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Latest company new about US dollar extended its decline
2019/11/19

US dollar extended its decline

  Macro Roundup (Nov 19) Data Analysis 08:40:36AM Source:SMM   SHANGHAI, Nov 19 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead. Last night The US dollar extended its decline against a basket of its rivals on Monday as investors digested mixed signals around US-China trade talks. On Monday, CNBC quoted a Chinese government source saying the mood in Beijing about a trade deal was pessimistic due to US President Donald Trumps reluctance to roll back on tariffs. The report came after Chinese state media Xinhua saying that China and the US had “constructive talks” on trade in a high-level call over the weekend. China’s central bank said on Monday that it was lowering the seven-day reverse repurchase rate to 2.50% from 2.55%, the first such cut in more than four years. This move comes just two weeks after the People’s Bank of China (PBOC) cut the borrowing cost on its medium-term lending facility (MLF), used by banks for longer-dated funding needs, by the same margin. Both cuts raise the likelihood that the PBOC will trim its new benchmark loan prime rate (LPR), off of which many lenders base their mortgage rates, this week. The US Commerce Department for the third time has extended a temporary license that lets American companies do business with Huawei. This 90-day reprieve for the embattled Chinese telecom follows the first one in May and the second in August. US-China trade uncertainty weighed on oil prices on Monday, but helped gold erase earlier losses. LME base metals closed lower across the board on Monday. Lead led the losses with a 2.1% decline, zinc dropped 1.5%, aluminium and nickel fell 1.2%, tin shed 0.6% and copper slipped 0.4%. The SHFE complex also drifted broadly lower overnight. Lead tumbled 1.2%, nickel fell 1%, tin and zinc slid 0.2%, while aluminium gained 0.4%. Copper stayed flat. Day ahead Economic data slated for release today include US building permits and housing starts in October as well as weekly crude inventory data from the American Petroleum Institute (API). Key Words: Macroeconomics
Latest company new about Macro Roundup (Mar 18)
2019/03/18

Macro Roundup (Mar 18)

SHANGHAI, Mar 18 (SMM) – This is a roundup of global macroeconomic news last weekend and what is expected today. Last weekend The US dollar dropped and recorded the biggest weekly loss in more than three months, dragged by weak US economic data. Weak economic data underscored the Federal Reserve's "patient" stance toward further interest rate hikes this year. Fed officials are scheduled to meet next Tuesday and Wednesday to assess the economy and deliberate on the future course of monetary policy. Base metals ended mixed as LME copper rose 0.73%, nickel grew 0.23%, while lead dipped 2.16%, zinc fell 1.35%, tin slid 0.61%, and aluminium closed 0.32% lower. SHFE copper increased 0.29%, nickel jumped 0.21%, tin nudged up, while lead dropped 1.44%, zinc went down 0.55%, and aluminium fell 0.37%. The US manufacturing output dipped for a second straight month in February and factory activity in New York state was weaker than expected this month, offering further evidence of a sharp slowdown in economic growth early in the first quarter. The Federal Reserve said on Friday manufacturing production fell 0.4% last month, weighed by declines in the output of motor vehicles, machinery, and furniture. Data for January was revised up to show output at factories dropping 0.5% instead of losing 0.9% as previously reported. The preliminary University of Michigan consumer sentiment index moved higher in March for the second straight month, with the index rising to 97.8 from 93.8 in February. In January, the index stood at 91.2, which was the worst reading since November 2016. Inflation in the eurozone accelerated modestly in February but stayed well below the European Central Bank's medium-term target, according to final data for the month. The consumer price index (CPI) rose 1.5% in February from the same month a year earlier, the bloc’s statistics agency Eurostat said. That was higher than the 1.4% recorded in January and confirmed a preliminary reading. Core inflation, which excludes energy, food, alcohol and tobacco prices, slowed to an annual rate of 1% from a revised 1.1% in January. That is well below the level targeted by the European Central Bank, which aims for an inflation rate of close to, but just below, 2% in the medium term. The Job Openings and Labor Turnover survey, or JOLTS, said on Friday that the US employers posted some 7.58 million open jobs in January, near a record high set in November, a sign that businesses are still hungry for workers despite evidence the economy has slowed. There are now about 1 million more open jobs than unemployed workers. Day ahead The eurozone will release its trade balance for January. Key Words: Macroeconomics
Latest company new about Macro Roundup (Jan 31)
2019/01/31

Macro Roundup (Jan 31)

Macro Roundup (Jan 31)   SHANGHAI, Jan 31 (SMM) – This is a roundup of global macroeconomic news last night and what is expected today. Last night LME base metals traded higher across the board on Wednesday. Nickel jumped 1.7%, zinc and copper surged 1.2%, aluminium rose 0.4%, lead and tin gained 0.3%. SHFE base metals traded mixed. Nickel climbed 1.3%, zinc advanced 0.9%, copper crept 0.7%, aluminium nudged up 0.04% while tin and lead edged down 0.2%. On Wednesday, the US dollar fell to a low not seen since January 11 after the Federal Reserve held interest rates steady as expected, and sounded caution on the economy and future interest rate increases. The Fed said it would be patient in lifting borrowing costs further this year as it pointed to rising uncertainty about the US economic outlook. It also said it would be prepared to use the full range of tools, including altering the size and composition of its balance sheet, if the economy needed more monetary accommodation, than could be achieved with rate cuts. Payrolls processor ADP reported on Wednesday that the US private sector added 213,000 jobs in January. That beat forecasts for gains of 178,000, but the monthly total was lower than job gains of 271,000 in December. "The job market weathered the government shutdown well. Despite the severe disruptions, businesses continued to add aggressively to their payrolls," said Mark Zandi, chief economist at Moody's Analytics. "As long as businesses hire strongly, the economic expansion will continue on." Germany's headline consumer price inflation slowed more-than-expected to its lowest level in nearly a year in January, preliminary data from the Federal Statistical Office showed on Wednesday. The consumer price index rose 1.4% year on year in January, after a 1.7% increase in December. Economists had forecast an inflation rate of 1.6%. On a month-on-month basis, the CPI fell 0.8% in January, in line with economists' expectations. Prices edged up 0.1% in November. The European Commission’s final consumer confidence gauge in the bloc came in at -7.9 for the current month, lower than December’s -8.3, while Germany’s consumer climate measured by GfK improved to 10.8 for the month of February. US crude inventories rose by 919,000 barrels for the week ended January 25, the Energy Information Administration said on Wednesday, compared with analysts' expectations for an increase of 3.2 million barrels. The EIA reported a jump of 7.97 million barrels in US crude stocks for the week ended January 18. US pending home sales dropped 2.2% from November to 99 in December, the lowest since April 2014, as the stock market correction hurt consumer confidence, the National Association of Realtors said on Wednesday. On a year-over-year basis, contract signings fell 9.8% in December, making the 12th straight month of annual decreases. Day ahead Economic data slated for release today include China’s official manufacturing purchasing mangers’ index (PMI) for January, Germany’s retail sales for December and unemployment rate for January, the eurozone’s gross domestic product (GDP) growth for the fourth quarter and unemployment rate for December, the US weekly jobless claims and the Chicago PMI for January.   Key Words: Macroeconomics
Latest company new about SMM Morning Comments (Dec 14)
2018/12/14

SMM Morning Comments (Dec 14)

    SHANGHAI, Dec 14 (SMM) – Copper: LME copper pared earlier gains to close at $6,153/mt on Thursday. The SHFE 1902 contract came off from a high of 49,440 yuan/mt overnight, ending at 49,260 yuan/mt. As the US dollar strengthened, copper prices are expected to remain rangebound at lows today. LME copper is likely to trade at $6,150-6,200/mt with the SHFE 1902 contract at 49,000-49,500 yuan/mt. Spot premiums are seen lower at 20-70 yuan/mt. Aluminium: The SHFE 1902 contract recovered some earlier losses to close at 13,615 yuan/mt overnight. A weekly decline of 57,000 mt in social stocks in China provided some support to SHFE aluminium prices. We expect the contract to trade at 13,600-13,700 yuan/mt today with spot prices at discounts of 20 yuan/mt to premiums of 20 yuan/mt. Despite a higher open, LME aluminium reversed earlier gains and slid to close at $1,930/mt on Thursday. We expect it to remain weak today with most transactions at $1,925-1,945/mt. Zinc: LME zinc fluctuated to close 0.35% higher at $2,575/mt on Thursday. Stocks across LME-registered warehouses stayed low and the LME zinc cash/three-month price backwardation remained wide. Uncertainties over macro economy diverge shorts and longs and we expect LME zinc to trade at $2,560-2,610/mt today. The SHFE 1902 contract tumbled to a low of 20,850 yuan/mt overnight before it rebounded to close at 20,980 yuan/mt. The contract held onto the 20,980 yuan/mt level and is expected to remain rangebound today trading between 20,750-21,150 yuan/mt. Nickel: LME nickel initially fell to a low of $10,725/mt, just above the year-low of $10,720/mt on November 27. It then clawed back those losses to close 0.6% higher at $10,850/mt. The SHFE 1905 contract fluctuated to close 0.4% higher at 89,380 yuan/mt overnight. Market focus is largely attuned to the fundamentals as investors await an upcoming two-day meeting of the Federal Open Market Committee (FOMC), which is scheduled to take place on December 18-19. The recent improvement in spot trades limited losses in nickel prices. LME nickel is expected to hover around $10,800/mt today with the SHFE 1905 contract at 88,500-90,000 yuan/mt. Spot prices are seen at 89,000-96,500 yuan/mt. Lead: As the US dollar climbed, LME lead dropped past all moving averages to end at $1,947/mt on Thursday. After a slightly lower open, the SHFE 1901 contract crept to close at 18,495 yuan/mt overnight. It is expected to remain rangebound at highs before the delivery date and might fall after the delivery. Tin: LME tin extended its gains on Thursday and closed at $19,455/mt. The SHFE 1905 contract inched up to close at 146,840 yuan/mt overnight. With supply cuts across Chinese tin producers, tin prices are expected to strengthen into the near term. Resistance is seen at $19,700/mt for LME tin and its SHFE counterpart is likely to test the 147,500 yuan/mt level.   Key Words: Morning comments Copper Aluminium Zinc Lead Nickel Tin For editorial queries, please contact Eve Yeo at eve@smm.cn For more information on how to access our research reports, please email service.en@smm.cn
Latest company new about SMM Morning Comments (Dec 6)
2018/12/06

SMM Morning Comments (Dec 6)

SHANGHAI, Dec 6 (SMM) –     Copper: LME copper rebounded to close at $6,193.5/mt overnight as shorts cut their bets after the contract fell to a low of $6,158.5/mt. LME copper snapped a four-day losing streak and came under pressure at the five- and 10-day moving averages. With a lower open, the SHFE 1902 contract fluctuated to close at 49,310 yuan/mt overnight. This lowered it below all short-term moving averages and the middle Bollinger band. Open interest for the SHFE copper complex decreased below 500,000 lots, reflecting limited confidence among investors. LME copper is expected to trade at $6,140-6,190/mt today with the SHFE 1902 contract at 49,100-49,400 yuan/mt. Spot premiums are seen at 130-300 yuan/mt. In the physical market, sellers were reluctant to offload cargoes and this tightened supplies across the market. Aluminium: After a negative open, the SHFE 1901 contract fluctuated to close lower at 13,710 yuan/mt overnight, posting a two-day losing streak. As fundamentals remained weak, the contract remained subdued and is expected to trade at 13,650-13,750 yuan/mt today with spot discounts at 70-30 yuan/mt. LME aluminium outperformed its SHFE counterpart overnight and traded marginally higher at $1,973/mt. It is expected to trade at $1,950-1,980/mt today. Zinc: LME zinc climbed to close at $2,621.5/mt overnight. The gain could be attributed to the wider LME zinc cash/three-month price backwardation as LME inventories shrank. With short-term moving averages pointing towards bullish signals, we expect LME zinc to strengthen today with most transactions at $2,580-2,630/mt. After hovering just below the 21,000 yuan/mt level, the SHFE 1902 contract jumped to close at 21,075 yuan/mt overnight on short-covering. With low inventories, SHFE zinc remains on a rise and is expected to trade at 20,700-21,200 yuan/mt today. Nickel: LME nickel rebounded from earlier lows and closed at $11,220/mt overnight. After initially falling to a low of 90,250 yuan/mt, the SHFE 1901 contract clawed back losses and ended at 91,250 yuan/mt overnight. Investors remained cautious on lingering concerns over US-China trade. LME nickel is likely to hover around at $11,100/mt today with the SHFE 1901 contract at 90,000-91,500 yuan/mt. Spot prices are seen at 90,500-99,000 yuan/mt. Lead: Meeting strong resistance at $2,000/mt, LME lead slid to close at $1,986/mt overnight. Moving along the five-day moving average, it is expected to continue to test the $2,000/mt level in the near term. The SHFE 1901 contract pared some gains to close at 18,580 yuan/mt overnight after climbing to a high of 18,630 yuan/mt. Trading volumes continued to shrink when the contract hovered around highs for three consecutive days. Tin: LME tin hovered just above the $19,000/mt level and ended at $19,145/mt overnight, with resistance at $19,400/mt. We expect it to remain rangebound in the short term with support at $18,800/mt. The SHFE 1901 contract traded rangebound above the five- and 10-day moving averages and closed at 145,500 yuan/mt overnight. Uncertainties over US-China trade kept SHFE tin trading rangebound, with resistance at 146,500 yuan/mt.     Key Words: Morning comments Copper Aluminium Zinc Lead Nickel Tin For editorial queries, please contact Eve Yeo at eve@smm.cn For more information on how to access our research reports, please email service.en@smm.cn  
Latest company new about With World Cup title, France could launch a dynast
2018/07/11

With World Cup title, France could launch a dynast

ST. PETERSBURG, Russia — It's good the French make lots of Champagne, because with the trophy-winning potential of its team that will play in the World Cup final on Sunday, they could be bathing in the stuff for years to come. Like Spain's team that won everything — two European Championships and one World Cup — in an awesome spell of dominance from 2008 to 2012, the youthful, skilful Bleus could have the makings of a dynasty. FIFA WORLD CUP 1h ago   With World Cup title, France could launch a dynasty The Canadian Press                     Samuel Umtiti Adil Rami Paul Pogba , The Canadian Press ST. PETERSBURG, Russia — It's good the French make lots of Champagne, because with the trophy-winning potential of its team that will play in the World Cup final on Sunday, they could be bathing in the stuff for years to come. Like Spain's team that won everything — two European Championships and one World Cup — in an awesome spell of dominance from 2008 to 2012, the youthful, skilful Bleus could have the makings of a dynasty.   Why? Let's count the ways. Heaps of talent, not just on the pitch but on the bench and back in France, too. A defence that defanged the World Cup's most prolific scoring team, Belgium, in a semifinal so engrossing that 90 minutes seemed to zip past in half that time. Youth, so much youth, running through key positions in the team like an electric current. The average age of France's starting line-up in the 1-0 victory over Belgium was a shade over 26. Good for many years to come. And — really he should go at the top of this list — Kylian Mbappe, a.k.a football dynamite and surely the strongest candidate for the World Cup's best player award. Imagine how much better, how much more polished France's young diamond will be at age 21, at the 2020 European Championship, or at age 23, at the 2022 World Cup in Qatar, and on and on. The mind boggles at the potential of the 19-year-old who may be the best deal Paris Saint-Germain ever make, bought one year ago for 180 million euros ($210 million) and perhaps worth now double that after four fantastic weeks in Russia. France's timing is good, too. Coach Didier Deschamps is getting his pieces to fit just as other football powers in Europe are unraveling. Portugal, the reigning European champion, will soon have to find a way to win without Cristiano Ronaldo, who although still remarkably potent at age 33, can't carry his country forever. Germany is in disarray, searching for scapegoats and answers, after the 2014 World Cup champion exited lamely from the group stage this time. And Spain has flogged its tiki-taka game of possession and passing to death and needs to find a new path to victory and without midfielder Andres Iniesta, who retired after Spain's loss to Russia in the first knockout round. Spain's new coach Luis Enrique has his work cut out. In short, there's a vacuum to fill and France is poised to do it. Unless the English get there first. Like Deschamps, England coach Gareth Southgate has built his team around young players. If England beats Croatia in the second semifinal on Wednesday, then the final could see the two youngest teams in the knockout round fighting not just for this trophy but for the momentum that could then help them win more. For months, Deschamps has been downplaying expectations by making out that France's youth was a drawback, not its strength. True, the France team that won the World Cup in 1998 with Deschamps as its captain was considerably older. But the strength of this team is that its young players already have wise heads that belie their tender years. Just 25, Raphael Varane is a rock in the French defence, with a young man's speed but the big-game maturity from having won multiple trophies with Real Madrid. With his partner at the back, Samuel Umtiti, still just 24, France has a central defensive pairing that should frustrate attackers long into the future. Umtiti's winner against Belgium was only his third goal for France. But its quality — he out-jumped the taller Marouane Fellaini to head in a corner — suggested there could be more where that came from. Paul Pogba, at 25, is curbing his natural exuberance, his playground-football instincts and putting in more sober, stable performance in the midfield. On the flanks, left-back Lucas Hernandez and right-back Benjamin Pavard, both aged 22, continue to impress. Pavard struggled at times against the speed of Belgium's Eden Hazard and played with more restraint than in previous games, missing several opportunities to get the ball to Mbappe when he was making runs. But Pavard and Hernandez have shown they are very quick studies. The victory against Belgium was, for each of them, only the 11th time they have played for France. Remarkable that their 12th game will be a World Cup final. Digging up these two treasures was one of Deschamps' smartest moves. The big questions for France ahead of Sunday revolve around its central strike partnership of Antoine Griezmann and Olivier Giroud. Both squandered chances against Belgium. Griezmann, at 27, still has a future with France. But Giroud, at 31, is increasingly looking like the odd man out, the ponderous weak link when France is surging forward at speed, unable to keep up with Mbappe's inventiveness and his Usain Bolt-like runs. After Russia, one answer may be to move Mbappe to the centre of the France attack and put Giroud out to pasture. But how and where to best use Mbappe is a good problem to have. First things first: Win Sunday, turn all this youthful promise into a trophy, so others can follow. ___ John Leicester is an international sports columnist for The Associated Press. Write to him at jleicester@ap.org or follow him at http://twitter.com/johnleicester
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