Macro Roundup (Jun 20)

SHANGHAI, Jun 20 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar rose from a one-week low against major peers, bouncing off a two-day slide after the Fed’s mid-week rate increase of 75 basis points, a move that was anticipated by markets as the Fed attempts to tame stubbornly high inflation.

The dollar index, which measures the currency against a basket of six rivals, was up 1.01% at 104.68, putting it on track for a weekly rise of around 0.4% ahead of a long weekend in the United States.

The S&P 500 and the Nasdaq Composite bounced on Friday as Wall Street attempted to find its footing following a brutal week of selling. But all the major averages ended the week in the negative, with the S&P 500 posting its worst week since 2020.

The Dow Jones Industrial Average slipped 38.29 points, or 0.13% to 29,888.78, while the S&P 500 gained 0.22% to close at 3,674.84. The Nasdaq jumped 1.43% to 10,798.35.

Stocks were volatile during Friday’s trading, switching between gains and losses as investors grew increasingly worried about a potential economic slowdown.

Several key pieces of economic data fell short of forecasts this week, ranging from May retail sales to housing starts. Additionally, the Federal Reserve raised its benchmark interest rate by the most since 1994.

Oil prices tumbled about 6% to a four-week low on Friday on worries that interest rate hikes by major central banks could slow the global economy and cut demand for energy.

Brent futures fell $6.69, or 5.6%, to settle at $113.12 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $8.03, or 6.8%, to settle at $109.56.

That was the lowest close for Brent since May 20 and the lowest for WTI since May 12. It was also the biggest daily percentage decline for Brent since early May and the biggest for WTI since late March.

For the week, Brent futures declined for the first time in five weeks, while WTI dropped for the first time in eight weeks.

Gold fell on Friday and posted a more than 1% fall for the week, dented by a stronger dollar and hawkish policy signals from major central banks even as recessionary fears loom.

U.S. gold futures fell 0.5% on Friday to $1,840.6. Gold futures closed down 1.86% week to date, posting its second negative week in three.

Spot gold fell 1.1% to $1,836.26 per ounce.

The pan-European Stoxx 600 provisionally ended 0.1% higher, with tech stocks up 1.4% to lead gains as most sectors traded in positive territory. Oil and gas stocks tumbled over 4%.