Macro Roundup (Apr 17)

SHANGHAI, Apr 17 - This is a roundup of global macroeconomic news last Friday night and what is expected today.

The U.S. dollar rebounded from an initial drop after data showed U.S. retail sales fell more than expected in March as consumers cut back on purchases of motor vehicles and other big-ticket items.

The euro fell 0.44% to $1.0995 after hitting $1.10755, the highest since last April. The dollar gained 0.9% against the Japanese yen to 133.75.

Core retail sales, which correspond most closely with the consumer spending component of gross domestic product, slipped 0.3% last month. However, despite March’s fall, the gains in January and February put consumer spending firmly on track to accelerate in the first quarter.

Fed funds futures traders are pricing in an 81% probability that the Fed will hike by an additional 25 basis points at its May 2-3 meeting.

Stock futures ticked higher on Sunday, with investors eying the health of corporate America ahead of a crucial earnings week.

Futures tied to the S&P 500 gained 0.2%, or 7 points, while Nasdaq-100 futures added 0.1%. Dow Jones Industrial Average futures also ticked up 49 points, or 0.14%.

Corporate earnings got off to a positive start, as banking giants Wells Fargo and JPMorgan Chase beat expectations. Still, discouraging retail sales data showing a slowdown in consumer spending by 1% in March pulled markets lower Friday.

For the week, however, stocks remained resilient. The Dow was positive overall last week for the fourth straight time, while the S&P 500 and Nasdaq Composite both had their fourth week in the green in five.

Oil prices were up on Friday and secured a fourth straight week of gains after the West’s energy watchdog said global demand will hit a record high this year on the back of a recovery in Chinese consumption.

The International Energy Agency (IEA) also warned that deep output cuts announced by the Organization of the Petroleum Exporting Countries (OPEC) and other producers led by Russia - a group known as OPEC+ - could exacerbate an oil supply deficit and hurt consumers.

Brent crude futures settled at $86.31 a barrel, rising 22 cents, or 0.3%. West Texas Intermediate crude futures (WTI) settled at $82.52 a barrel, gaining 36 cents, or 0.4%.

Gold prices pulled back sharply on Friday after surging to a more than one-year peak in the last session, as the dollar bounced and a Federal Reserve official flagged the need for another interest rate hike.

Spot gold was last down 1.69% at $2,005.35 per ounce. U.S. gold futures settled 1.9% lower at $2,015.80.

European stock markets closed higher on Friday as traders digested U.S. economic data as well as the start of earnings season.

The pan-European Stoxx 600 index provisionally closed 0.53% higher, its fourth consecutive positive session. It takes its gains for the week to 1.15%, according to Eikon data.