Macro Roundup (Jan 27)

SHANGHAI, Jan 27 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The US dollar fell across the board as riskier currencies found a firmer footing on Tuesday, a day after worries over vaccine rollouts and the outlook for US fiscal stimulus boosted demand for safe havens.

Mounting coronavirus cases and caution ahead of the US Federal Reserve's policy meeting this week has dulled appetite for risk, lending support to the dollar against a basket of currencies in recent sessions, but investors were once again nibbling at riskier currencies on Tuesday.

The US Dollar Currency Index was 0.19% lower at 90.173. The index rose as high as 90.614, its strongest since Jan. 20, earlier in the session.

The dollar appeared to be taking its cue from overall risk sentiment in the market, said Michael Brown, senior analyst at payments firm Caxton, in London.

Data on Tuesday showed U.S. consumer confidence rose moderately in January amid lingering concerns about the COVID-19 pandemic.

On Wall Street, futures contracts tied to the major US equity indexes rose during the overnight session Tuesday as Wall Street pored over earnings results from Microsoft and awaited similar updates from Apple, Facebook and Tesla due Wednesday.

Nasdaq-100 futures outperformed with a gain of about 93 points, or 0.74%. Dow futures added 30 points and S&P 500 futures rose 8.25 points, or 0.25%.

A handful of stocks, including software giant Microsoft, dominated the trading action in the extended session.

Microsoft investors appeared pleased with the company's performance in its fiscal second quarter, when it grew revenues 17% on a year-over-year basis. Adding to the optimism of Microsoft's profit report was a jump in the company's Intelligent Cloud unit, a segment investors think critical to the company’s future success.

Oil prices eased on Tuesday as coronavirus cases globally continued to rise, but losses were capped amid reports of a blast in Saudi Arabia.

Brent crude was down 11 cents, or 0.2%, at $55.77, while U.S. West Texas Intermediate crude fell 30 cents, or 0.6%, to $52.47.

Indonesia, the world's fourth-most-populous country, surpassed a million confirmed coronavirus cases on Tuesday while the number of cases in the United States crossed 25 million on Sunday, a tally showed.

Prices edged up after reports of a blast in the Saudi Arabian capital Riyadh, although the cause remains unclear.

Oil prices were also supported as geopolitical tensions flared after two supertankers, with crew members from Iran and China, were seized on Sunday in Indonesian waters near Kalimantan Island for suspected illegal oil transfers.

Gold prices edged lower on Tuesday on concerns over a fresh US coronavirus aid package, while a slightly weaker dollar and subdued treasury yields limited losses and investors kept a close eye on the Federal Reserve’s policy meeting.

Spot gold was down 0.2% to $1,851.26 per ounce at. U.S. gold futures settled down 0.2% at $1,850.90.

“There is no clarity on where fiscal spending is going, there is no full clarity of how the central bank is going to react ... these uncertainties are serving as a cap on gold,” said Bart Melek, head of commodity strategies at TD Securities.

However, the dollar slipped from a near one-week high, raising gold’s appeal for other currency holders.

“The US dollar came off a little bit and that’s typically a supportive factor.”

US President Joe Biden’s $1.9 trillion pandemic relief proposal faces hurdles as Republicans voiced concerns over the cost and lobbied for a smaller plan targeting vaccine distribution.

German Gfk Consumer Confidence Index for February, monthly rate of US Durable Goods Orders for December and weekly crude oil inventories as of January 22 will be released today.