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Macro Roundup (Dec 25)

iconDec 25, 2020 09:00
Source:SMM
The U.S. dollar was mostly lower on Thursday, while sterling gained after Britain and the European Union struck a post-Brexit trade deal, boosting the market’s appetite for risk and raising hopes the United Kingdom can avoid a turbulent economic departure at the end of the year.

SHANGHAI, Dec 25 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar was mostly lower on Thursday, while sterling gained after Britain and the European Union struck a post-Brexit trade deal, boosting the market’s appetite for risk and raising hopes the United Kingdom can avoid a turbulent economic departure at the end of the year.

The two sides reached a “zero tariff-zero quota deal” which will help smooth the trade of goods across the channel. It will bring relief to exporters on both sides that had been facing higher tariffs and costs had a deal not been reached.

The trade agreement still has to be ratified by the U.K. and EU parliaments in the coming days, with a vote in Westminster due Wednesday.

On Wall Street, U.S. stocks posted slight gains in thin trading on Thursday to wrap up the holiday-shortened week.

The Dow Jones Industrial Average climbed 70.04 points, or 0.2%, to 30,199.87, while the S&P 500 gained 0.4%, or 13.05 points, to 3,703.06. The Nasdaq Composite rose 0.3%, or 33.62 points, to 12,804.73. Technology was the best-performing sector, rising 0.8%, while energy lagged.

House Republicans on Thursday blocked Democrats’ attempt to pass $2,000 direct payments as the fate of a coronavirus relief package passed by Congress hangs in the balance. The move came after President Donald Trump slammed the $900 billion bill, calling it an unsuitable “disgrace” because it calls for $600 rather than $2,000 checks.

Investors also closely monitored progress on the vaccine rollout. The CDC said just over one million shots had been administered as of Wednesday, roughly 19 million doses shy of earlier projections from public health officials for December.

Oil prices moved higher on Thursday as news that Britain and the European Union had signed a post-Brexit trade deal, as well as a draw in U.S. inventory sparked optimism.

U.S West Texas Intermediate (WTI) crude gained 11 cents, or 0.23%, to trade at $48.23 per barrel, while Brent crude futures advanced 10 cents, or 0.2%, to $51.30 per barrel. Volumes were light on the last trading day before the Christmas holiday.

Gold prices edged higher in holiday-thinned trade on Thursday, helped by a U.S. dollar that stayed lower after Britain clinched a trade deal with the European Union, although gains were capped by an uptick in risk appetite.

Spot gold rose 0.3% to $1,877.41 per ounce. U.S. gold futures were up 0.2% at $1,882.10.

Macroeconomics

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