SHANGHAI, May 27 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.
The US dollar slipped on Tuesday as risk sentiment returned to the market amid a reopening world economy, and this subdued demand for the safe-haven currency.
LME base metals ended mostly higher overnight as copper and aluminium advanced nearly 1.2%, and nickel gained close to 0.6%. Meanwhile, tin edged lower and zinc lost 0.1%. Copper once increased as much as 2% as investors anticipated that more stimulus measures from China will bolster demand for the nonferrous metals.
SHFE nonferrous metals extended their increases for the most part last night. Lead added 1.3%, tin climbed 1%, copper grew 0.3%, aluminium rose 0.1%, zinc inched up, while nickel shed 0.3%.
Crude oil prices rose on Tuesday, lifted by growing confidence that producers are following through on commitments to cut supplies and as fuel demand picks up with coronavirus restrictions easing.
German consumer confidence recovered some of the ground lost due the coronavirus shock but it remains deep in negative territory, market-research group GfK said Tuesday.
GfK said their forward-looking monthly barometer for June showed a reading of -18.9 points, up from the May reading of -23.1 when the indicator plunged 25 points overall.
Despite the increase, -18.9 is the second-lowest value that has ever been recorded for the GfK consumer climate in Germany, GfK said.
US house prices rose in Q1 of 2020, up 1.7% according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). House prices rose 5.7% on a yearly basis. FHFA’s seasonally adjusted monthly index for March was up 0.1% from February.
“Home price growth in the first quarter outpaced annual growth from the same period a year ago as falling interest rates and shrinking inventories for sale led prices higher just prior to the crisis. Prices in the Mountain Division, encompassing the top four states by growth, grew by 8% on a year over year basis,” said Dr. Lynn Fisher, Deputy Director of the Division of Research and Statistics at FHFA.
“Because of the lag between contract signing and sale closing when our data are recorded, we judge the first quarter’s housing statistics were relatively unaffected by the COVID-19 outbreak. However, we are unable to account for any modifications or cancellations of sales later in March.”
US consumer confidence unexpectedly improved in May as the economy slowly restarted, according to data released Tuesday by The Conference Board.
The business group’s consumer confidence index rose to 86.6 this month from 85.7 in April.
“Following two months of rapid decline, the free-fall in Confidence stopped in May,” Lynn Franco, senior director of economic indicators at The Conference Board, said in a statement. “Short-term expectations moderately increased as the gradual re-opening of the economy helped improve consumers’ spirits.”
Key economic data slated for release today include profits of industrial enterprises in China for April.