Home / Metal News / Macro Roundup (Sep 9)

Macro Roundup (Sep 9)

iconSep 9, 2020 09:06
Source:SMM
The safe-haven dollar climbed to a four-week peak on Tuesday, led by gains versus sterling on renewed worries about Brexit and as risk appetite waned with a sell-off on Wall Street.

SHANGHAI, Sep 9 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

 

The safe-haven dollar climbed to a four-week peak on Tuesday, led by gains versus sterling on renewed worries about Brexit and as risk appetite waned with a sell-off on Wall Street.

 

On Wall Street, the tech-heavy Nasdaq Composite underperformed once again on Tuesday — falling more than 4% — after suffering its worst week since March. The Nasdaq has lost more than 10% in the past three sessions, officially entering correction territory. The index is still more than 63% from its 52-week low in March.

The Dow Jones Industrial Average cratered more than 600 points, weighed on by a near-6% drop in Boeing. The S&P dipped 2.7%, for its third straight negative day for the first time since June 11.

 

Oil prices tumbled to their lowest level since June on Tuesday amid growing demand concerns as Covid-19 continues to spread.

West Texas Intermediate crude, the US oil benchmark, slipped $3.01, or 7.6%, to settle at $36.76 per barrel. During the session WTI traded as low as $36.13, a price not seen since June 15. International benchmark Brent crude dipped more than 5.3% to settle at $39.78, also its lowest level since June.

Tuesday’s move lower followed Saudi Aramco cutting its official selling prices for October, which RBC’s Helima Croft said triggered new demand concerns.

Rising US-China trade tensions, as well as production coming back online also pressured prices on Tuesday, as did a stronger US dollar.

 

Gold prices rebounded from a near two-week low hit earlier on Tuesday, after a sell-off in stock markets prompted investors to seek refuge in the safe haven metal.

 

Revised data published Tuesday showed that second-quarter euro zone GDP (gross domestic product) contracted by 14.7% year-on-year and 11% from the previous quarter, less than initial estimates but still its sharpest decline on record.

 

Tensions between Washington and Beijing remain on the radar after US President Donald Trump on Monday again raised the idea of an economic “decoupling” from China.

 

The UK is planning to ramp up its preparations to leave the European Union without a deal if no free trade accord can be reached this week. The Financial Times reported that Prime Minister Boris Johnson’s government intends to legislate to override aspects of the Withdrawal Agreement it signed in January, with the EU warning Monday that there will be no deal if this course of action is pursued.

 

Shanghai base metals finished in negative territory in overnight trading. Zinc declined 2.54% to lead the losses, copper weakened 1.03%, aluminium edged down 0.28%, lead fell 1.51%, nickel slid 1.72% and tin shed 1.62%.

Their counterparts on the LME performed similarly. Zinc plunged 3.45%, lead fell 2.89%, copper declined 1.21%, aluminium shed 0.14%, nickel weakened 1.78% and tin slid 1.15%.  

 

The US Labor Department’s Job Openings Labor Turnover Survey for July and Chinese inflation data for August including consumer price index and producer price index are set to be out today.  

Investors are now awaiting an ECB policy meeting due on Thursday, while the US Federal Reserve’s next meeting is scheduled for next week.

 

Macroeconomics

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars

All