SHANGHAI, Jun 5 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
Last night
The US dollar index weakened overnight but rebounded above 94 after the US-North Korea summit was finalised.
Both LME and SHFE metals rose across the board overnight except for tin. SHFE tin dropped close to 1% and LME tin dipped. LME lead rose over 1%, and SHFE lead gained over 2%. LME copper edged up over 1% and SHFE copper inched up as the US dollar weakened. Labour negotiations at BHP’s Escondida copper mine in Chile, the world’s largest copper mine, which began last week could also affect supply.
The Eurozone June Sentix investor confidence index came in at 9.3, much lower than the expected 18.5 and May’s 19.2.
Investor morale in the euro zone deteriorated for the fifth month in a row in June to its lowest level since October 2016, hit by concerns about an anti-establishment government taking power in Italy and a trade dispute with the US.
“The new government in Italy is causing great concern about the eurozone among investors,” Sentix managing director Manfred Huebner, wrote in a note. Huebner added that investors were also concerned about America’s “punitive tariffs”.
US April factory goods orders decreased 0.8% from a month ago, compared to the expected 0.5% decline. Data for March was revised up to show orders growing 1.7% instead of the previously reported 1.6%. Overall orders for durable goods dropped 1.6% in the final April reading as demand for transportation equipment and machinery tumbled, but the underlying trend continued to indicate strong momentum in the manufacturing sector.
The monthly decline in factory orders is likely to be temporary amid reports of strong manufacturing conditions in May. A survey by the Institute for Supply Management (ISM) last week showed sentiment among manufacturers perking up in May amid a surge in new orders.
Day ahead
Key factors to watch today include China Caixin services purchasing managers’ index (PMI) in May, Eurozone retail sales in April and US ISM nonmanufacturing PMI in May.
The US dollar is likely to trade weakly and rangebound today while base metals are expected to continue their strong and rangebound pattern.
For editorial queries, please contact Daisy Tseng at daisy@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn