Macro Roundup (Dec 25)

SHANGHAI, Dec 25 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

LME base metals, except for nickel and lead, traded lower on Monday. Aluminium saw the biggest losses of some 1.3%. Tin lost 0.5%, copper slid 0.3% and zinc dipped 0.2%.

Most SHFE base metals closed lower overnight. Zinc dropped 0.8%, copper slipped 0.4%, tin sank 0.3% and nickel fell 0.2% while aluminium gained 0.3% and lead rose 0.4%.

The US dollar slipped on Monday as concerns about a prolonged government shutdown and lower equity markets reduced demand for the greenback.

US President Donald Trump's budget director and acting chief of staff, Michael Mulvaney, said on Sunday that the partial US government shutdown could continue into January, when the new Congress convenes and Democrats take over the House of Representatives.

US crude on Monday plunged to its lowest in a year and half, as the oil market fell in tandem with equities.

China will lower or remove import and export duties on a number of items starting 2019 as part of a tariff adjustment package announced on Monday, as it continues to open up the economy.

To expand imports, more than 700 products will be subjected to temporary import tariffs starting January 1. Duties on raw materials for some medicines will be removed, the Ministry of Finance said in an online statement.

Tariffs on some fur imports will be reduced while lower temporary import tariffs will continue to be imposed on necessary, advanced equipment such as aircraft engines as well as resource products such as natural feeds, the ministry said.

Export tariffs on products including chemical fertilisers and iron ore will be scrapped, it said.

China will also apply conventional tariffs on products from 23 countries and regions, including further reduction in tariffs under free trade pacts, the ministry said. This will result in lower tariffs with trade partners including New Zealand, Peru, Costa Rica, among others.

The move aims to support the Belt and Road Initiative and the development of free trade areas and to speed up China's economic and trade cooperation with relevant countries.

Imported goods from Hong Kong and Macao into the mainland will not be subject to tariffs, under relevant trade pacts.

The preferential tariffs with Bangladesh and Laos under the Asia-Pacific Trade Agreement will be adjusted along with a reduction in the most-favoured-nation (MFN) tariffs.

China will also reduce MFN rates for 298 IT products from July 1, the ministry said.

Day ahead

Most global financial markets will shut for the Christmas holiday today.