SHANGHAI, Jul 1 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar edged lower after rose on Tuesday, underpinned by renewed concerns about the spread of the coronavirus, as countries around the world and some US states imposed new lockdowns.
LME and SHFE base metals ended mixed overnight. LME copper extended a rally and led the gains with a rise of 1.17%, amid investors worries about supply disruption from major raw materials suppliers caused by the pandemic. Aluminium grew 0.31%, nickel added 0.27%, while tin slipped 0.24%, zinc lost 0.88% and lead shed 1.06%.
SHFE copper advanced 0.76%, aluminium gained 0.72%, lead rose 0.65%, tin increased 0.12%, while zinc dropped 0.6% and nickel eased 0.84%.
On the economic data front, the purchasing managers' index (PMI) for China's manufacturing sector ticked up to 50.9 in June from 50.6 in May, the National Bureau of Statistics (NBS) said Tuesday. A reading above 50 indicates expansion, while a reading below reflects contraction.
The NBS data also showed that the PMI for China's non-manufacturing sector came in at 54.2 in June, up from 53.6 in May.
While domestic demand and supply are starting to pick up with major economies reopening, uncertainties remain as the coronavirus pandemic has not been effectively controlled overseas, the bureau cautioned.
Data released Tuesday showed that the Conference Board’s consumer confidence index rose to 98.1 in June, beating expectations of 90.5, as easing quarantine restrictions raised consumers hope for an economic recovery.
“The re-opening of the economy and relative improvement in unemployment claims helped improve consumers’ assessment of current conditions,” said Lynn Franco, senior director of economic indicators at The Conference Board.
Franco noted, however, “the Present Situation Index suggests that economic conditions remain weak. Looking ahead, consumers are less pessimistic about the short-term outlook, but do not foresee a significant pickup in economic activity.”
According to Eurostat’s flash reading of eurozone consumer price index (CPI) report, the annual reading came in at 0.3% in June, meeting expectations of 0.1% and the previous rise of 0.1%.
The headline inflation had hit the lowest since June 2016 last month as the coronavirus pandemic led to reduced fuel and energy demand.
Key economic data slated for release today include China’s Caixin manufacturing PMI for June, Markit manufacturing PMI for Germany, the US and eurozone in June, the US ADP non-farm employment data for June, the US weekly crude oil change surveyed by the Energy Information Administration (EIA), as well as Germany’s retail sales for May.