Macro Roundup (May 24)

SHANGHAI, May 24 —This is a roundup of global macroeconomic news last night and what is expected today.

The euro rallied on Monday as investors sold the dollar on hopes that loosening lockdowns in China could help global growth.

A calmer mood on equity markets in early European trading also pressured the dollar, which fell sharply last week but has been the go-to currency for investors this year when risk assets tumbled and worries about the economy and inflation jumped.

Risk-sensitive currencies rose across the board, with the Australian dollar, which initially showed a muted reaction to the expected victory for the center-left Labor Party in national elections on the weekend, soaring 1.1%.

The U.S. dollar index, up about 13% to a two-decade high over the 12 months to the middle of May, fell 1.05% to 102.07.

Sentiment around China also helped. Shanghai is edging out of lockdown and an unexpectedly big rate cut in China last week was taken as a signal that authorities are going to provide support.

Stock futures fell in overnight trading on Monday as the markets struggled to sustain a comeback rally following weeks of losses.

Futures on the Dow Jones Industrial Average fell 110 points, or 0.34%. S&P 500 futures dipped 0.69% and Nasdaq 100 futures dropped 1.33%.

The moves came as the markets staged a rebound from last week’s steep market sell-off, which saw the Dow hit its first eight-week losing streak since 1923, and the S&P 500 briefly fall into bear market territory on an intraday basis.

Stocks rallied during Monday’s regular trading session as the Dow jumped 618 points, or nearly 2%, following a week of sharp losses. The S&P 500 rose 1.9%, and the Nasdaq Composite gained 1.6%.

Oil prices were little changed on Monday, settling just slightly higher as worries over a possible recession vied with an outlook for higher fuel demand with the upcoming U.S. summer driving season and Shanghai’s plans to reopen after a two-month coronavirus lockdown.

U.S. West Texas Intermediate (WTI) crude settled up 1 cent, or 0.01%, at $110.29 a barrel, while Brent crude futures settled up 87 cents, or 0.7%, to at $113.42.

Gold prices jumped Monday as an easing dollar continued to support greenback-priced bullion, although higher U.S. Treasury yields capped gains.

Spot gold rose 0.36% to $1,852.4 per ounce. U.S. gold futures gained 0.52% to $1,851.7.

The pan-European Stoxx 600 ended up 1.3%, with major bourses and sectors ending the trading session in positive territory. Europe’s banking index and mining stocks led the gains, both up over 2.3%.

Siemens Gamesa shares jumped 6.2% toward the top of the European blue chip index after Siemens Energy offered to buy all outstanding shares of the renewables firm for 4.06 billion euros ($4.29 billion).

At the bottom of the index, Swiss pharmaceuticals company Vifor Pharma fell 8.3%.