Macro Roundup (Nov 25)

SHANGHAI, Nov 25 —This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar was broadly weaker on Thursday as investors, encouraged by the prospect of a slower pace of interest rate hikes from the Federal Reserve, placed bets on riskier assets.

The eagerly awaited readout of the Nov. 1-2 Fed meeting showed officials were largely satisfied they could now move in smaller steps.

The dollar index, which measures the greenback against six major peers, was down 0.066% at 105.830, after sliding 1% overnight.

This month, the Fed raised its key rate by three-quarters of a percentage point for the fourth straight time in an effort to tame stiflingly high inflation.

But slightly cooler-than-expected U.S. consumer price data has stoked hopes of a more moderate pace of hikes. Those hopes have seen the dollar index slide 5.1% in November, putting it on track for its worst monthly performance in 12 years.

Citi strategists said there is still substantial uncertainty around how high rates might climb, despite the consensus that rates will rise more slowly.

Oil prices fell on Thursday, extending losses from the previous session, as fears of supply disruption eased on news that the Group of Seven (G7) nations were considering a high price cap on Russian oil.

A greater-than-expected build-up in U.S. gasoline inventories added to downward pressure.

Brent crude futures had slid 43 cents, or 0.5%, to $84.98 a barrel by 0102 GMT, while U.S. West Texas Intermediate futures dropped 35 cents, or 0.5%, to $77.59 a barrel.

Both benchmark contracts plunged more than 3% on Wednesday on news that the planned price cap could be above the current market level.

The G7 is looking at a cap on Russian seaborne oil in the range of $65-70/bbl, according to a European official, though European Union governments have not yet agreed with each other on the matter.

Gold prices bounced above the key $1,750 an ounce level on Thursday, consolidating gains after minutes of the U.S. Federal Reserve’s latest meeting signalled slower interest rate hikes.

Spot gold rose 0.4% to $1,755.73 per ounce by 0321 GMT. U.S. gold futures advanced 0.6% to $1,755.90.

The pan-European Stoxx 600 closed up 0.5% provisionally, with a third straight session of gains taking it to a more than three-month high. Chemicals stocks added 1.1% to lead gains as all sectors and major bourses edged into positive territory.