SHANGHAI, Jun 26 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
Last night
The US dollar index dipped overnight on risk aversion and closed at 94.3. News reports suggested that companies with 25% or more Chinese ownership may be banned from buying US businesses with “industrially significant technology”.
Base metals fell across the board overnight except for SHFE lead. LME nickel led the decline with a sharp loss of 3.8%, followed with zinc, down over 3%. LME zinc touched the lowest level in more than 10 months on consistent inventory growth and growing anticipation of production increase at mines. LME copper dropped to the lowest level since May, down 1.4%. LME aluminium touched the lowest point in two and an half months, down 1.2%. LME tin edged down over 1% and lead dipped.
SHFE nickel dropped over 2%, zinc lost 1.6%, copper went down close to 1% with aluminium and tin slightly down.
German Ifo business climate index dropped to 101.8 in June from the revised May figure of 102.3, in line with expectations.
“The boom is over... The discussion about a trade war ...is weighing on the mood. Uncertainty has increased slightly,” Ifo economist Klaus Wohlrabe was quoted as saying in a Reuters report.
US new home sales jumped 6.7% to a seasonally adjusted annual rate of 689,000 units in May, the highest level since November 2017. April's sales pace was revised down to 646,000 units from the previously reported 662,000 units.
Sales in the south, which accounts for the bulk of transactions, rebounded 17.9% to a rate of 409,000 units in May, the highest level since July 2007. Sales tumbled 10% in the northeast and dropped 8.7% in the west.
At May's sales pace it would take 5.2 months to clear the supply of houses on the market, down from 5.5 months in April.
Day ahead
Key factor to watch today is US consumer confidence in June surveyed by the Conference Board.