Macro Roundup (May 27)

SHANGHAI, May 27 —This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar edged lower on Thursday as markets considered whether the Federal Reserve might slow or even pause its tightening cycle in the second half of the year, which would weaken the allure of the safe haven currency.

The dollar index, which measures the greenback against a basket of six major peers, was down 0.28% at 101.77 at 4:10 p.m. ET.

The currency began to weaken after minutes from the Fed’s May meeting, released Wednesday, showed that most participants judged that 50 basis-point hikes would likely be appropriate at the June and July policy meetings to combat inflation that they agreed had become a key threat to the economy’s performance.

Many of the participants believed that getting rate hikes in the books quickly would leave the central bank well positioned later this year to assess the effects of policy firming, the minutes showed.

Stock futures were little changed in overnight trading as the S&P 500 attempted to snap a seven-week losing streak.

Futures on the Dow Jones Industrial Average shed about 40 points. S&P 500 futures and Nasdaq 100 futures were near flat.

The postmarket moves came after stocks gained in Thursday’s regular session. The Dow rose for a fifth-straight trading day, adding more than 500 points, or 1.6%. The S&P 500 climbed about 2% and the Nasdaq Composite rose nearly 2.7%.

Oil prices climbed about 3% to a two-month high on Thursday on signs of tight supply ahead of U.S. summer driving season, as the European Union (EU) wrangled with Hungary over plans to ban crude imports from Russia over its invasion of Ukraine.

Brent futures settled $3.37 higher at $117.40 a barrel. U.S. West Texas Intermediate (WTI) crude settled 3.4% higher at $114.09 per barrel.

Brent was on track for its sixth straight daily gain and highest close since March 25. WTI was headed for its highest close since March 23.

Gold prices slipped on Thursday, with some investors cashing in after minutes of a U.S. Federal Reserve policy meeting showed that the central bank was likely to stay the course on interest-rate hikes.

Spot gold dipped 0.1% to $1,851.57 per ounce. U.S. gold futures edged up 0.2% to $1,849.8.

The pan-European Stoxx 600 closed 0.9% higher provisionally, with retail shares surging 4.8% to lead the gains. The sector got a boost from news of U.K. plans to boost economic activity.

British Finance Minister Rishi Sunak on Thursday announced a range of measures aimed at tackling the country’s cost-of-living crisis, including a so-called “windfall tax” on the profits of oil and gas giants and cost-of-living payments to low-income households and pensioners.