Macro Roundup (Jun 22)

Published: Jun 22, 2022 09:30
The dollar index was down 0.3% at 104.38, with the euro firmer on the day, at $1.0536, up 0.3%. The European single currency rose after European Central Bank Chief Economist Philip Lane said the ECB will raise interest rates by 25 basis points at its July meeting, but the size of its September hike is still to be decided, suggesting a larger 50 basis point hike could be in the cards.

SHANGHAI, Jun 22 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar index was down 0.3% at 104.38, with the euro firmer on the day, at $1.0536, up 0.3%. The European single currency rose after European Central Bank Chief Economist Philip Lane said the ECB will raise interest rates by 25 basis points at its July meeting, but the size of its September hike is still to be decided, suggesting a larger 50 basis point hike could be in the cards.

Sterling also rose against the dollar, up 0.2% at $1.2271 on hawkish comments from Bank of England policymakers. BoE chief economist Huw Pill said on Tuesday the central bank would need to raise interest rates further in the near future to tackle surging inflation.

U.S. stock index futures fell slightly overnight Tuesday after the major averages jumped in regular trading hours, attempting to claw back some losses following weeks of selling.

Futures contracts tied to the Dow Jones Industrial Average slipped 88 points or 0.29%, while S&P 500 futures declined 0.25%. Nasdaq 100 futures dipped 0.27%.

During regular trading Tuesday, the Dow surged 641 points, or 2.15%. The S&P 500 added 2.45%, turning in its best day since May 4. The jump comes after the benchmark index slumped 5.79% last week in its worst weekly performance since March 2020.

The Nasdaq Composite advanced 2.51% on Tuesday, following its tenth week of losses in the last 11 weeks.

Oil prices edged up on Tuesday on high summer fuel demand while supplies remained tight because of sanctions on Russian oil after its invasion of Ukraine.

Brent crude futures settled 52 cents, or 0.5%, higher at $114.65 a barrel. The U.S. West Texas Intermediate (WTI) crude contract for July expired on Tuesday, closing at $110.65, with a gain of $1.09, or 1%. The more active August contract was up $1.53 at $109.52.

Both benchmarks posted a weekly loss last week. For WTI it was the first weekly loss in eight weeks, for Brent the first in five.

Gold prices were hemmed into a range on Tuesday as rising U.S. Treasury yields and aggressive rate hike bets dimmed bullion’s appeal despite a pullback in the dollar.

Spot gold fell 0.2% to $1,834.19 per ounce by 1:56 p.m. ET (1756 GMT). U.S. gold futures settled down 0.1% at $1,838.8.

The pan-European Stoxx 600 index closed up 0.36%, paring earlier gains of more than 1%. Autos climbed 1.5% to lead gains while utilities slipped 0.9%.

The positive trade for Europe comes as global markets appear to be staging a comeback rally after a tumultuous week last week.

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
Sibanye Secures 835MW Renewable Energy Portfolio to Support South African Operations
16 hours ago
Sibanye Secures 835MW Renewable Energy Portfolio to Support South African Operations
Read More
Sibanye Secures 835MW Renewable Energy Portfolio to Support South African Operations
Sibanye Secures 835MW Renewable Energy Portfolio to Support South African Operations
[SMM Flash] Sibanye-Stillwater has secured 835MW of renewable electricity capacity through agreements with independent power producers as it continues to increase renewable energy supply to its South African mining operations. The portfolio comprises 43% solar and 57% wind capacity, with 164MW already in commercial operation and a further 671MW agreed and under construction. The portfolio includes the operational 89MW Castle wind farm and 75MW Springbok solar project, while the 103MW Witberg and 140MW Umsinde wind farms are expected to come online around Q4 2026. Additional capacity includes 220MW from the Etana Energy portfolio, 138MW from the NOA portfolio and 70MW through Africa GreenCo, with these projects scheduled for 2027–28. The investment highlights the growing role of renewable power in reducing the mining sector's exposure to grid constraints and conventional electricity supply. Sibanye noted that renewables are expected to provide more than half of South Africa's energy needs by 2028. The company's 835MW portfolio is comparable to the capacity of a large conventional power-generation unit, while being developed through a diversified pipeline of solar and wind projects.
16 hours ago
Sibanye’s Recycling Operations Lift PGM Volumes and Generate US$164m in Cash Flow
16 hours ago
Sibanye’s Recycling Operations Lift PGM Volumes and Generate US$164m in Cash Flow
Read More
Sibanye’s Recycling Operations Lift PGM Volumes and Generate US$164m in Cash Flow
Sibanye’s Recycling Operations Lift PGM Volumes and Generate US$164m in Cash Flow
[SMM Flash] Sibanye-Stillwater’s recycling operations delivered strong earnings and cash generation in the first half of 2026, supported by higher recycled volumes and an expanded regional supply chain. The business recycled and sold 2.8 million oz of precious metals, up 142% year on year, including 195,000 oz of 5E PGMs, 95,000 oz of gold and 2.5 million oz of silver. Adjusted EBITDA reached US$103 million (R1.7 billion), up 11% year on year and 536% excluding the Section 45X tax credit recorded in the prior-year period. Notional free cash flow stood at US$164 million (R2.7 billion), with a 63% adjusted EBITDA conversion rate. Feed volumes also increased significantly, with the Pennsylvania site's volumes more than doubling to 2.2 million oz while the North Carolina acquisition contributed a further 0.5 million oz. The results highlight the growing contribution of recycling as a source of secondary PGM supply, while providing Sibanye with a capital-light earnings stream. The company's US recycling platform processed material containing platinum, palladium, iridium and ruthenium alongside gold, silver and copper, strengthening its exposure to diversified precious-metal flows.
16 hours ago
Sibanye’s SA PGM Operations Generate Strong Cash as Higher Prices Lift Margins
16 hours ago
Sibanye’s SA PGM Operations Generate Strong Cash as Higher Prices Lift Margins
Read More
Sibanye’s SA PGM Operations Generate Strong Cash as Higher Prices Lift Margins
Sibanye’s SA PGM Operations Generate Strong Cash as Higher Prices Lift Margins
[SMM Flash] Sibanye-Stillwater’s South African PGM operations generated strong earnings and cash flow in the first half of 2026, supported by higher PGM prices, consistent production and continued cost discipline. The operations produced 790,000 oz of 4E PGMs, down 2% year on year but in line with guidance. Adjusted EBITDA increased 302% year on year to R19.2 billion, while the adjusted EBITDA margin reached 45%. The operations also generated R10.4 billion in notional free cash flow, representing a significant improvement from the same period last year. The AISC margin reached 44%, although all-in sustaining costs increased 10% year on year to R26,252/4E oz (US$1,600/4E oz), partly reflecting approximately R1 billion in higher royalties. Sibanye said brownfield investment is also strengthening its future production base. R2.6 billion was invested during H1 2026, with the K4 project expected to increase 4E PGM production by 24%. The company is also advancing several mine-life extension projects that leverage existing infrastructure and support mechanisation.
16 hours ago
Macro Roundup (Jun 22) - Shanghai Metals Market (SMM)