Macro Roundup (Jun 11)

SHANGHAI, Jun 11 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

US dollar index was down slightly on Thursday after alternating between losses and gains earlier in the session as investors digested elevated US inflation and European Central Bank commentary while eyeing the US Federal Reserve’s next meeting.

After adopting a wait-and-see attitude all week, sucking volatility from the market and leaving major currencies mostly range-bound, Thursday’s developments appeared to add little new direction to currency markets.

Earlier in the day, the ECB raised its growth and inflation views but promised to keep ample stimulus flowing, fearing that a retreat now would accelerate a worrisome rise in borrowing costs and choke off recovery.

Then in the United States, data showed that the number of Americans filing new claims for unemployment benefits fell last week to the lowest level in nearly 15 months, while consumer prices increased further in May as the pandemic’s easing grip on the economy continued to boost domestic demand.

While emerging market currencies such as the Turkish lira showed more pronounced reactions, dollar traders were already cautiously looking ahead to the US Federal Open market Committee (FOMC) policy meeting scheduled for next week.

On Wall Street, US stock futures were flat Thursday night after the S&P 500 hit a new high during regular trading, despite hotter-than-expected inflation data.

Futures tied to the Dow Jones Industrial Average and the S&P 500 were close to flat at the start of the overnight session. Nasdaq futures rose 0.1%.

During the regular session, the Dow Jones Industrial Average rose 19 points, or 0.06% to 34,466.24. The S&P 500 ended the day up 0.47% at 4,239.18. The Nasdaq Composite ended the day up 0.78% at 14,020.33.

The Labor Department reported consumer price index data on Thursday, showing inflation is rising at its fastest pace since 2008 as the economy rebounds from the pandemic-related recession.

Oil prices edged up to their highest in over two years in volatile trade on Thursday, on optimism for strong economic demand after new US unemployment claims fell to their lowest since the country’s first wave of COVID-19 last year.

The market shook off a brief plunge after media reports suggested the United States lifted sanctions on Iranian oil officials.

Brent futures rose 30 cents, or 0.4%, to settle at $72.52 a barrel, while US West Texas Intermediate (WTI) crude rose 33 cents, or 0.5%, to end at $70.29.

Gold prices nudged up on Thursday after data showed US consumer prices increased more than expected last month but eased fears over the Federal Reserve tapering its monetary support.

Spot gold rose 0.3% to $1,893.75 per ounce by 1:43 p.m EDT (1743 GMT), having earlier hit its lowest level since June 4 at $1,869.46.

US gold futures settled at 1,896.40 an ounce.

European stocks closed mixed Thursday as traders digested new US inflation data a monetary policy decision from the European Central Bank.

The pan-European Stoxx 600 closed marginally higher, with the major bourses struggling for direction. In terms of sectors, telecoms stocks rose 1.2% while travel shares slipped 1.2%.

Global markets were predominantly focused on the US inflation data on Thursday