7% in July. Economists polled by Reuters had forecast the PPI would be unchanged in August and rise 1.7% on a year-over-year basis.

US wholesale inventories expanded slightly in July, the government confirmed on Wednesday, suggesting inventory investment could remain a drag on economic growth in the third quarter.

The Commerce Department said wholesale inventories gained 0.2% as estimated last month. Stocks at wholesalers slipped 0.1% in June. They increased 7.1% on a year-on-year basis in July.

The Energy Information Administration (EIA) on Wednesday reported that US crude supplies fell by 6.9 million barrels for the week ended September 6. The EIA data showed weekly supply decline of 700,000 barrels for gasoline, while distillate stockpiles climbed by 2.7 million barrels.

China's outstanding total social financing (TSF) was 216.01 trillion yuan at the end of August, up 10.7% from a year earlier, the central bank said on Wednesday.

TSF includes off-balance-sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales.

In August, TSF rose to 1.98 trillion yuan from 1.01 trillion yuan in July, compared with the expected 1.6 trillion yuan.

China's new yuan-denominated loans reached 1.21 trillion yuan in August, 66.5 billion yuan less than the same period last year, central bank data showed Wednesday.

The M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 8.2% year on year to 193.55 trillion yuan at the end of August, according to the People's Bank of China.

Day ahead

Key economic data slated for release today include Germany and the US’ consumer price index for August, the European Central Bank's main refinancing rate for September, as well as the US weekly unemployment claims. 

Key Words:  Macroeconomics