SHANGHAI, Dec 10 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.
The U.S. dollar rose against a basket of currencies on Thursday as increased restrictions in parts of the world to contain the spread of COVID-19, including the new Omicron variant, tempered investors’ appetite for riskier currencies.
The U.S. Dollar Currency Index was up 0.3% at 96.233.
“We are seeing some caution in the markets because of Omicron. I think the worry that it would be worse than Delta has waned but the reports about how easily transmissible the strain is have caused extra caution,” said John Doyle, vice president of dealing and trading at FX payments firm Tempus Inc.
“There are worries about how governments could react, and the UK’s ‘Plan B’ is a great example.”
Stock futures opened little changed on Thursday after investors pulled back from the market rebound earlier in the week and turned their focus to inflation data due out Friday.
Futures contracts tied to the Dow Jones Industrial Average edged up by 20 points, or 0.06%. S&P 500 futures and Nasdaq 100 futures each added 0.1%.
The moves came after the major averages ended the regular trading session lower, each snapping a three-day win streak. The Dow, moved less than a point lower, finishing at the flatline. The S&P 500 fell 0.7% and the tech-heavy Nasdaq Composite lost 1.7%. Nevertheless, all are on track to finish the week higher.
Oil prices settled lower on Thursday on fears about the economic outlook in the world’s biggest oil importer following ratings downgrades to two Chinese property developers, and after some governments took measures to fight the Omicron variant of the coronavirus.
Brent crude futures settled down $1.40, or 1.9%, to $74.42 a barrel, backing off a session high of $76.70. U.S. West Texas Intermediate (WTI) crude futures were down $1.42, or 2%, at $70.94 after hitting a peak of $73.34.
On Thursday, ratings agency Fitch downgraded property developers China Evergrande Group and Kaisa Group to “restricted default” status, saying they had defaulted on offshore bonds, while a source said that Kaisa had started work on restructuring its $12 billion offshore debt.
Gold slipped on Thursday as the dollar firmed and data showed a big drop in U.S. jobless claims ahead of an inflation report that could influence the Federal Reserve’s monetary strategy.
Spot gold was down 0.3% at $1,776.56 per ounce, while U.S. gold futures settled down 0.5% at $1,776.70.
The pan-European Stoxx 600 closed down by 0.1% provisionally, having started the day on a positive note. Oil and gas stocks fell 1.1% to lead the losses as most sectors and major bourses fell into the red.
In the U.K., Prime Minister Boris Johnson has moved to tighten Covid restrictions in an effort to prevent a spike in hospitalizations and deaths during winter.