Macro Roundup (Dec 22)

Published: Dec 22, 2020 08:47 (GMT+8)
The dollar gained against most currencies on Monday in a choppy, holiday-shortened week, as a fast-spreading new coronavirus strain prevalent in Britain prompted investors to seek safety in the greenback.

SHANGHAI, Dec 22 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar gained against most currencies on Monday in a choppy, holiday-shortened week, as a fast-spreading new coronavirus strain prevalent in Britain prompted investors to seek safety in the greenback.

The new Covid mutation in the U.K. has resulted in a tough lockdown in London and other parts of southeast England and a U-turn on the mixing of households over the Christmas break.

The variant is thought to be up to 70% more transmissible than the original strain of the disease. The World Health Organization said it has so far been identified in Denmark, the Netherlands and Australia.

It has led to several countries in Europe and elsewhere to block travel from Britain. France, Germany, Italy, Ireland and the Netherlands all barred flights from the U.K., as have Canada and Israel.

On Wall Street, during Monday’s regular market hours, stocks opened sharply lower amid concerns about a new variant of Covid-19 in the United Kingdom. Many European countries implemented travel restrictions on visitors from the U.K., and New York Gov. Andrew Cuomo called for the United States to take similar steps.

However, many experts, including those from the World Health Organization, said on Monday that the coronavirus vaccines from Pfizer and Moderna would likely be effective against the new variant and that Covid was mutating at a slower pace than the seasonal flu.

The Dow finished with a gain of 37 points, thanks in part to a strong performance bank stocks. The S&P 500, Nasdaq Composite and stocks tied to the travel industry finished well off their session lows.

Oil prices tumbled more than 2% on Monday as a fast-spreading new coronavirus strain that has shut down much of Britain and led to tighter restrictions in Europe sparked worries about a slower recovery in fuel demand.

Brent crude was down $1.85, or 3.5%, at $50.41 a barrel. West Texas Intermediate (WTI) crude for delivery in January fell $1.36, or 2.77%, to settle at $47.74 per barrel.

The more active February WTI contract fell $1.83, or 3.7%, to $47.41 a barrel.

Both contracts had lost as much as $3 earlier in the session, their biggest daily drop in six months.

“Reports of a new strain of the coronavirus has weighed on risk sentiment and oil. New mobility restrictions across Europe are also not helping as European oil demand will suffer,” said UBS oil analyst Giovanni Staunovo.

“Investors need to be mindful that the road to higher oil demand and prices will remain bumpy.”

Gold edged down on Monday as fears of a new coronavirus strain roiled markets and investors opted for the dollar, while the metal gained some support from a U.S. stimulus package.

Spot gold fell 0.2% to $1,877.83 per ounce, having earlier hit its highest since Nov. 9 at $1,906.46. U.S. gold futures settled down 0.3% at $1,882.80.

“Gold market traders in general are looking at the Senate in the U.S. and it is a foregone conclusion that this stimulus deal that went through last night is going to pass this afternoon,” said Bob Haberkorn, senior market strategist at RJO Futures.

“Gold will trade higher as the week goes on, but today I think traders are getting their heads around the UK strain.”

On the economic data front, investors will receive new readings on consumer confidence and existing home sales on Tuesday.

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
Ghana draft bill proposes state special share and shorter mining leases
Oct 02, 2026 15:49 (GMT+8)
Ghana draft bill proposes state special share and shorter mining leases
Read More
Ghana draft bill proposes state special share and shorter mining leases
Ghana draft bill proposes state special share and shorter mining leases
[SMM Gold Flash] A draft mining bill reviewed by Reuters on 30 September would let Ghana’s mines minister require companies to issue the state a free special share with consent rights over major transactions. It would retain the existing 10% free-carried state interest and limit mining leases to 15 years or the projected mine life, whichever is shorter. The draft would also allow future rules requiring local processing and restricting exports of unprocessed concentrates. None of these proposals has been enacted; Reuters did not establish when the draft was prepared. For Ghana’s gold miners, the proposed rights and shorter leases could affect financing, valuations and renewal decisions. Under the draft, existing rights holders seeking renewal would receive priority consideration for equivalent licences. Mining companies expect further consultation before parliamentary debate, Reuters reported. The final wording and timing remain uncertain.
Oct 02, 2026 15:49 (GMT+8)
PGMs: Independent tests advance platinum and palladium battery technology
Oct 02, 2026 15:48 (GMT+8)
PGMs: Independent tests advance platinum and palladium battery technology
Read More
PGMs: Independent tests advance platinum and palladium battery technology
PGMs: Independent tests advance platinum and palladium battery technology
[SMM PGM Flash] Platinum Group Metals said on 1 October that independent testing by the Battery Innovation Center had validated its Lion Battery subsidiary’s platinum- and palladium-based electrodes in prototype lithium-sulphur cells. Compared with cells without the catalysts, the prototypes showed better capacity and rate capability, with palladium-rich formulations performing best overall. Platinum Group and Valterra Platinum, which own Lion 52% and 48% respectively, have approved funding for the next phase. The result offers a possible new use for PGMs beyond vehicle exhaust catalysts, but remains a prototype milestone. Lion plans to make and test pouch cells, refine the catalysts and assess applications including drones. Commercial performance and demand for significant PGM volumes have yet to be established. The work is relevant to Southern African suppliers: Valterra produces PGMs in South Africa and Zimbabwe, while Platinum Group is developing South Africa’s Waterberg project.
Oct 02, 2026 15:48 (GMT+8)
Sibanye reaches East Boulder wage agreement; separate US strike continues
Oct 01, 2026 16:45 (GMT+8)
Sibanye reaches East Boulder wage agreement; separate US strike continues
Read More
Sibanye reaches East Boulder wage agreement; separate US strike continues
Sibanye reaches East Boulder wage agreement; separate US strike continues
[SMM PGM Flash] Sibanye-Stillwater announced on 30 September that workers at its East Boulder platinum and palladium mine in Montana had ratified a collective agreement with the United Steelworkers. The deal runs retroactively from 1 August 2026 to 31 July 2029, with a 4.5% wage increase in year one, the greater of 3.5% or CPI in year two and the greater of 3.0% or CPI in year three. Strike action at the separate Stillwater East mine and Columbus metallurgical facility continues, the company said. The East Boulder settlement fixes part of the labour-cost path for Sibanye’s US PGM business and supports its planned shift towards more mechanised mining and team-based incentives. It does not resolve the other strike or demonstrate a recovery in output; the company disclosed no revised production guidance in this release.
Oct 01, 2026 16:45 (GMT+8)