SHANGHAI, May 31 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today.
Last night
The US dollar index fell from a six-month high to around 94 overnight due to the lower-than-expected data on employment and gross domestic product (GDP) from the US, intensified worries over US-Sino trade conflicts and a rebound in the euro as the reaction to Italy’s political turmoil seemed overwrought.
LME base metals rose for the most part except for aluminium. Zinc gained over 2% as cancelled warrants dipped fast on Wednesday, while nickel rose over 1%. SHFE metals mostly moved in line with their LME counterparts as nickel and zinc gained over 1%, aluminium and lead inched up, while copper and tin fell slightly.
The eurozone consumer confidence index came in at 0.2 in May, flat from expectation. Its economic sentiment indicator fell from April’s 112.7 to stand at 112.5 in May. The industrial sentiment index dipped to 6.8 in May, from April’s 7.3.
The eurozone economic sentiment indicator fell further in May as economic growth in the region slowed and political uncertainty grew. Although the decline was slower than economists' forecasts, it marked the fifth consecutive month of decline. European central bank officials have reiterated their confidence in the prospects of the eurozone, and most have remained silent on Italy’s political turmoil.
The preliminary figure of Germany’s consumer price index (CPI) in May rose 0.5% from April, and went up 2.2% from last year. The reading exceeded expectations and marked the highest level this year, exceeding the European Central Bank’s goal of “inflation approaching, but below 2%”.
The US ADP employment data showed an increase of 178,000 private-sector jobs in May, lower than the expected 190,000.
"The hot job market has cooled slightly as the labour market continues to tighten. Healthcare and professional services remain a model of consistency and continue to serve as the main drivers of growth in the services sector and the broader labour market as well", said Ahu Yildirmaz, vice-president and co-head of the ADP Research Institute.
The US wholesale inventories in April went flat from March, lower from an expected 0.5% gain. GDP in the first quarter was revised to a gain of 2.2% from the previous quarter, lower from the expected and the preliminary 2.3%.
The US personal consumption expenditure (PCE) rose 1% in the first quarter, lower from the expected 1.2%. First-quarter economic growth in the US was slightly lower than the preliminary values due to lower inventory investment and consumer spending. However, a tax cut may still promote economic activity this year.
Day ahead
China’s official manufacturing purchasing managers’ index (PMI) in May came in at 51.9, higher than April’s 51.4. The composite PMI stood at 54.6 in May, compared with 54.1 in April.
Other key factors to watch today include the US core PCE price index, data of crude oil inventory, and eurozone CPI in May.
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