Macro Roundup (May 12)

SHANGHAI, May 12 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar was lower on Wednesday after economic data showed inflation remained high but was unlikely to lead the Federal Reserve to shift to a more aggressive path of monetary policy.

The consumer price index rose 0.3% last month, the smallest gain since August, the Labor Department said on Wednesday, versus the 1.2% month-to-month surge in the CPI in March, the largest advance since September 2005.

On an annual basis, CPI climbed 8.3%, higher than the 8.1% estimate but below 8.5% the prior month.

The data signaled inflation may have peaked but was unlikely to quickly cool and derail the Fed’s current plans to tighten monetary policy.

The dollar index , which had touched a four-session low of 103.37 ahead of the report, immediately strengthened to a session high of 104.13 following the data, just below the two-decade high of 104.19 reached on Monday.

Stock futures were slightly higher Wednesday evening after the latest CPI data showed inflation is still running hot.

Futures tied to the Dow Jones Industrial Average added 70 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures each added 0.2% also.

In regular trading, the Dow fell 326 points, or 1.02%. The S&P 500 slipped 1.65% and the Nasdaq Composite dropped 3.18%.

While the market briefly turned positive at one point in the session, the S&P 500 at one point touched a new 52-week low and eventually closed at its lowest level of the year. The S&P 500 is more than 18% off its high and down more than 17% since the start of the year.

Oil prices jumped on Wednesday after plunging nearly 10% in the previous two sessions, buoyed by supply concerns as flows of Russian gas to Europe fell and the European Union worked on gaining support for a Russian oil embargo.

Russian gas flows to Europe via Ukraine fell by a quarter after Kyiv halted use of a major transit route blaming interference by occupying Russian forces. It was the first time exports via Ukraine have been disrupted since the invasion.

Brent crude rose $5.63, a 5.5% increase, to $108.09 a barrel by 1:13 p.m. EDT. U.S. West Texas Intermediate crude climbed $6.47 to $106.23.

Gold resumed its climb on Wednesday after a knee-jerk retreat tied to the release of U.S. inflation data, as the dollar slipped with investors latching on to a slight cooling of consumer prices.

Spot gold was up 0.8% to $1,852.15 per ounce by 11:53 a.m. EDT (1553 GMT). U.S. gold futures gained 0.7% to $1,852.80.

The pan-European Stoxx 600 provisionally closed up 1.6%, with autos jumping 3.6% to lead gains as all sectors traded in positive territory except health care, which fell 1.2%.

The gains in Europe come after some choppy trading sessions in the region, and in markets further afield. European stocks climbed on Tuesday as global markets rebounded from a broad sell-off in recent days, prompted mainly by concerns over inflation and rising interest rates — and the potential for a global recession.