SHANGHAI, Mar 24 - This is a roundup of global macroeconomic news last night and what is expected today.
The U.S. dollar pared earlier losses on Thursday after the U.S. Federal Reserve sounded close to calling time on interest rate hikes, while the Swiss National Bank and Bank of England pushed ahead with further rate increases.
The Fed raised its benchmark funds rate 25 basis points on Wednesday, but dropped language about “ongoing increases” being needed in favour of “some additional” rises.
The Fed’s hike was notable given that financial markets have been roiled by wavering confidence in banks globally following a run on Silicon Valley Bank two weeks ago and the sudden demise of Credit Suisse.
The dollar index, which measures the currency against six major peers, was last up 0.24% at 102.60, set for its first winning day after five straight days of losses.
Futures tied to the Dow Jones Industrial Average were near flat Thursday night as investors’ attention shifted from this week’s Federal Reserve meeting back to the U.S. banking system.
Futures tied to the Dow added 16 points, trading near the flatline. S&P 500 futures were also flat, while Nasdaq-100 futures shed 0.1%.
Investors continued responding Thursday to the quarter percentage point interest rate hike announced by the Fed on Wednesday. The central bank also signalled that the interest rate hikes, meant to cool inflation, could be coming the end.
Investors will be watching for economic data on durable goods, manufacturing and services due Friday morning.
Oil prices settled 1% lower on Thursday, reversing early gains after U.S. Energy Secretary Jennifer Granholm told lawmakers that refilling the country’s Strategic Petroleum Reserve (SPR) may take several years.
Brent crude futures fell by 78 cents, or 1%, to settle at $75.91 a barrel. U.S. West Texas Intermediate crude futures slid by 94 cents, or 1.3%, to end the session at $69.96 a barrel.
Oil benchmarks had pushed about 1% higher before Granholm’s comments, underpinned by a lower dollar and higher gasoline prices.
Gold prices extended gains to a second straight session on Thursday, boosted by a slide in the U.S. dollar and Treasury yields after the Federal Reserve signaled an end to its monetary tightening cycle might be on the cards.
Spot gold last rose 1.18% to $1,992.81 per ounce, while U.S. gold futures jumped 2.4% to settle at $1,995.90.
European stock markets closed lower Thursday as investors digested the latest interest rate hikes by the U.S. Federal Reserve and the Bank of England.
The pan-European Stoxx 600 closed down 0.2%, having slightly trimmed losses after the U.K. central bank announced its widely-expected 25 basis point increase. The blue chip index had been trading lower through the morning.
