SMM7 March 24: yesterday, non-ferrous metals were generally red. In foreign countries, Lunni rose 4.63%, Lunxi 1.56%, Lunzn zinc up 1.5%, Lun aluminum up 1.07%, Lun lead up 0.8%, Lun copper up 0.45%. The price of (LME) copper on the London Metal Exchange rose on Thursday, due to a sharp drop in copper inventories on the exchange and a surge in metal prices for immediate delivery pointed to a tightening market. The dollar fell to its lowest level in nearly two years, making dollar-denominated metals cheaper for buyers of other currencies. Domestically, Shanghai nickel is up 3.2%, Shanghai zinc is up 2.52%, Shanghai copper is up 0.95%, Shanghai aluminum is up 0.94%, Shanghai tin is up 0.81%, and Shanghai lead is up 0.77%.
The dollar index fell 0.2% to 94.790, and the dollar fell to a nearly two-year low on Thursday as investors continued to sell the dollar in anticipation that a surge in coronavirus cases would make it difficult for the United States to outperform other countries in its economic recovery. Meanwhile, the euro rose to its highest level since early October 2018 and rose for a fifth consecutive day against the dollar, still supported by the EU recovery fund agreement reached earlier this week. It is reported that initial jobless claims in the United States rose last week for the first time in four months, adding to the pressure on the dollar as the continued increase in new crown cases stalled the apparent recovery in the job market and dampened consumer demand.
U. S. stocks closed lower on Thursday, led by technology stocks. Investors are concerned about the progress of the US epidemic, financial reports and fiscal stimulus negotiations. Us Treasury Secretary Mnuchin hinted that a fifth round of anti-epidemic assistance bill may be introduced. The price of gold futures is close to an all-time high. The Dow fell 353.51 points, or 1.31%, to 26652.33; the Nasdaq fell 244.71 points, or 2.29%, to 10461.42; and the S & P 500 fell 40.36 points, or 1.23%, to 3235.66.
In crude oil, US oil fell 2 per cent on Thursday as investors worried that Congress might not agree on an economic stimulus package, along with an increase in initial jobless claims last week and a surge in coronavirus cases. Analysts are preparing to lower their energy demand forecasts. Oil prices fell even as the dollar fell to a nearly 22-month low. The dollar fell to its lowest level against a basket of currencies since September 2018. A weaker dollar usually stimulates purchases of dollar-denominated commodities such as oil because they become cheaper for holders of other currencies. But weak unemployment data and a surge in coronavirus cases in the United States have put pressure on oil prices and stock markets.
In precious metals, COMEX gold futures jumped more than 1 per cent on Thursday to just below $1900 an ounce, boosted by a weaker dollar and hopes of more stimulus to revive the economy hit by the epidemic, while an increase in initial jobless claims in the US last week raised concerns among investors about a slowdown in the economic recovery. Analysts pointed out that the macro environment continued to develop in favor of gold, with the dollar index weakening to a two-year low and real yields falling further in negative areas.
In terms of data, Germany's August Gfk consumer confidence index, previous value:-9.6, expectation:-5, published:-0.3, revised:-9.4 (previous value).
Institutional review of Germany's August Gfk consumer confidence index: German consumer confidence improved better than expected in August and has risen for the third month in a row as the government's economic stimulus package temporarily cut VAT to help the economy recover from the shock of the new crown virus. Buerkl, a researcher at (GfK), a German market research firm, said that the development of consumer confidence during the pandemic was similar to a V-shaped recovery, and there was no doubt that the VAT relief had a very positive effect on it. But the positive impact may be temporary, as consumers are likely to spend less when the VAT cut expires in January 2021.
The number of initial jobless claims in the United States in the week to July 18 (10,000), previous value: 130, expected: 130, published: 141.6, revised: 130.7 (previous value).
Agency comments on initial jobless claims in the United States in the week to July 18: last week, initial jobless claims rose for the first time in nearly four months, indicating that the labor market is stagnating due to a resurgence of new crown pneumonia cases and sluggish demand.
The monthly rate of the leading indicator of the Conference Board of the United States in June, the previous value: 2.80%, expected: 2.1%, published: 2%, revised: 3.2% (previous value).
Ataman Ozyildirim:, head of Economic Research at the Consultative Conference, the rise in the Conference Board's leading indicators in June reflects the changes brought about by the gradual reopening of the economy, with labor market conditions and stock prices playing an important positive role. Broader financial conditions and consumer outlook for businesses still show a weak economic outlook, coupled with a renewed surge in new crown pneumonia cases in most parts of the country, suggesting that the US economy will remain in recession in the short term.
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