• 15/08/2022 9:21 pm

SHANGHAI, Aug 19 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

 

LME nonferrous metals rose across the board on Tuesday as the ongoing effects of the Federal Reserve’s stimulus programs weakened the dollar broadly for the fifth straight day and lifted US stocks indexes to record highs.

 

The US dollar index, which measures the greenback against its peers, fell to its lowest in more than two years on Tuesday as the ongoing effects of the Federal Reserve’s stimulus programs weakened the greenback broadly for the fifth consecutive day and lifted US stock indexes to record highs.

Although the dollar often functions as a safe-haven investment in moments of crisis, it has fallen since the Federal Reserve’s intervention into financial markets to maintain liquidity in the midst of the coronavirus pandemic. The Fed’s programs have pushed risk assets to all-time highs and reduced demand for safe-havens, even as economic data has painted a bleak picture of the US recovery.

 

On Wall Street, the S&P 500 rose to its highest level ever, gaining back all of the index’s coronavirus-related losses. The 500-stock average rose 0.2% to a record close of 3,389.78. It also traded above its Feb. 19 intraday record of 3,393.52 earlier in the trading day. The S&P has rallied more than 54% from its March low, bringing an end to the shortest bear market in US history.

The Nasdaq Composite also notched a record on Tuesday after gaining 0.7%, helped by a 4% gain in Amazon and a near 2% gain in Netflix. The Dow Jones Industrial Average dipped 66 points. 

 

Gold rose over 1% to reclaim the key $2,000 an ounce level again on Tuesday as the dollar plunged to two-year lows and the US Treasury yields ticked lower, while investors awaited minutes from the US Federal Reserve’s latest meeting.

Spot gold rose 0.9% at $2,004.21 per ounce, after hitting a one-week peak of $2,014.97. U.S. gold futures settled up 0.7% at $2,013.1.

Also helping gold, US Treasury Secretary Steven Mnuchin on Tuesday said President Donald Trump wants to move forward with more economic aid amid the coronavirus pandemic.

 

Oil prices steadied on Tuesday as demand fears from the new coronavirus offset high compliance with supply cuts from the OPEC+ producer group.

Brent crude futures rose 4 cents to $45.41 a barrel. US West Texas Intermediate crude futures were unchanged at $42.89 per barrel.

The coronavirus pandemic, which has raged for months, shows no signs of letting up. In the Americas alone, almost 11.5 million have contracted the disease, and over 400,000 people have died as a result of the pandemic, the World Health Organization regional director Carissa Etienne said on Tuesday.

The United States and Brazil are the biggest drivers of the COVID-19 case count in the Americas, Etienne added.

“There are still ongoing concerns about COVID and there are continuing concerns about the lack of a deal in Congress for stimulus,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.

The US Congress has so far failed to agree on another fiscal relief package to stem economic fallout from the pandemic.

Meanwhile, some European countries have renewed travel quarantines, which impact jet and motor fuel demand.

 

Nonferrous metals on the LME firmed across the board on Tuesday. Copper jumped 2.33%, aluminium added 0.91%, zinc rose 1%, lead gained 1.53%, nickel advanced 0.75% and tin strengthened 0.92%.

On the SHFE, base metals, except for lead, closed higher in overnight trading. Copper rose 1.69%, aluminum added 0.55%, zinc advanced 0.3%, nickel strengthened 0.57% and tin firmed 0.32%, while lead declined 0.37%.  

 

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