Macro Roundup (Jul 14)

Published: Jul 14, 2020 08:50
The US dollar edged lower on Monday, while stocks on Wall Street traded mixed as investors looked to domestic corporate earnings and upcoming data to gauge whether guarded optimism on the country’s economic outlook is justified.

SHANGHAI, Jul 14 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

 

The US dollar edged lower on Monday, while stocks on Wall Street traded mixed as investors looked to domestic corporate earnings and upcoming data to gauge whether guarded optimism on the country’s economic outlook is justified.

 

Earlier in the session on Monday, US stocks got a boost as German biotech company BioNTech and US pharmaceutical giant Pfizer announced that two of their experimental vaccines for the coronavirus had been granted the US Food and Drug Administration’s “fast track” designation.

 

Oil prices were modestly lower on Monday as the market waits for direction from an OPEC meeting later this week that is expected to recommend an increase in output. Weighing on prices were concerns that demand could take a hit if some governments reverse lockdowns after global coronavirus cases rose by a record daily amount.

The Joint Ministerial Monitoring Committee (JMMC) of the Organization of the Petroleum Exporting Countries (OPEC) prepares to meet on Tuesday and Wednesday to recommend levels for future supply cuts.

 

Surging coronavirus cases globally and concerns that they may slow down recovering economies, meanwhile, underpinned gold prices, which rose above the key $1,800 level on Monday.

 

Nonferrous metals got off to a strong start this week, moving higher across the board on Monday. On the LME, zinc surged 3% to lead the way higher, copper jumped 1.8%, lead climbed 1.6%, nickel advanced 1.2%, tin rose 1.1%, and aluminium inched up less than 0.1%.

 

On the SHFE, nickel soared 2.1% to the biggest gainer in overnight trading, zinc jumped 1.7%, lead climbed 1.1%, copper rose 0.7%, aluminium advanced 0.6% and tin was up 0.5%.

 

The World Health Organization reported a record daily increase in global coronavirus cases on Sunday, with the total up by more than 230,000.

In the US, infections surged over the weekend as Florida reported an increase of more than 15,000 new cases in 24 hours, a record for any state.

 

China will release its trade data for June on Tuesday. The data could provide more clues on China’s economic recovery following the imposition of lockdowns earlier in the year to curb the spread of the coronavirus.

 

A key indicator of US inflation trends, the consumer price index (CPI) will also be released on Tuesday. Economist polled by Dow Jones are estimating US consumer prices rose 0.5% in June.

 

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