SHANGHAI, Jan 23 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.
The US dollar on Wednesday fell against a basket its rivals, easing off one-month highs, as the Chinese government’s plans to contain the virus seemed to ease equity investors’ concerns over a possible pandemic.
LME base metals, except for lead, closed lower across the board on Wednesday. Zinc tumbled 2.3% to lead the losses, aluminium declined 1%, tin and copper fell close to 0.7% and nickel dipped 0.1%.
The SHFE complex, except for aluminium, traded lower overnight. Nickel dropped 1.1%, copper and zinc slipped 0.6%, tin and lead shed 0.5%, zinc
On the trade front, US President Donald Trump told CNBC on Wednesday that the European Union has “no choice” but to agree to a new trade deal. In a meeting with European Commission President Ursula von der Leyen in Davos on Tuesday, Trump again threatened to levy tariffs on European car imports in the absence of renewed trade commitments from the bloc.
The American Petroleum Institute (API) this morning reported a surprise crude oil inventory build of 1.57 million barrels for the week ending January 17, compared to analyst expectations of a 1.009-million-barrel draw in inventory.
US home sales climbed 3.6% in December, but a record-low inventory of houses on the market has caused prices to surge as affordability is worsening.
The National Association of Realtors said Wednesday that sales of existing homes rose last month to a seasonally adjusted annual rate of 5.54 million. For all of 2019, 5.34 million homes were sold — matching the 2018 level. High mortgage rates hurt sales in the first half of the last year, while lower rates boosted purchases in the second half.
The European Central Bank’s first policy meeting of the year should be closely watched today.
Economic data slated for release include US crude inventory data from the Energy Information Administration (EIA) and the eurozone’s consumer sentiment index.