SHANGHAI, Jun 18 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.

The US dollar continued to move higher on Wednesday as investors safe haven demand increased amid concerns about the coronavirus pandemic with a surge in cases in some US states. 

Federal Reserve chairman Jerome Powell doused some market optimism with a bleak US economic picture, reinforcing hopes for continued policy support. 

He said that a full US economic recovery will not occur until Americans are sure the pandemic has been brought under control.

Overnight, LME and SHFE base metals extended their increases for the most part, with LME zinc leading the gains with a rise of 1.05%. Copper grew 0.96%, aluminium added 0.22%, tin climbed 0.53%, lead gained 1.02%, while nickel slipped 1.57%.

SHFE copper advanced 0.45%, zinc went up 0.97%, lead rose 0.77%, tin edged up 0.01%, while nickel shed 0.32% and aluminium eased 0.65%. Rebar climbed 0.42% while stainless steel decreased 0.2%.

On the data front, the US housing starts rose 4.3% to a seasonally adjusted annual rate of 974,000 units in May, from a five-year low of 934,000 in April, the Commerce Department said Wednesday. It was the first increase since January.

Although the increase was less than the expected rise to a 1.13 million rate, a sharp rise in builder permits suggested the housing market was starting to emerge from the coronavirus crisis. Permits to build new houses jumped 14.4 % to a 1.22 million annual pace in May. 

Crude oil prices fell slightly Wednesday amid rising US crude stockpiles as well as renewed coronavirus fears.

Commercial crude oil inventories in the US increased by 1.2 million barrels in the week ended June 12, the Energy Information Administration (EIA) announced on Wednesday. This reading came in higher than the market expectation for a decrease of 0.15 million barrels. The American Petroleum Institute (API) on Tuesday reported a rise of nearly 3.9 million barrels.

EIA data also showed that total motor gasoline inventories fell by 1.7 million barrels last week and were about 10% above the five-year average for this time of year. 

Key economic data slated for release today include the US weekly unemployment claim. The Bank of England is expected to expand its quantitative easing program on Thursday, and the US Fed Chairman Jerome Powell will testify Tuesday before the Senate Committee on Banking, Housing, and Urban Affairs.