SHANGHAI, May 22 - This is a roundup of global macroeconomic news last night and what is expected today.
The dollar fell on Friday after Federal Reserve Chair Jerome Powell struck a moderately dovish stance, contrary to market expectations, saying that given how credit conditions have tightened, the U.S. central bank may not need to raise interest rates as much.
Stock futures retreated slightly on Sunday evening as traders monitored the negotiations over the U.S. debt ceiling.
Futures for the Dow Jones Industrial Average ticked down 48 points, or about 0.1%. S&P 500 futures dipped about 0.2%, and Nasdaq 100 futures also shed 0.1%.
Stocks rose last week despite the uncertainty in Washington. The Nasdaq Composite climbed 3.04%, while the S&P 500 gained 1.65%. The Dow added 0.38%.
Oil prices reversed course to fall on Friday after U.S. House Republicans and President Joe Biden’s administration paused talks about raising the government’s debt ceiling, threatening a default that could cut energy demand.
Brent futures settled 28 cents, or 0.8%, lower at $75.58 a barrel, while West Texas Intermediate U.S. crude for July expiry fell 25 cents, or 0.3%, to $71.69.
Gold rallied 1% on Friday, recouping some losses from earlier this week, on renewed worries about the stability of the banking sector, while traders slashed bets for another interest rate hike following remarks from the U.S. Federal Reserve chairman.
Spot gold gained 1.2% to $1,981.79 per ounce by 12:30 p.m. ET (1830 GMT). U.S. gold futures settled 1.1% higher at $1,981.60.
Hong Kong’s Hang Seng index rose 0.16%, while the Hang Seng Tech index also rose 0.39%. In mainland China, the Shanghai Composite slid 0.15% and the Shenzhen Component was 0.44% lower as the People’s Bank of China left its 1-year and 5-year loan prime rates unchanged.
European markets closed higher Friday as U.S. debt ceiling talks boosted investor sentiment.
The pan-European Stoxx 600 index closed up 0.77%, with all sectors in the green bar retail, which dipped 0.8%. Financial services led gains, with a 2.2% uptick, followed by construction stocks, which were up 1.56%.