Macro Roundup (Feb 24)

SHANGHAI, Feb 24 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar was steady against its major peers on Thursday, as new data showed a still-tight U.S. labor market, underpinning convictions that the Federal Reserve’s monetary policy tightening may be far from over.

The number of Americans filing new claims for unemployment benefits unexpectedly fell in the week ended Feb. 18, decreasing 3,000 to a seasonally-adjusted 192,000, according to the Labor Department.

The dollar index, which tracks the greenback against six major peers, dipped slightly 0.01% to 104.58, slipping below the 104.68 high seen in late morning trading in Europe but little changed since yesterday’s session.

The index climbed 0.36% on Wednesday as minutes from the Fed’s Jan. 31-Feb. 1 meeting showed nearly all policymakers favored a slowing in the pace of interest rate hikes, but also indicated that curbing unacceptably high inflation would be the “key factor” in how much further the U.S. central bank’s benchmark overnight interest rate would need to rise. That rate is currently in the 4.50%-4.75% range, having risen rapidly from the near-zero level in March 2022.

U.S. stock futures were flat Thursday night after the S&P 500 snapped a four-day losing streak.

Dow Jones Industrial Average futures fell by 22 points, or 0.07%. S&P 500 and Nasdaq 100 futures dipped 0.03% and 0.11%, respectively.

During Thursday’s session, the S&P 500 advanced 0.53%. Meanwhile, the Dow Jones Industrial Average gained 108.82 points, or 0.33%, while the Nasdaq Composite rose 0.72%.

Even so, the major averages are headed for a losing week. The S&P 500 is down 1.64% through Thursday, and is set for its worst week since Dec. 16. The Dow is down nearly 1.99% this week, and headed for its fourth straight losing week. The Nasdaq is 1.67% lower, and on pace for its second negative week in three.

Oil prices settled up 2% on Thursday on expectations of steep cuts to Russian production next month, but a stronger dollar and a sharper-than-expected jump in U.S. inventories added to demand concerns.

Brent crude futures settled up $1.61, or 2%, to $82.21 a barrel, compared with about $98 a barrel on the eve of Russia’s invasion of Ukraine a year ago.

West Texas Intermediate crude futures (WTI) settled up $1.44, or 2%, to $75.39 a barrel, ending a sixth session losing streak.

Gold prices slipped to their lowest in about two months on Thursday, after a drop in U.S. weekly jobless claims numbers favored the Federal Reserve’s stance that interest rates would have to go higher to control inflation.

Spot gold was down 0.1% at $1,822.5 per ounce by 4:16 p.m. ET, having touched their lowest level since Dec. 30 earlier. U.S. gold futures fell 0.8% to settle at $1,826.8.

European markets closed slightly higher Thursday as investors digested minutes released by the U.S. Federal Reserve that showed members are still committed to fighting inflation with interest rate hikes.

The pan-European Stoxx 600 index closed 0.1% higher, with oil and gas stocks adding 1.1% and tech shaking off recent pessimism to gain 0.4%. Mining stocks led losses, dropping 1.6%.