Macro Roundup (Jul 16)

Published: Jul 16, 2020 09:00 (GMT+8)
The US dollar declined to the lowest level in nearly five weeks, as risk sentiment revived as progress toward a coronavirus vaccine helped equities rebound.

SHANGHAI, Jul 16 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.


The US dollar declined to the lowest level in nearly five weeks, as risk sentiment revived as progress toward a coronavirus vaccine helped equities rebound.


Overnight, SHFE base metals continued to end lower across the board while LME nonferrous metals traded mixed.

SHFE copper led the losses and slipped 2.25%. Aluminium dropped 1.24%, zinc eased 0.61%, lead dipped 1.69%, nickel fell 0.66% and tin went down 0.88%. Rebar shed 0.29% and stainless steel decreased by 1.03%. 

LME copper fell with its SHFE counterpart and closed down 1.62%. Aluminium shed 0.24%, nickel declined 0.48%, while zinc climbed 0.41%, tin expanded 0.06% and lead rose 0.14%.


On the data front, consumer prices in the UK edged up in June though they were the second-lowest in nearly four years and the first growth since January.

The UK consumer price index rose 0.6% year-over-year in June, compared to 0.5% growth in May. Consensus expectations were for 0.4% growth, the Office for National Statistics said.

“Price growth has generally been strong in these areas in recent months with lockdown driving elevated consumer demand for these goods even as international supply chains have been under pressure,” said economists at Citi.


US import and export prices increased in June, the US Department of Labor reported on Wednesday.

The price index for US imports rose 1.4% in June, after rising 0.8% the previous month. The June advance was led by higher fuel prices, and was the largest monthly increase since the index rose 1.4% in March 2012. Despite the recent increases, the price index for US imports fell 3.8% for the year ended in June.
The price index for US imports from China grew 0.1% in June, the first one-month advance since the index rose 0.2% in December 2019. The uptick followed a 0.1% decline in May. Import prices from China fell 0.9% over the past year.


The US industrial production rose 5.4% in June, the second gain after a steep drop in March and April, the Federal Reserve reported Wednesday.

This followed a record 12.5% decline in April and a 4.4% drop in March. Industrial production was still down 10.9% compared to pre-COVID-19 trend and production fell at a 42.6% annual rate in the second quarter, the largest quarterly decline since right after the end of the Second World War.


US crude oil refinery inputs decreased during the week ending July 10, the U.S. Energy Information Administration (EIA) said Wednesday.

US crude oil refinery inputs averaged 14.3 million barrels per day (b/d) last week, 38,000 b/d less than the previous week's average. Refineries operated at 78.1% of their operable capacity last week.


Key economic data slated for release today include China’s gross domestic product (GDP) for Q2, the US weekly unemployment claims, its unemployment rate and retail sales for June, and the eurozone trade balance for May. 

 

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
One Bullion completes second Vumba drill hole in Botswana
1 hour ago
One Bullion completes second Vumba drill hole in Botswana
Read More
One Bullion completes second Vumba drill hole in Botswana
One Bullion completes second Vumba drill hole in Botswana
[SMM Gold flash] One Bullion has completed the second hole of its approximately 3,000-metre diamond-drilling programme at the Vumba gold project in northeastern Botswana. VUDD018 reached 350.85 metres at the Central–Makoba target, while drilling had started on the third hole, VUDD019. Preliminary visual logging recorded repeated silica–carbonate alteration, quartz–carbonate veining and arsenopyrite with lesser pyrite. The oblique hole gives the explorer a second structural view of the Central–Makoba system and will contribute to its three-dimensional geological model. No assays from VUDD018 were available, however, and visual alteration, veining and sulphides do not establish gold grade, mineralised width or economic significance. Laboratory results and QA/QC review are therefore required before the target can be assessed.
1 hour ago
Bullion falls 0.9% as weekly decline reaches 3.4%
1 hour ago
Bullion falls 0.9% as weekly decline reaches 3.4%
Read More
Bullion falls 0.9% as weekly decline reaches 3.4%
Bullion falls 0.9% as weekly decline reaches 3.4%
[SMM Precious Metals Flash] Spot gold fell 0.9% to US$4,140.06 an ounce by 18:33 GMT on 2 October and was down about 3.4% for the week, Reuters reported. US gold futures settled 1% lower at US$4,162.30. Bullion reversed an earlier gain of more than 1% despite weaker-than-expected September US payroll growth, as elevated Treasury yields and the dollar’s weekly strength pressured non-yielding metals. The reversal shows that weaker employment data alone was insufficient to overcome pressure from interest-rate expectations and long-dated bond yields. Platinum also fell 2% to US$1,692.90, while palladium declined 0.5% to US$1,165.75, with all major precious metals heading for weekly losses. These figures are Reuters’ stated 2 October market snapshots, not current live quotations.
1 hour ago
Afaq outlines US$146 million Egyptian investment plan
1 hour ago
Afaq outlines US$146 million Egyptian investment plan
Read More
Afaq outlines US$146 million Egyptian investment plan
Afaq outlines US$146 million Egyptian investment plan
[SMM Gold Flash] Afaq Mining has identified a deposit containing about 305,000 ounces of gold at the West Gabal Elba concession in Egypt’s southeastern desert, chairman Mostafa Elbahr told Reuters during the Egypt Mining Forum held on 28–29 September. The privately owned Egyptian company plans to invest about US$146 million over four to five years in further exploration and an initial production facility; the spending and production have not yet occurred. The disclosure adds a prospective source beyond Sukari, which currently dominates Egypt’s modern gold output. It also supports the government’s ambition to lift national production to 800,000 ounces annually by 2030 from roughly 500,000 ounces at Sukari. Reuters did not characterise Afaq’s figure as a mineable reserve or report that its facility had been built; commercial production would still depend on further technical work, permits and financing.
1 hour ago