SHANGHAI, Aug 24 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar on Friday gained against the euro for the first week since mid-June after data showed a strong uptick in US business activity, while the single currency was held down as an August batch of European business surveys pointed to a stuttering economic recovery.
US business activity snapped back to the highest since early 2019 this month as companies in both the manufacturing and services sectors saw a resurgence in new orders even as new COVID-19 cases remain stubbornly high across the country.
Gold dropped to its lowest in over a week and was en route to its second straight weekly decline on Friday, as a strong rebound in the dollar and a resurgence in US business activity dented bullion’s allure.
Spot gold fell 0.2% to $1,939.64 per ounce, after declining over 1% to $1,910.99. US gold futures settled unchanged at $1,947.
For the week, gold is down 0.3% and prices have retreated sharply from above $2,000 hit earlier this week.
On Wall Street, an unstoppable rally in major technology shares last week pushed the S&P 500 to levels above its previous record set before the pandemic. The broad equity benchmark posted its fourth straight positive week and closed at a fresh record on Friday.
The tech-heavy Nasdaq Composite gained 2.6% last week, posting a six-week winning streak and notching its 36th intraday high. The Nasdaq has gained 26% this year.
The 30-stock Dow, however, is still about 5% below its record high from February as many of its consumer discretionary and industrial constituents have yet to fully recover from the unprecedented sell-off earlier this year.
Investors remained on high alert for updates on the coronavirus pandemic as the world attempts to ease restrictions and revive economic growth.
Oil prices dropped on Friday as the economic recovery worldwide runs into stumbling blocks due to renewed coronavirus lockdowns, even as major global crude producers limit crude supply.
The euro zone’s economic recovery from its deepest downturn on record has stalled this month as pent-up demand unleashed by the easing of lockdowns in July dwindled, a survey showed.
By contrast, US housing and manufacturing survey data came in better than expected, offsetting a surprising increase in jobless claims on Thursday.
Brent crude futures were down 84 cents, or 1.9%, at $44.06 a barrel, heading for a nearly 2% weekly fall. West Texas Intermediate crude futures settled 48 cents, or 1.12%, lower at $42.34 per barrel.
Nonferrous metals on the SHFE, except for nickel, closed lower on Friday night. Copper plunged 1.6%, aluminium fell 1.52%, zinc declined 1.32%, lead weakened 0.81% and tin slid 0.49%, while nickel strengthened 0.46%.
Their counterparts on the LME performed similarly. Copper slumped 1.86%, aluminium slid 0.84%, zinc fell 1.25%, lead weakened 1.16% and tin edged 0.11% lower, while nickel rose 1.03%.