Macro Roundup (Dec 3)

Published: Dec 3, 2020 08:48
The safe-haven dollar sank to a fresh 2-1/2-year low in choppy trading on Wednesday, pressured once again by expectations of further fiscal stimulus for the United States.

SHANGHAI, Dec 3 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The safe-haven dollar sank to a fresh 2-1/2-year low in choppy trading on Wednesday, pressured once again by expectations of further fiscal stimulus for the United States.

U.S. Senate Democratic Leader Chuck Schumer on Wednesday rejected the latest Republican coronavirus aid plan. He described it as an “inadequate, partisan proposal” that would help shield businesses from liability lawsuits but fail to help workers hurt by the pandemic.

That came a day after a proposed bipartisan coronavirus pandemic-related economic stimulus package on Tuesday worth $908 billion lifted the market’s appetite for risk and pushed the dollar to its lowest level since April 2018.

That trend continued on Wednesday, after U.S. Treasury Secretary Steven Mnuchin said Republican President Donald Trump would sign a pandemic relief deal proposed by Senate Majority Leader Mitch McConnell.

On Wall Street, U.S. stock futures held steady on Wednesday evening as investors awaited news on stimulus negotiations and the vaccine approval process.

Futures contracts tied to the Dow Jones Industrial Average and the S&P 500 were little changed, while those for the Nasdaq 100 gained 0.1%.

The move in futures comes after a relatively quiet day on Wall Street as investors monitored developments in Washington about a possible stimulus bill. During Wednesday’s session, the Dow and S&P 500 gained 0.2%, while the Nasdaq Composite slipped 0.1%. The slight move higher for the S&P 500 resulted in a new record high.

Oil prices rose more than 1% on Wednesday as the market awaited a pact from producers on output, which many traders expect will continue to be reined in, and Britain’s approval of a COVID-19 vaccine boosted hopes for a demand recovery.

Traders were watching the Organization of the Petroleum Exporting Countries (OPEC), Russia and other allies, known as OPEC+, which postponed talks on next year’s oil output policy to Thursday from Tuesday, according to sources.

Gold firmed near an over one-week high on Wednesday as prospects of a U.S. coronavirus relief package reinforced its appeal as a hedge against likely inflation and sent the dollar to a multi-year trough.

On the vaccine front, the U.K. became the first country to grant emergency approval to the Covid-19 vaccine from Pfizer and BioNTech. Regulators in the U.S. are expected to make determinations on that vaccine and a similar vaccine from Moderna later this month, possibly allowing distribution to begin before the start of 2021.

Still, the rollout of the vaccine is expected to take many months as pharmaceutical companies ramp up production for the global population, with many health experts warning of a tough winter in the United States. The U.S. now has more than 100,000 patients hospitalized with Covid-19, according to data from the Covid Tracking Project, which is run by journalists at The Atlantic. That is significantly above the peak during the first wave in the spring, when cases were concentrated in the northeastern part of the country.

On the data front, U.S. private payrolls increased by 307,000 jobs in November, the ADP National Employment Report showed, lower than economists’ forecast for a 410,000 rise in new jobs. Data for October, though, was revised up to show 404,000 jobs added instead of the initially reported 365,000.

U.S. crude inventories fell by 679,000 barrels in the week to Nov. 27, according to data from the Energy Information Administration on Wednesday, defying the build the American Petroleum Institute reported on Tuesday. U.S. oil production rose 100,000 barrels per day last week to its highest level since May, the EIA data showed.

German retail sales rebounded in October, before the country re-entered a nationwide lockdown in a bid to curb a resurgence in coronavirus cases. Italy’s unemployment rate climbed to 9.8% in October from an upwardly revised 9.7% in September, the national statistics bureau said Wednesday.

Here’s a look at what’s on tap:

China: Caixin/Markit services Purchasing Managers’ Index for November

Eurozone: October retail sales

The U.S.: Initial jobless claims in the week ended November 28, ISM non-manufacturing PMI for November

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
African Rainbow Minerals (ARM) Invests $927M in Bokoni Platinum Mine Redevelopment
23 hours ago
African Rainbow Minerals (ARM) Invests $927M in Bokoni Platinum Mine Redevelopment
Read More
African Rainbow Minerals (ARM) Invests $927M in Bokoni Platinum Mine Redevelopment
African Rainbow Minerals (ARM) Invests $927M in Bokoni Platinum Mine Redevelopment
[SMM PGM Express] African Rainbow Minerals (ARM) has approved nearly USD 1 billion in investment to redevelop South Africa’s Bokoni platinum mine, signalling renewed confidence in the long-term outlook for platinum amid improving prices and tightening supply conditions. The company plans to invest approximately USD 927 million in a phased redevelopment of Bokoni, which is expected to become a significant source of platinum group metals (PGMs). Once fully operational, the mine is projected to produce around 350,000–400,000 ounces of six-element PGMs annually, strengthening South Africa’s platinum supply base. The investment comes as the global platinum market continues to face supply challenges. South Africa remains the dominant producer of platinum, but rising operating costs, power constraints and previous periods of weak prices have led to mine closures, production cuts and delayed projects. Recent improvements in platinum prices have encouraged producers to reconsider previously deferred investments.
23 hours ago
Palladium Slides to $1,255.30/oz on Weak Demand and Supply Risks
Jul 24, 2026 15:55
Palladium Slides to $1,255.30/oz on Weak Demand and Supply Risks
Read More
Palladium Slides to $1,255.30/oz on Weak Demand and Supply Risks
Palladium Slides to $1,255.30/oz on Weak Demand and Supply Risks
[SMM Express] NYMEX July palladium futures settled at USD 1,255.30/oz on 23 July, reflecting continued weakness in the palladium market amid cautious industrial demand and softer sentiment across precious metals. Despite the recent decline, palladium's market fundamentals remain closely linked to industrial consumption. More than half of global demand is driven by the automotive sector, where the metal is used in catalytic converters to reduce vehicle emissions. Additional demand from electronics, jewellery and chemical applications continues to provide underlying support. On the supply side, global production remains concentrated in Russia and South Africa, with comparatively limited output from Canada. Operational challenges, including power supply constraints and labour-related disruptions in South Africa, continue to pose potential supply risks.
Jul 24, 2026 15:55
Qingdao Chunjing  helps SMM create 《2026SMM Platinum Group Metals and Precious Metals Industry Chain Distribution Map》
Jul 24, 2026 15:25
Qingdao Chunjing helps SMM create 《2026SMM Platinum Group Metals and Precious Metals Industry Chain Distribution Map》
Read More
Qingdao Chunjing  helps SMM create 《2026SMM Platinum Group Metals and Precious Metals Industry Chain Distribution Map》
Qingdao Chunjing helps SMM create 《2026SMM Platinum Group Metals and Precious Metals Industry Chain Distribution Map》
Jul 24, 2026 15:25