SHANGHAI, Jan 21 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.
The US dollar edged lower against a basket its rivals on Monday, holding near a one-month high after last Friday’s jump on data that confirmed the US economy is holding up well. Moves were slight and volumes thin as Lunar New Year approaches in Asia and with US markets closed for Martin Luther King day on Monday.
US gold prices rose to their highest in more than a week on Monday, driven by geopolitical concerns and buying ahead of the Chinese New Year. Oil prices also hit more than one-week high on Monday, as supply concerns grew after two large crude production bases in Libya began shutting down amid a military blockade.
LME base metals, except for copper and lead, closed higher on Monday. Aluminium and nickel rose 0.6%, zinc and tin advanced close to 0.4%. The SHFE complex also traded mixed overnight. Nickel was the best performer with a 1% increase, tin gained 0.5% and zinc inched up 0.1%, while aluminium edged down 0.1%, lead shed 0.4% and copper fell close to 0.5%.
The People’s Bank of China kept its loan prime rate unchanged on Monday, sending Asian shares higher. Policymakers and business leaders are gathering in Davos, Switzerland for the annual World Economic Forum conference.
The latest ZEW economic sentiment index for the eurozone is slated for release today, while the Bank of Japan will release its quarterly outlook report and announce its interest rate decision.