SHANGHAI, Jul 30 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
Nonferrous metals on the LME mostly increased on Wednesday, while the US dollar fell to its lowest since May 2018 against a basket of rivals, as the US Federal Reserve kept its interest rates unchanged at near zero.
On the LME, nonferrous metals, except for tin, moved higher on Wednesday. Copper and aluminium edged up 0.1%, zinc jumped 1.5%, nickel surged 1.6% and lead rose 0.9%.
Metals prices on the SHFE performed similarly in overnight trading. Copper gained 0.5%, aluminium advanced 1.4%, zinc surged 2.2%, lead increased 0.8%, nickel rose 1.1%, while tin dropped 1.1%. Rebar inched up 0.1% and stainless steel edged up 0.04%.
The Fed kept its rate targeted in a range between 0%-0.25% in a decision announced Wednesday that came along with a tepid outlook on the coronavirus-plagued economy. In a move widely expected, the US central bank kept its benchmark overnight lending rate anchored near zero, where it has been since March 15 in the early days of the pandemic.
On Wall Street, stocks closed higher on Wednesday. The Dow Jones Industrial Average ended 0.61% higher at 26,539.57 points, the S&P index gained 40 points, or 1.24%, to 3,258.444 points, and the Nasdaq index added 140.9 points, or 1.35%, to 10,542.94 points.
Oil prices edged up on Wednesday after a drastic drop in US crude inventories. WTI crude oil futures ended 0.56% higher at $41.27/barrel, and Brent crude oil for September delivery rose 1.23% to $43.75/barrel.
COMEX gold for December delivery gained 0.7% to $1,976.7/oz.
US pending home sales continued to climb in June, jumping 16.6% from May and rising 6.3% from June 2019.
The US Energy Information Administration (EIA) reported late Wednesday that US crude supplies fell by 10.61 million barrels for the week ended July 24, marking the largest drawdown since December. The EIA data also showed that commercial crude stockpiles declined 10.61 million barrels, or 2%, to 526 million barrels, and the average crude supply stood at 18.34 million barrels per day, 13% less than the same four-week period last year.
Economic data slated for release today include July unemployment rate, preliminary second-quarter gross domestic product (GDP) and preliminary July consumer price index (CPI) in Germany, final consumer confidence index and economic climate index for July and unemployment rate for June in the eurozone, US claims for unemployment benefits in the week ended July 25, personal consumption expenditures (PCE) price index and preliminary GDP in the second quarter.