SHANGHAI, Feb 14 —This is a roundup of global macroeconomic news last night and what is expected today.
The dollar rose to six-week highs against the rate-sensitive Japanese yen in choppy trading on Monday, on expectations the Federal Reserve will keep monetary policy tight for longer, sending short-term U.S. Treasury yields higher.
The U.S. currency, however, fell against most currencies as investors pared back long dollar positions after a strong rally last week.
Expectations for U.S. rates to remain higher for longer will be challenged or reinforced by the week’s main event - the release of U.S. consumer price data on Tuesday - which loomed over Monday’s trading.
The dollar rose to 132.91 yen, the highest since Jan 6. It was last up 0.72% at 132.34 yen.
The greenback tracked the rise in the U.S. Treasury two-year yield, which was last up 4.522%, after hitting its highest since late November.
Stock futures are near flat Monday night as investors look to Tuesday’s inflation data.
Futures tied to the Dow Jones Industrial Average added 1 point, trading near flat. Meanwhile, S&P 500 and Nasdaq-100 futures also both traded near flat.
Stocks are coming off a winning day, with all three major indexes ending Monday’s session up more than 1%. That marked a turn from last week, when the Nasdaq Composite and S&P 500 posted their worst weekly performances since December.
Investors were largely positioning ahead of the consumer price index reading for January set to be released at 8:30 a.m. ET Tuesday. The CPI is gauge of inflation that tracks changes in prices across a broad basket of items.
Economists polled by Dow Jones expect CPI rose 0.4% from December, and they predict the index climbed 6.2% compared to the prior year. Core CPI, which excludes food and energy, is expected to rise 0.3% from the prior month and 5.5% compared with the same month a year ago.
Oil prices edged higher on Monday, rebounding from early losses as investors weighed Russia plans to cut crude production and short-term demand concerns ahead of U.S. inflation data.
Brent futures for April delivery rose 22 cents, or 0.3%, to $86.61 a barrel, while U.S. crude rose 42 cents, or 0.5%, to $80.14 per barrel gain.
Gold prices dipped on Monday as investors braced for much awaited U.S. January consumer price index data that could steer the Federal Reserve’s rate-hike strategy.
Spot gold last fell 0.57% to $1,854.04 per ounce, while U.S. gold futures settled 0.6% lower at $1,863.50.
European markets had a solid start to the week as investors assessed the economic outlook and the potential for further monetary policy tightening from the U.S. Federal Reserve.
The pan-European Stoxx 600 index closed 0.9% higher provisionally, with most sectors and major bourses finishing in positive territory. Household goods led gains with a 2% increase, while oil and gas stocks slipped 0.2%.
