SHANGHAI, Feb 19 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.
The US dollar rose on Tuesday to its highest in nearly three years against the euro, which was weighed by a German survey showing slumping investor confidence in Europe's largest economy.
LME base metals fell for the most part. Nickel lost 2%, zinc fell 1.5%, tin slipped 1.1%, copper shed 1%, while aluminium added 0.3%, and lead grew 0.8%. The SHFE night trading session remained suspended to contain the spread of the coronavirus.
Germany's ZEW research institute said in its monthly survey that investors' mood deteriorated far more than expected in February, on worries the virus outbreak would dampen world trade.
The ZEW indicator for economic sentiment for Germany fell to 8.7 from 26.7 in January. Economists had expected a drop to 21.5.
The survey adds to expectations that Europe’s biggest economy will continue to lose momentum in the first half of 2020 as its manufacturers linger in a recession prompted by a reduction in exports.
“The feared negative effects of the coronavirus epidemic in China on world trade have been causing a considerable decline of the indicator of economic sentiment for Germany,” said ZEW President Achim Wambach.
“Expectations regarding the development of the export-intensive sectors of the economy have dropped particularly sharply,” he added.
Declines were also reflected, although less pronounced, in the wider eurozone with the 19-country currency union's economic sentiment assessed 15.2 lower, at 10.4 in February.
Inflation expectations in the eurozone were also dragged down, falling 13.7 to 4.7.
Key economic data slated for release today include the US building permits, housing starts and producer price index (PPI) for January, as well as its weekly crude oil change surveyed by the American Petroleum Institute (API).