Macro Roundup (Feb 8)

SHANGHAI, Feb 8 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar lost out to the euro after Friday’s U.S. jobs report suggested that some traders may have over-played a stronger American recovery from the coronavirus pandemic.

The dollar index of a basket of currencies was down 0.5% at 91.028, but still holding a weekly gain of 0.6%.

The report showed U.S. employment growth rebounded less than expected in January and job losses the prior month were deeper than initially thought, strengthening the argument for additional relief money to aid the recovery from the COVID-19 pandemic.

The U.S. Labor Department reported that the U.S. added 49,000 jobs in January, while the unemployment rate fell to 6.3%, in the first employment report of the Biden administration.

On Wall Street, the S&P 500 closed at a record high on Friday and posted its fifth straight positive session for the first time since August. The Dow is also on its longest daily winning streak since August, while the Nasdaq Composite registered its fourth positive session in five on Friday. The tech-heavy index also closed at a record high.

Oil prices hit its highest in a year on Friday, closing in on $60 a barrel, supported by economic revival hopes and supply curbs by producer group OPEC and its allies.

Gold rebounded above the $1,800 psychological level on Friday, helped by a retreat in the dollar and data showing slower-than-expected growth in U.S. employment underpinning the need for additional financial support.

Spot gold climbed 1% to $1,810.26 per ounce by 1:58 p.m. EST , after falling to its lowest since Dec. 1 on Thursday. U.S. gold futures settled up 1.2% at $1,813.

On the coronavirus front, more contagious variants continue to spread throughout the U.S. On Friday Virginia health officials reported the state’s first case of the strain first identified in South Africa. On Sunday South Africa halted distribution of AstraZeneca’s vaccine given its minimal efficacy against the strain first identified in the country.

In the U.S. the vaccine rollout continues. “Boots on the ground are becoming increasingly efficient at distributing the vaccine, and positive trial data boosted hope that a third vaccine soon may be made available for emergency use,” noted Ryan Detrick, chief market strategist for LPL Financial. “Obviously, as a larger proportion of the population receives their vaccinations, economic activity can pick up and hiring in hard-hit service jobs can resume.”

Investors will be watching Hong Kong listed shares of Chinese tech giants Alibaba, Tencent and JD.com on Monday. That comes after China’s State Administration for Market Regulation released a new set of rules that are set to put pressure on leading internet services in the country such as Alibaba’s Taobao or Tencent’s WeChat Pay.