Macro Roundup (Mar 24)

SHANGHAI, Mar 24 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.

Last night

The US dollar dropped against a basket of currencies overnight after the US Federal Reserve the Federal Reserved announced aggressive asset purchases to support markets.

The Fed said the program will run in the “amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”

The Fed’s move also bolstered US oil prices, which jumped more than 3%, paring losses from earlier in the session, but failed to stem a decline in the stock markets.

Overnight on Wall Street, stocks fell sharply as US lawmakers failed to push through massive fiscal stimulus to curtail the economic blow from the coronavirus. For a second time in less than 24 hours, a bill that would authorise giant fiscal spending to stimulate the economy failed to clear a key procedural hurdle.

London base metals closed lower across the board overnight. Nickel dived 3.7% on the day to lead the losses, tin tumbled 2.8%, copper plunged 2.1%, zinc dropped 1.5%, lead fell 1.2% and aluminium slipped 1.1%. The Shanghai Futures Exchange kept its night trading session suspended.

The fast-spreading COVID-19 has now infected more than 350,536 people worldwide, according to Johns Hopkins University, and killed at least 15,328 people.

Data published Monday showed eurozone consumer confidence worsened in March. The European Commission said a flash estimate for eurozone consumer morale decreased to -11.6 this month from -6.6 in February.

Day ahead

Preliminary purchasing managers’ indexes (PMIs) will be released globally, while Germany is expected to unveil new measures to mitigate the economic impact of the coronavirus.