SHANGHAI, Feb 12 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.
The US dollar eased off four-month highs against a basket of its rivals on Tuesday as risk appetite improved following a slowdown in the number of new coronavirus cases in China and gradual re-openings of the country’s factories.
LME base metals closed higher across the board overnight. Lead added 2.5% on the trading day to lead the gains, aluminium jumped 1.9%, nickel advanced 1.6%, copper rose 1.2%, zinc gained 0.4% and tin climbed 0.2%.
Their counterparts on the SHFE, except for zinc, turned higher on Tuesday. Nickel added 1.6% to be the biggest gainer, lead, tin and aluminium advanced about 0.7% and copper rose 0.2%. The SHFE has suspended night time trading since last week until further notice.
China’s foremost medical adviser on the coronavirus outbreak said on Tuesday the epidemic may peak this month. The death toll in mainland China from the outbreak has climbed past 1,000, but the number of new confirmed cases fell.
Investors overnight also digested the first day of Federal Reserve Chairman Jerome Powell’s testimony to lawmakers about the state economic growth and employment in the US.
With risks like trade policy uncertainty receding and global growth stabilising, Powell signaled he saw no reason to adjust US interest rates, unless new developments cause a “material reassessment” to the current outlook. The central bank is “closely monitoring” the coronavirus situation for a potential hit to China and the global economy, but it is “too early to say” how the coronavirus will ultimately impact the US economy, Powell’s testimony also noted.
On the data front, the American Petroleum Institute (API) reported that US crude supplies rose by 6 million barrels for the week ended February 7, according to sources. The API data also showed a stockpile climb of 1.1 million barrels for gasoline, while distillate stocks fell by 2.3 million barrels.
The first estimate of UK fourth-quarter economic growth showed that GDP (gross domestic product) was flat quarter-on-quarter in the last three months of 2019.
US weekly crude inventory data from the Energy Information Administration (EIA) and China’s January load data are slated for release today.