Macro Roundup (Aug 1)

SHANGHAI, Aug 1 —This is a roundup of global macroeconomic news last Friday and what is expected today.

The British pound ended July with another weak showing on Friday after U.S. inflation data boosted the dollar again.

The pound fell almost 1% during afternoon trading as it moved mainly on a rallying dollar after key U.S. inflation data, but pared losses in the late afternoon to end the month about 0.1% down.

The pound was down virtually flat against the dollar by 11:09 a.m. ET at $1.2163 pence, having earlier fallen 0.9%.

The dollar rallied on Friday afternoon after news U.S. consumer spending increased more than expected in June.

During 2022, sterling has recorded just one month of gains versus the dollar - rising marginally in May - but has racked up a 10.1% loss since January against a backdrop of economic slowdown, rising interest rates and domestic political turmoil.

Stock futures fell slightly following the market’s best month since 2020 as investors look ahead to another week of key earnings reports and economic data.

The Dow Jones Industrial Average futures fell by 67 points, or 0.2%. S&P 500 futures shed around 0.2% and Nasdaq 100 futures dipped by 0.3%.

On Friday, all major indexes gained, posting winning weeks and capping off the best month of the year so far and then some. The Dow gained 6.7% in July, while the S&P 500 added 9.1%. The Nasdaq Composite rose 12.4% as investors rushed into the tech stocks beaten up the most during this bear market. For each index, July’s performances were the best since 2020.

Oil prices rose in European trading on Friday as attention turned to next week’s OPEC+ meeting and expectations that it will dash U.S. hopes for a supply boost.

Brent crude futures for September settlement, due to expire on Friday, gained $2.89 to trade at $110.03 a barrel. The more active October contract was up $2.30 at $104.13.

U.S. West Texas Intermediate (WTI) crude futures advanced 3.4% to $99.67.

Both contracts are set for a second monthly loss, however, down 4.6% and 6.8%, respectively.

A weaker dollar and stronger equities also lent support on Friday. A fall in the dollar makes oil cheaper for buyers with other currencies.

Gold bounced to a fresh multi-week peak on Friday with its safe-haven allure getting a fillip as the dollar gave up initial gains following another jump in U.S. inflation, with the current price range also seemingly attracting bids for bullion.

Spot gold rose 0.4% to $1,761.59 per ounce. U.S. gold futures rose 0.7% to $1,762.9.

U.S. consumer spending increased more than expected in June, with monthly inflation surging by the most since 2005.

The Stoxx 600 climbed 1.3%, with oil and gas stocks climbing 2.9% to lead the gains as almost all sectors finished in positive territory, apart from health care, which slipped 0.4%.