SHANGHAI, Nov 16 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
Last night
The US dollar held steady against a currency basket while the pound dipped amid uncertainty over whether Prime Minister Theresa May's draft Brexit plan will receive parliamentary approval.
UK Brexit Secretary Dominic Raab resigned from his post, growing pressure on UK Prime Minister Theresa May. He said he failed to reconcile with the terms of her proposed Brexit deal.
Fed Chair Jerome Powell on Wednesday expressed confidence in the US economy and said that markets will have to get used to the idea that the central bank could raise rates at any time starting in 2019.
Base metals increased for the most part as LME zinc led the gains and jumped 2.43%. LME copper surged 1.67%, tin grew 0.28%, nickel gained 0.18%, while aluminium lost 0.21%, and lead inched down. SHFE zinc also jumped 2.03%, copper increased 0.81%, tin went up 0.42%, while lead fell 0.7%, aluminium dipped 0.22%, and nickel edged down.
The eurozone trade surplus dropped sharply to €13.4 billion in September, down from €16.6 billion in August. The weak reading was a result of a weakness in exports, which fell 1% in September, on an annualised basis.
US retail sales rebounded sharply in October as purchases of motor vehicles and building materials surged, likely driven by rebuilding efforts in areas devastated by Hurricane Florence, said the Commerce Department on Thursday.
October retail sales increased 0.8% from September as householdspurchased more electronics and appliances. Data for September was revised down to show retail sales dipping 0.1% instead of nudging up 0.1% as previously reported.
Excluding automobiles, gasoline, building materials and food services, retail sales increased 0.3% in October. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.
A strong labour market, reflected by n unemployment rate of 3.7%, supported consumer spending. The lowest unemployment rate in nearly 49 years is boosting wages, with annual wage growth in October recording its biggest increase in nine and a half years.
Day ahead
The eurozone will release October’s consumer price index (CPI) on Friday, and the US will release its industrial production for October.
