Macro Roundup (Jun 30)

SHANGHAI, Jun 30 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

The US dollar started the week on a negative footing and edged lower on Monday. Market sentiment was lifted as the European Union is preparing to open its borders to travellers from 14 countries after months of lockdown.

Chinese citizens will be allowed into the EU in principle, but only once China lifts its ban on EU citizens.

Changes to the border closures in the EU will be made on July 1 despite a sharp rise in global coronavirus cases.

Overnight, LME and SHFE base metals closed higher across the board. SHFE zinc led the gains with a rise of 1.38%. SHFE copper advanced 0.21%, aluminium grew 0.66%, lead went up 0.51%, nickel climbed 0.99%, and tin added 0.65%. 

LME zinc increased 0.93%, copper rose 0.44%, aluminium climbed 0.97%, nickel closed up 0.83%, tin edged up 0.06%, and lead gained 0.76%.

On the economic data front, the US pending home sales soared 44.3% month on month in May, the largest increase on record, following two consecutive months of decline, the National Association of Realtors reported Monday. 

The reading beat expectations of a 15% gain. Sales were still 5.1% lower on a yearly basis, however.

“This has been a spectacular recovery for contract signings, and goes to show the resiliency of American consumers and their evergreen desire for homeownership,” Lawrence Yun, chief economist for the National Association of Realtors, said in the report. 

“This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.”

The European Commission said on Monday its economic sentiment indicator rose to 75.7 in June from 67.5 in May, as eurozone businesses regained some of their lost optimism as lockdowns imposed to contain the pandemic were eased further.

That was the largest month-to-month rise on record, following a more modest rebound in May. However, the reading remains much lower than the 103.4 level recorded in February, the month before lockdowns became widespread.

Key economic data slated for release today include China’s official manufacturing purchasing managers’ index (PMI) for June, the US Conference Board consumer confidence index for June and the eurozone CPI this month.