SHANGHAI, Jun 23 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead.
The US dollar fell on Monday, edging down from last week's two-and-a-half-week highs, as growing expectations of economic recovery from the coronavirus pandemic lifted investors risk appetite. Fears of a second wave of the pandemic did little to dampen market sentiment.
Overnight, LME and SHFE base metals closed mostly higher. LME copper led the gains with a rise of 1.46%, lifted by reduced LME inventories and robust demand from the world’s largest consumer China. Copper inventories across LME-approved warehouses came in at 233,400 mt, down more than 15% from May 13.
LME aluminium added 0.95%, zinc increased 0.68%, tin added 0.18%, while nickel slipped 0.86% and lead lost 0.39%.
SHFE copper advanced 0.44%, aluminium increased 0.96%, zinc expanded 0.68%, tin climbed 0.31%, while lead dropped 0.41% and nickel dipped 0.93%. Rebar continued to decline by 0.72%, with stainless steel easing 0.15%.
On the data front, existing-home sales in the US occurred at a seasonally adjusted annual pace of 3.91 million in May, the National Association of Realtors reported Monday. It was the lowest level since July 2010, as the coronavirus pandemic continued to weigh on the US real-estate market.
Compared with last year, sales were down 26.6% in May.
“Home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year-ago figures in the second half of the year,” Lawrence Yun, chief economist for the National Association of Realtors, said in the report.
Eurozone consumer confidence index rose more than expected in June, rising by 4.1 points to -14.7, a flash estimate from the European Commission showed on Monday.
Governments gradually eased lockdown restrictions imposed in March against the coronavirus pandemic, and this accounted for the jump in consumer confidence.
China kept its benchmark lending rate unchanged for the second straight month at its June fixing on Monday, in line with market expectations. The 1-year loan prime rate was left at 3.85%, with the 5-year loan prime rate also stable at 4.65%.
Key economic data slated for release today include the US new home sales for May, and the Markit manufacturing purchasing managers' indexes (PMIs) for Germany, the eurozone and the US in June.
