• 15/08/2022 10:07 pm

SHANGHAI, Aug 14 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

Base metals declined for the most part, with LME copper plunging more than 2%. Gold prices jumped as dollar dipped and US labour market recovered at a slow pace.

The dollar slid on Thursday against some major currencies such as the euro, Swiss franc, and sterling, weighed down by the impasse in Congress about additional US stimulus to help cope with the coronavirus pandemic. After losing 10% of its value from a peak in March, the dollar has been bouncing around its lowest levels in more than two years since late July.

The dollar shrugged off better-than-expected US jobless claims data. Initial claims for state unemployment benefits decreased 228,000 to a seasonally adjusted 963,000 for the week ended Aug 8. That was the lowest level since mid-March when authorities started shutting down non-essential business to slow the spread of the virus, though at least 28 million people are still receiving unemployment checks, indicating a weak labor market.

Gold jumped as much as 2.5% on Thursday, rebounding from a near three-week low hit in the last session, as the dollar dipped and a slow recovery in the US labor market reinforced the economic toll from the coronavirus pandemic.

Spot gold rose 1.9% to $1,954.37 per ounce, having slipped below $1,900 on Wednesday. U.S. gold futures settled up 1.1% to $1,970.40.

On Wall Street, stocks closed mixed on Thursday as investors weighed the better-than-expected US jobless claims and a lack of progress in additional fiscal stimulus. The Dow Jones Industrial Average lost 80.12 points or 0.29% to 27,896.72, the S&P 500 fell 0.2% to end at 3,373.43, while the Nasdaq rose 0.27% to close at 11,042.5.

Oil prices eased on Thursday after the International Energy Agency (IEA) lowered its 2020 oil demand forecast following unprecedented travel restrictions, but resilience in equities markets and a weak dollar limited losses.

Brent crude was down 43 cents, or 0.95%, at $45.00 a barrel, and West Texas Intermediate settled 43 cents, or 1.01%, lower at $42.24 per barrel.

The International Energy Agency cut its 2020 oil demand forecast on Thursday and said reduced air travel because of the COVID-19 pandemic would lower global oil consumption this year by 8.1 million barrels per day (bpd).

The Organization of the Petroleum Exporting Countries (OPEC) also said that world oil demand will fall by 9.06 million bpd this year, more than the 8.95 million bpd decline expected a month ago.

Prices found some support as US crude oil, gasoline and distillate inventories dropped last week as refiners ramped up production and demand improved, a government report showed.

On the SHFE, nonferrous metals, except for lead, moved lower in overnight trading. Copper fell 1.64%, aluminium shed 0.52%, zinc slipped 0.64%, nickel weakened 0.56% and tin slid 0.27, while lead added 0.88%.

Their counterparts on the LME performed similarly on Thursday. Copper sank 2.56%, aluminium fell 1.2%, zinc declined 1.15%, nickel slipped 1.44% and tin weakened 0.29%, while lead advanced 0.13%.

Economic data slated for release today and tomorrow include China’s added value of above-scale industries and total retail sales of consumer goods for July and the first seven months of 2020, and urban fixed assets investment for the first seven months of 2020, second-quarter GDP and June trade balance in eurozone, US retail sales and industrial production for July, University of Michigan’s initial consumer sentiment index for August, and total well drillings in the week ended August 14.

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