SHANGHAI, Jan 20 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.
The dollar dropped for a second straight session on Tuesday, with broader risk appetite turning more positive, as investors cheered comments from U.S. Treasury Secretary nominee Janet Yellen on the need for major fiscal stimulus.
The dollar’s fall came after a 0.6% rise so far in 2021, which caught off guard many investors who had bet on a further decline following its weakness in 2020.
The greenback has been helped in January by rising U.S. Treasury yields and some investor caution about the strength of the global economic recovery from the coronavirus pandemic. But most analysts are sticking with their calls for a weaker dollar from here.
Yellen, appearing before the Senate Finance Committee on Tuesday, urged lawmakers to “act big” on the next coronavirus relief package, adding that the benefits outweigh the costs of a higher debt burden.
On Wall Street, stock futures inched higher in overnight trading on Tuesday as investors awaited President-elect Joe Biden’s inauguration.
Futures on the Dow Jones Industrial Average rose 75 points. S&P 500 futures gained 0.3% and Nasdaq 100 futures climbed 0.5%.
Netflix soared more than 10% in extended trading after the company reported strong subscriber growth and said it’s considering share buybacks. Netflix handily beat estimates for global paid net subscriber additions, reporting 8.5 million versus the 6.47 million analysts anticipated.
Biden will succeed President Donald Trump as the 46th president of the United States shortly after noon ET. His inauguration speech will focus on the need to bring the country together on the heels of a violent riot on Capitol Hill and amid extreme partisanship in Congress.
Oil prices climbed with U.S. stock markets on Tuesday ahead of Joe Biden’s inauguration as U.S. president on optimism that more government stimulus will eventually lift global economic growth.
Brent futures for March delivery rose $1.15, or 2.1%, to settle at $55.90 per barrel, while U.S. West Texas Intermediate (WTI) crude settled 62 cents, or 1.18%, higher at $52.98 per barrel.
Wall Street’s main indexes rose after upbeat earnings from big U.S. banks and comments from U.S. Treasury Secretary nominee Janet Yellen ahead of Biden’s inauguration on Wednesday.
Yellen urged lawmakers to “act big” on the next coronavirus relief package, adding that the benefits outweigh the costs of a higher debt burden.
Gold held on to gains on Tuesday as the dollar remained under pressure, with prospects for more stimulus buoying bullion’s appeal as an inflation hedge.
Spot gold was up 0.2% at $1,840.38 per ounce, recovering from its lowest since Dec. 2 at $1,809.90 hit on Monday. U.S. gold futures settled up 0.6% to $1,840.20.
The value of the U.S. dollar should be determined by markets, Janet Yellen told Senate lawmakers at her confirmation hearing on Tuesday. Yellen also reaffirmed her commitment to relief measures and underlined the depth of the economic crisis.
Gold is considered a hedge against inflation and currency debasement that can result from widespread stimulus.
Key economic data slated for release today include Britain seasonally-unadjusted PPI annual rate in December, Euro Zone seasonally-unadjusted PPI annual rate in December and Bank of Canada Interest Rate in January.