SHANGHAI, Sep 10 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.
The dollar slid from a four-week high on Wednesday, led by losses against the euro after a news report said European Central Bank officials have become more confident in their outlook for the region’s recovery.
Gold prices rose to their highest level in nearly a week on Wednesday, as the dollar weakened and concerns over a delay in the development of a coronavirus vaccine drove investors toward the safe-haven metal.
Global trials of AstraZeneca’s experimental COVID-19 vaccine were paused due to an unexplained illness in a study participant.
The news of the delay may be indirectly supportive for gold, as it could spell a prolonged economic slowdown and further expectations of fiscal stimulus, said Saxo Bank analyst Ole Hansen.
Oil futures on Wednesday clawed back some of the losses they sustained in the previous session, but a rebound in COVID-19 cases in some countries undermined hopes for a steady recovery in global demand.
Brent crude rose $1.21, or 3%, to $40.99 a barrel. The benchmark dropped more than 5% on Tuesday to fall below $40 a barrel for the first time since June. US crude settled $1.29, or 3.5%, higher at $38.05 per barrel, having fallen nearly 8% in the previous session.
That lifted the major benchmarks off Tuesday’s levels near three-month lows. Prices fell this week after Saudi Arabia’s state oil company Aramco cut the October official selling prices for its Arab light oil, a sign of softening demand.
The American Petroleum Institute (API) reported late Wednesday that US crude supplies rose by 3 million barrels for the week ended September 4, according to sources. The API data, which was released a day later than usual because of Monday's Labor Day holiday, also reportedly showed gasoline stockpiles dropped 6.9 million barrels, while distillate inventories rose by 2.3 million barrels.
China’s factory gate prices fell for a seventh straight month in August although at the slowest annual pace since March, suggesting industries in the world’s second-biggest economy continued their recovery from the coronavirus-induced downturn.
On the SHFE, nonferrous metals were mostly higher in overnight trading. Copper added 0.75%, aluminium edged up 0.03%, nickel inched up 0.02% and tin strengthened 0.26%, while zinc shed 0.05% and lead fell 0.88%.
The LME complex fell for the most part on Wednesday. Aluminium slid 0.64%, lead declined 1.1%, nickel slipped 0.17% and tin edged down 0.06%, while copper rose 0.74% and zinc strengthened 0.25%.
Here’s a look at what’s on tap:
Europe: European Central Bank’s interest rate decision and monetary policy statement
US: Labor Department’s weekly jobless claims report, producer price index (PPI) for August and inventory data from the US Energy Information Administration (EIA)