SHANGHAI, Dec 3 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.
The US dollar dropped to the lowest in more than one week on Monday against a basket of its rivals after data showed US factory activity contracted in November. The ISM manufacturing index fell to 48.1 in November, below an expected 49.4.
Encouraging data out of China, the world’s second biggest economy, boosted market sentiment earlier in the session. Chinese factory activity expanded at the quickest pace in almost three years in November, a private business survey showed on Monday, following upbeat official data over the weekend.
China’s Caixin manufacturing Purchasing Managers’ Index (PMI) came in at 51.8 in November, the strongest since December 2016. The index had been expected to fall to 51.4 from 51.7 in October.
LME base metals closed mixed on Monday. Zinc and lead dropped 2.1%, and copper shed 0.4%, while nickel and tin gained 0.3%, and aluminium added 1.8% to become the outperformer.
The SHFE complex, except for aluminium, drifted lower overnight. Lead led the losses with a 1.4% decline, zinc fell 0.9%, nickel slipped 0.4%, tin lost 0.1%, and copper dipped 0.06%.
In Europe meanwhile, eurozone manufacturing activity shrank for the 10th month in a row in November, official statistics showed on Monday. However, IHS Markit reported the worst may now be over for the bloc’s battered factories.
US President Donald Trump on Monday unexpectedly announced plans to reimpose tariffs on steel and aluminium from Argentina and Brazil, which also hurt market sentiment.
The economic calendar looks light today, with no key data slated for release.