SHANGHAI, Feb 11 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.
The US dollar continued to rise and hit a four-month high against the euro on Monday as concerns about the coronavirus boosted demand for safe havens. Optimistic outlook for the US economy and weak data in the eurozone made the greenback more attractive than the single currency.
LME base metals closed mixed on Monday. LME copper recovered 0.07%, nickel added 0.7%, tin climbed 1.2%, while aluminium fell 0.81%, zinc lost 0.53%, and lead slipped 0.72%.
On the data front, China consumer prices rose at their highest rate in more than eight years, official data showed Monday, with inflation more than expected on the back of Chinese New Year demand and a deadly virus outbreak.
The consumer price index (CPI), a key gauge of retail inflation, came in at 5.4% in January, up from 4.5% in December, with prices of pork and fresh vegetables pushing up costs.
"The year-on-year increase has been affected not only by Spring Festival-related factors but... by the new coronavirus as well," said the National Bureau of Statistics on Monday.
"Some food supplies may spoil before shipping to large cities due to the disruption of transportation and other lockdown measures, especially for fruits, vegetables and livestock," said Lu Ting of Nomura in a research note. "People also tend to hoard food and other supplies in this kind of situation. The hoarding will most likely push up prices."
The Sentix eurozone investor confidence report for February came in at 5.2, much lower than January’s 7.6 print, as investor grew concerned about the economic outlook amid the uncertainty created by the coronavirus outbreak in China.
The investor sentiment index for Germany, an economy that is heavily dependent on trade, fell only 2.1 points.
Key economic data slated for release today include the UK industrial output for December, and data from the US job openings and labour turnover survey (JOLTS).