SHANGHAI, Jul 31 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
Nonferrous metals on the LME closed lower across the board on Thursday as the US reported a worst-ever gross domestic product (GDP) contraction in the second quarter amid virus-induced shutdown.
Copper declined 0.3%, aluminium fell 0.2%, zinc shed 0.4%, nickel and tin shed 1%, and lead lost 0.5%.
On the SHFE, nonferrous metals were mostly lower in overnight trading. Copper declined 0.2%, lead and nickel fell 0.3% and tin slumped 1.3%, while aluminium advanced 0.1% and zinc rose 0.4%.
The US economy saw the biggest quarterly plunge in history. GDP from April to June plunged 32.9% on an annualised basis, according to the Commerce Department’s first reading on the data released Thursday.
Meanwhile, US weekly jobless claims came in at 1.434 million in the week ending July 25, roughly in line with estimates. However, continuing claims, or those who have been collecting for at least two weeks, totalled 17.018 million, up from about 16 million in the previous week.
The US dollar index against a basket of currencies was down 0.35% at 92.94 after US President Donald Trump raised the possibility of delaying the nation’s November presidential election, and it is on track for its worst monthly performance in a decade as the spread of the coronavirus continues to weigh on the US economy.
On Wall Street, stocks were mixed on Thursday. The Dow Jones Industrial Average slid 225.9 points, or 0.85%, to end the day at 26,313.65. The S&P index dipped 0.37% to 3,246.24. The Nasdaq Composite outperformed, rising 0.43% to 10,587.81.
Meanwhile, crude oil prices sank on weak US economic data and rising Covid-19 cases. WTI crude oil futures ended 3.27% lower at $39.92/barrel, and Brent crude oil for September delivery fell 1.85% to $42.94/barrel.
Gold prices fell on Thursday after rising for nine straight days. COMEX gold for December delivery ended the day 0.5% weaker at $1,966.8/oz.
Germany went through an unprecedented contraction of economic activities, with its initial second-quarter GDP plunging 10.1%, on the backdrop of virus-induced lockdown.
Economic data slated for release today include July official manufacturing purchasing managers' index (PMI) in China, retail sales for June in Germany, preliminary July consumer price index (CPI) and initial second-quarter GDP in the eurozone, US personal consumption expenditures (PCE) price index and personal expenditure for June and final July consumer confidence index from the University of Michigan.