SHANGHAI, Feb 20 —This is a roundup of global macroeconomic news last Friday night and what is expected today.
The dollar edged lower against the euro and sterling on Friday, as the market readjusts ahead of the long weekend and awaits clues on how the Federal Reserve plans to continue tackling still-high inflation.
Several Federal Reserve officials signaled this week that the U.S. central bank likely has to raise interest rates higher to bring inflation back to its desired levels. That hawkish speak coupled with hotter-than-expected economic data has led some banks to forecast three additional rate hikes this year.
Goldman Sachs said it is expecting the Fed to hike rates three more times by a quarter of a percentage point each time, after data this week pointed to persistent inflation and resilience in the labor market.
U.S. stocks were mixed on Friday as stubbornly high inflation and a rebound in rates continued to weigh on investor sentiment.
The Dow Jones Industrial Average rose 129.84 points, or 0.39% to end at 33,826.69. The 30-stock index rallied from lows of the day boosted by shares of Amgen and United Health, which gained 2.69% and 2.41% respectively.
The S&P 500 shed 0.28% to end the day at 4,079.09, and the Nasdaq Composite fell 0.58% to close at 11,787.27. Energy was the biggest laggard. Devon Energy dropped 4.29%, dragging down the S&P 500.
Oil settled down $2 a barrel on Friday and ended the week markedly lower, as traders worried that future U.S. interest rate hikes could weigh on demand and got nervous about mounting signs of ample crude and fuel supply.
On Thursday, two Fed officials warned additional hikes in borrowing costs are essential to curb inflation. The sentiments lifted the U.S. dollar, making oil more expensive for holders of other currencies.
Brent crude futures settled down $2.14 or 2.5%, to $83.00 a barrel, falling 3.9% week on week. West Texas Intermediate (WTI) U.S. crude settled down $2.15, or 2.7%, to $76.34, falling 4.2% from last Friday’s settlement.
Gold prices on Friday were on track for their third straight weekly dip, weighed down by a stronger dollar and bond yields following fresh hawkish rhetoric from U.S. Federal Reserve officials.
Spot gold was last down 0.02% at $1,841.15 per ounce, after earlier falling to its lowest since late December. Prices have fallen 1.4% so far this week.
European markets closed slightly lower on Friday, as investors continue to assess the impact of inflation and production data from the U.S. and U.K., alongside company earnings.
The pan-European Stoxx 600 index provisionally ended the session down 0.2%, trimming losses from earlier in the day. Oil and gas stocks led losses with a 1.9% drop, followed by tech, which was down 1.6%.
