SHANGHAI, Mar 26 (SMM) – This is a roundup of global macroeconomic news last weekend and what is expected today.
Last Friday night
Growing trade tension dragged the US dollar index down to a month-low of 89.496, down 0.4% during the day and 0.8% over the week.
Such bearish sentiment also led base metals to fall across the board except for zinc. SHFE copper saw a smaller decline but fell close to 4% over the week. LME copper and aluminium dropped about 1% to the lowest since mid-December 2017. LME and SHFE nickel slipped over 1%.
US preliminary orders for non-defence capital goods excluding aircraft saw an unexpected rebound of 1.8% month on month in February after January’s 0.4% drop. This is the largest gain in five months after the stimulus from President Donald Trump’s corporate tax cuts on equipment spending. It is likely that the strong performance of shipments will offset the negative impact of weaker consumer expenditures on US’ economic growth in the first quarter.
The active US rigs drilling for oil rose by 4 units to 804 units over the week ended March 23, with natural gas rigs up 1 unit to 190 units, according to data from Baker Hughes.
Day ahead
The US’ Dallas Fed Manufacturing Index and China’s launch of its own crude oil futures contract are two key things to watch today.
Worries about an escalating trade war will continue to suppress the US dollar, which is likely to edge down in the short term.
Base metals mostly went down and hit lows affected by the bearish sentiment. We see them trading rangebound with downward room in the short term.
China will launch its yuan-denominated crude oil futures contract on Monday March 26 at the Shanghai International Energy Exchange. The move is expected to further expand China’s influence in the global oil market.
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