SHANGHAI, Apr 23 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.
The US dollar declined on Wednesday, giving up some gains from the previous day, as oil prices bounced back and eased investors demand for safe havens. But the greenback remained well supported amid persisted concerns about the uncertainty around the coronavirus crisis
LME base metals closed mixed Wednesday as an oil price rebound soothed market sentiment. Aluminium led the gains with a rise of 2.01%. Copper advanced 1.63%, tin added 0.17%, while nickel slumped 1.81%, zinc dipped 0.52%, and lead shed 0.03%.
SHFE nonferrous metals also traded on a mixed note. Zinc, aluminium and lead managed to rebound into the green and closed the day 0.6%, 0.5% and 0.3% higher, respectively. Copper, tin and nickel recovered some ground from earlier losses, but still finished the day substantially lower, down 1.5%, 2.4% and 3%, respectively.
US oil futures ended sharply higher Wednesday, rebounding from a 21-year low, prompted by s declines in US crude output and as a smaller-than-expected weekly climb in US gasoline stockpiles.
June West Texas Intermediate crude rose $2.21, or 19.1%, on Wednesday to settle at $13.78 a barrel on the New York Mercantile Exchange.
The US Energy Information Administration (EIA) reported that US crude inventories rose 15 million barrels for the week ended April 17 to 518.6 million barrels. That marked a 13th straight weekly climb and followed a record weekly increase of 19.2 million barrels a week earlier.
Meanwhile, gasoline supply edged up by 1 million barrels and distillate stockpiles added 7.9 million barrels, the EIA said. These compared with an expected increase of 4.55 million barrels for gasoline and 3.77 million for distillates.
European consumer confidence tumbled for April towards the record lows seen during the financial crisis in 2009 as the continent braces itself for a deep recession caused by the COVID-19 lockdowns.
The European Commission on Wednesday said its gauge of consumer confidence for the eurozone fell to -22.7, down from -11.6 in March.
US house prices rose in February, up 0.7% from the previous month, according to the Federal Housing Finance Agency (FHFA) house price index. On a yearly basis, house prices increased 5.7% in February. The previously reported 0.3% increase for January 2020 was revised upward to 0.5%.
“US house prices posted a strong increase in February," according to Dr. Lynn Fisher, deputy director of the division of research and statistics at FHFA.
“The growth in home prices coincides with other data showing robust housing market activity in early 2020 preceding the current crisis. House prices had positive monthly gains in every census division. Transactions still do not reflect much, if any, influence from the COVID-19 outbreak as of February."
Key economic data slated for release today include the German Gfk consumer confidence for May, the April Markit manufacturing PMI for Germany, the eurozone and the US, as well as the US weekly unemployment claims.
The US House of Representatives will pass Congress’ latest coronavirus aid bill on Thursday, paving the way for almost $500 billion more in economic relief amid the pandemic.