SHANGHAI, May 7 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.
The US dollar continued to rebound on Wednesday, as investors turned to the safe-haven currency in the wake of dire global economic data. The greenback advanced to its highest in more than a week against a basket of major currencies.
US President Donald Trump said Wednesday the coronavirus task force will keep working “indefinitely,” reversing his suggestion a day earlier that it would be phased out in coming weeks.
LME base metals ended higher for the most part overnight, with zinc leading the gains with a rise of 3.49%. Copper added 0.82%, nickel climbed 2.54%, tin edged up 0.1%, while aluminum shed 0.5% and lead aliped 0.27%.
SHFE nonferrous metals mostly held onto gains during Wednesday’s night trading session, which resumed for the first time after the Chinese New Year holiday. Copper climbed 0.45%, zinc went up 1.34%, lead increased 1.02%, nickel grew 2.42%, while tin and aluminium inched down. Rebar added 0.68% and stainless steel advanced 1.96%.
Oil futures settled lower Wednesday, with the US benchmark snapping a five-session streak of gains, weighed by concerns over tightening storage capacity even though weekly crude inventories rose less than expected and domestic production fell.
The EIA reported Wednesday that US crude inventories rose 4.6 million barrels for the week ended May 1. This marked a 15th consecutive weekly rise, but was smaller than the expected build of 8.7 million barrels.
US private sector companies shed 20.2 million jobs in April as many were forced to shutter during a nationwide shutdown to slow the coronavirus, underscoring the biggest crisis for American workers and the US labour market in nearly a century.
According to data from ADP, small employers—those with one to 49 workers—culled 6 million jobs in April. Mid-sized enterprises with 50 to 499 employees shed 5.3 million jobs, and large businesses with 500 employees or more axed 8.9 million jobs.
The eurozone retail sales collapsed in March as lockdowns began to come into effect. According to Eurostat, in seasonally adjusted terms retail sales volumes fell at a month-on-month pace of 11.2%. Economists had forecast a dip of 0.1%.
In comparison to the same month a year ago, retail sales fell by a similar amount, dropping by 9.2%.
The volume of retail trade for non-food products narrowed the most, by 23.1%, followed by automotive fuels with 20.8%. But retail trade volume for food, drinks and tobacco rose 5.0% on a monthly basis in March.
Key economic data slated for release today include China’s Caixin service purchasing managers' index (PMI) and trade balance for April, the US weekly unemployment claims and the German industrial output for March.