Macro Roundup (Apr 16)

SHANGHAI, Apr 16 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar index was little changed on the day on Thursday as investors balanced bullish data showing U.S. retail sales rose by the most in 10 months in March against a continued drop in U.S. Treasury yields.

Retail sales increased 9.8% last month, the Commerce Department said on Thursday, beating economists’ expectations for a 5.9% increase.

Meanwhile, U.S. jobless claims dropped to the lowest level since March 2020. The Labor Department reported 576,000 first-time filings for unemployment insurance for the week ended April 10. Economists polled by Dow Jones expected a total of 710,000.

On Wall Street, stock futures were little changed in overnight trading on Thursday after the Dow Jones Industrial Average crossed the 34,000 threshold for the first time ever.

Futures on the Dow Jones Industrial Average dipped 10 points. S&P 500 futures traded near the flatline and Nasdaq 100 futures fell 0.2%.

During regular trading hours, the blue-chip Dow rose 300 points to top the 34,000 milestone amid blowout economic data. The S&P 500 and the Nasdaq Composite gained more than 1% each on Thursday.

“The Dow’s push through 34,000 is a signal that investor appetite for future growth prospects is spilling over into more value-oriented names,” said Peter Essele, head of portfolio management at Commonwealth Financial Network. “The demand for industrials and more cyclically-oriented areas should continue as the vaccines take hold and earnings potentially come in higher than originally expected.”

Oil prices were lower on Thursday though holding near one-month highs after futures jumped in the previous as the International Energy Agency (IEA) and others upgraded forecasts for oil demand as major economies recover from the pandemic.

Brent crude gained 0.54% to settle at $66.94 per barrel per barrel, after gaining 4.6% on Wednesday and closing at the highest since March 17.

U.S. West Texas Intermediate futures advanced 0.49% to settle at $63.46 per barrel, having risen 4.9% in the previous session.

Gold scaled a more than one-month peak on Thursday as U.S. Treasury yields slipped despite better-than-expected U.S. economic data, pushing investors to bullion as a refuge against possible inflation ahead.

Spot gold rose 1.8% to $1,766.50 per ounce, having earlier risen to $1,769.37, its highest since Feb. 26. U.S. gold futures settled 1.8% higher at $1,766.80.

Investors in Europe had an eye on a host of March inflation data out of major economies on the continent. Germany’s overall non-harmonized consumer price index came in at 0.5% on a monthly basis and 1.7% year-on-year. France’s official statistics agency reported monthly harmonized CPI inflation at 0.7% in March.

A slew of Chinese economic data — including the country’s first quarter gross domestic product and industrial production for March — is expected to be out at around 10:00 a.m. HK/SIN on Friday.