SHANGHAI, Oct 17 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.
The US dollar weakened for a second straight day to month lows against a basket of its rivals on Wednesday after bleak US retail sales data painted a gloomy picture of the economy and supported the case for further interest rate cuts by the Federal Reserve.
The British pound swung around five-month highs amid a blizzard of contradictory headlines about whether Britain and the European Union were on the verge of agreeing a Brexit deal.
A weaker US dollar, coupled with hopes that OPEC will extend supply cuts, buoyed oil prices on Wednesday.
LME base metals, except for lead and tin, closed lower on Wednesday. Nickel led the decline with a 3.6% loss, copper dropped 0.9%, zinc shed 0.3%, and aluminium dipped 0.1%.
The SHFE base metals saw similar performance overnight. Nickel slipped 1.8%, copper declined 0.5%, and zinc lost 0.4%, while aluminium inched up 0.1%, tin rose 0.9%, and lead advanced 1%.
Meanwhile, tensions between the US and China heated up once again on Wednesday as China threatened countermeasures to a US bill supporting protests in Hong Kong.
US retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy.
The Commerce Department said Wednesday that US retail sales dropped 0.3% last month as households slashed spending on building materials, online purchases and especially automobiles.
Eurozone inflation slowed in September by more than previously estimated to its lowest pace in nearly three years, the European Union statistics agency said on Wednesday.
Eurostat said consumer prices in the 19-country currency area grew by 0.8% on the year, revising down its earlier estimate of a 0.9% rate.
A separate release from Eurostat showed that the bloc’s trade surplus with the rest of the world rose to €14.7 billion in August, from €11.9 billion the previous year, as euro zone’s imports dropped more than its declining exports.
US data on crude inventories, jobless claims, building permits and housing starts, as well as industrial output are slated for release today.