SHANGHAI, May 25 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
Last night
The US dollar lost momentum and fell to a low of 93.6 last night as US President Donald Trump pulled out of the meeting with North Korea. It closed 0.2% lower at 93.78.
Base metals rose for the most part with LME nickel leading the gains with a nearly 2% rise. LME copper gained over 1% to touch a nearly three-month high. Lead also jumped over 1% due to a drop in on-warrant lead stocks to the lowest level in five years. Aluminium rose nearly 1%, zinc inched up, while tin fell nearly 1%.
The US initial unemployment claims for the week ended May 19 stood at 234,000, up from the expected 220,000, and registered a high in seven weeks.
Although the increase was more than expected last week, the new claims remained below the 300,000 mark, which is associated with a healthy labour market. Claims have remained under 300,000 for 168 consecutive weeks, the longest period since 1969.
For the week ended May 19, the continued claims for unemployment benefits registered 1.74 million, down from the expected 1.75 million, and fell to a record low since December 1973.
As the labour market tightens and inflation grows, the US central bank is highly likely to raise interest rates in Junes.
Most policymakers on the Federal Reserve Board believed "that if incoming information broadly confirmed their current economic outlook, it would likely soon be appropriate... to take another step in removing policy accommodation", minutes of the last meeting showed.
Existing home sales in the US fell 2.5% to a seasonally adjusted annual rate of 5.46 million units in April. The figure fell after two consecutive months of gains.
Day ahead
Key factors to watch today include the US' durable goods orders in April and the University of Michigan's consumer sentiment index in May.
The US dollar is likely to test higher levels today and to remain robust in the short term, while base metals are expected to see mixed trading today.
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