SHANGHAI, Mar 26 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.
The US dollar extended its decline on Wednesday as a $2 trillion US stimulus bill helped boost risk appetite and reduced demand for the safe haven currency. The US dollar index, which track the greenback against a basket of its peers, hit its lowest in a week.
US stocks rose for a second day, extending Tuesday’s historic rally, as the White House and Senate agreed on the massive coronavirus stimulus bill early Wednesday morning. But a tweet from Sen. Bernie Sanders coming late in the day suggested the bill could hit a few snags before a final vote.
Oil prices gained for a third day, and base metals also mostly extended their rally. LME base metals, except for aluminium, closed higher overnight. Tin surged 6.3% on the day to lead the gains, lead jumped 2.5%, zinc advanced 1.2%, copper and nickel rose 0.5%. The SHFE kept its night trading session suspended.
German lawmakers on Wednesday agreed to suspend the debt brake that limits deficit spending as part of the massive stimulus package that Berlin has announced.
On the data front, British consumer price inflation retreated in February from the previous month’s six-month high, official figures showed Wednesday, with CPI (consumer price index) inflation falling to 1.7% in February from 1.8% in January.
Business morale in Germany logged the steepest fall in March since the country’s reunification in 1990, the closely-watched Ifo Institute for Economic Research said Wednesday. The Ifo business climate index fell to 86.1 in March, the lowest level since the global financial crisis in 2009.
US crude supplies rose by 1.6 million barrels for the week ended March 20, following eight straight weeks of increases, according to data from the Energy Information Administration (EIA) released on Wednesday.
The EIA data showed supply declines of 1.5 million barrels for gasoline and 700,000 barrels for distillates.
The US will release weekly jobless claims data, fourth-quarter gross domestic product (GDP) growth and inflation data, and February wholesale inventories.
German Gfk consumer sentiment index for April is also slated for release.