SHANGHAI, Feb 21 —This is a roundup of global macroeconomic news last night and what is expected today.
The dollar was on the front foot on Monday, supported by a strong run of economic data out of the United States that traders bet will keep the Federal Reserve on its monetary policy tightening path for longer than initially expected.
The greenback firmed slightly against most major currencies in Asia trade, sending sterling 0.06% lower to $1.2035. Against the Japanese yen, the dollar stood near a roughly two-month high at 134.11.
Trading is likely to be thin on Monday, with U.S. markets closed for Presidents’ Day.
A slew of data out of the world’s largest economy in recent weeks pointing to a still-tight labor market, sticky inflation, robust retail sales and higher producer prices, have raised expectations that the U.S. central bank has more to do in taming inflation, and that interest rates would have to go higher.
Markets are now expecting the Fed funds rate to peak just under 5.3% by July.
U.S. stock futures fell Monday night following a week during which higher interest rates kept investor sentiment in check.
Dow Jones Industrial Average futures dipped 102 points, or 0.3%. S&P 500 futures also dipped 0.3%, and Nasdaq-100 futures pulled back by 0.1%. U.S. markets were closed Monday due to the Presidents Day holiday.
The Dow fell 0.1% last week, marking its third straight weekly decline. The S&P 500 slid for a second consecutive week, losing 0.3%. The tech-heavy Nasdaq Composite bucked the trend, rising 0.6%.
Those moves came as traders grappled with hotter-than-expected inflation data, which pushed Treasury yields to levels not seen since November. Traders are worried that stubborn inflation will lead the Federal Reserve to keep rates higher for longer — which could tip the economy into a recession.
Oil prices were little changed in early Asian trade on Monday, after settling down $2 a barrel on Friday, as rising supplies in the United States and forecasts of more interest rate hikes cooled optimism over China’s demand recovery.
Brent crude slid 9 cents, or 0.1%, to $82.91 a barrel by 0051 GMT. U.S. West Texas Intermediate crude for March, which expires on Tuesday, was at $76.40 a barrel, up 6 cents. The more active April contract fell 9 cents to $76.46.
Gold prices were stuck in a tight range on Monday, as bets of more interest rate hikes from the U.S. Federal Reserve dimmed the outlook for non-yielding bullion and boosted the dollar.
Spot gold was little changed at $1,842.40 per ounce, as of 0347 GMT, after falling to its lowest since late December in the previous session. U.S. gold futures edged up 0.1% to $1,851.30.
European markets closed slightly higher Monday after a choppy day of trading, with attention this week set to be on the publication of Federal Reserve meeting notes.
The pan-European Stoxx 600 index moved between slight losses and gains throughout the session. It closed up 0.1%.
