Macro Roundup (Mar 2)

SHANGHAI, Mar 2 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar slumped and China’s yuan gained on Wednesday after China’s manufacturing activity expanded at its fastest pace since April 2012, while the euro rose after regional German inflation data signaled price pressures remain high.

The Australian and New Zealand dollars were also among the beneficiaries of the robust Chinese data, which smashed expectations with the official manufacturing purchasing managers’ index (PMI) shooting up to 52.6 last month from 50.1 in January.

China’s non-manufacturing activity also grew at a faster pace in February, while the Caixin/S&P Global manufacturing PMI reading for last month likewise surpassed market expectations.

The onshore yuan finished the domestic session at 6.8854 per dollar, the strongest close since Feb. 21, while the offshore yuan jumped 1.3% to 6.8683 per dollar, set for its largest one-day gain since late November.

Futures tied to the Dow Jones Industrial Average rose in overnight trading as earnings season pressed on and Salesforce shares popped on a strong quarter and forward guidance.

Futures tied to the Dow jumped 191 points, or 0.58%. S&P 500 futures and Nasdaq 100 futures added 0.20% and 0.22%, respectively.

Wednesday marked the first trading day of March. All the major averages finished lower as bond yields rocketed higher, with the yield on the 10-year Treasury note hit 4% for the first time since November.

The tech-heavy Nasdaq Composite led Wednesday’s losses, falling 0.66%, while the S&P 500 dipped 0.47%. The Dow Jones Industrial Average added just 5.14 points. The S&P 500 and the Nasdaq are on pace for their second consecutive losing week for the first time since December. The Dow, meanwhile, is on track for its fifth consecutive negative week, a first since May 2022.

Oil prices settled up slightly on Wednesday as signs of ample supply, including growing U.S. crude inventories, offset growing hopes for higher demand after a jump in manufacturing in top crude importer China.

Brent crude futures settled up 86 cents, or 1%, to $84.31 a barrel. U.S. West Texas Intermediat crude (WTI) settled up 64 cents, or 0.8%, to $77.69.

Gold prices gained 1% on Wednesday as strong Chinese economic data dented the dollar and drove some bets for better physical demand from the top bullion consumer, although the risk of rising U.S. interest rates capped gains.

Spot gold was last up 0.54% at $1,837.05 per ounce, rising up to $1,844.5 earlier, their highest in a week. U.S. gold futures settled up 0.5% at $1,845.40.

European markets closed lower Wednesday after data showed an increase in German harmonized inflation in February.

The Stoxx 600 index closed 0.7% lower after trading slightly higher through the morning. Mining stocks powered ahead, up 2.2%, while utilities dropped 2.6%.