Macro Roundup (Aug 10)

SHANGHAI, Aug 10 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.

Last night

The dollar index jumped 0.54% to 95.61 overnight as investors bet global trade tensions and a robust US economy would continue to support the currency. Better-than-expected data on US initial jobless claims and generally rising producer prices also helped the dollar hold its gains.

LME base metals closed mixed on Thursday. Aluminium slumped 2.2%, lead and nickel dropped over 1%, zinc edged down while copper and tin inched up. SHFE metals also saw mixed trading. Copper rose 0.3%, tin gained 0.25% while zinc dipped 0.14%. Nickel lost 0.54%, lead shed 0.65% and aluminium went down 0.85%.

China’s producer price index (PPI), a gauge of factory gate inflation, rose 4.6% in July from a year earlier, compared with an acceleration of 4.7% in June, data from the National Bureau of Statistics showed on Thursday. On a monthly basis, the PPI rose 0.1% in July, compared with a 0.3% growth in June.

The consumer price index (CPI) rose 2.1% from a year earlier in July, faster than June's 1.9% growth. On a monthly basis, the CPI rose 0.3% in July after it edged down 0.1% in June.

The core consumer price index, which strips out volatile food and energy prices, rose 1.9% in July, unchanged from June's pace.

US producer prices were unchanged in July for the first time in seven months as a modest increase in the cost of goods was offset by a drop in services, but underlying producer inflation continued to push higher.

The Labor Department said on Thursday the reading in its producer price index for final demand followed a 0.3% increase in June. On a yearly basis, the PPI advanced 3.3%, slowing after June's 3.4% increase. Economists had forecast July’s PPI increasing 0.2% month on month and rising 3.4% year on year.

A key gauge of underlying producer price pressures that excludes food, energy and trade services rose 0.3% for the second straight month in July. On a yearly basis, the so-called core PPI increased 2.8% after rising 2.7% in June.

The number of Americans filing for unemployment benefits fell unexpectedly last week, suggesting that a strong economy was helping the labour market weather ongoing trade tensions between the US and other countries.

Initial claims for state unemployment benefits slipped 6,000 to a seasonally adjusted 213,000 for the week ended August 4, the Labor Department said on Thursday.

Day ahead

Key things to watch today include China’s total social financing and M2 money supply in July, US consumer inflation in July and Baker Hughes data on US weekly oil-rig count.