SHANGHAI, Feb 19 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.
The dollar lost ground on Thursday, ending a two-day winning streak as hopes for a speedy economic recovery from the global health crisis was dampened by disappointing labor market data, which put market participants in a risk-off mood.
An unexpected increase in weekly jobless claims dampened enthusiasm over otherwise upbeat data this week, the day after minutes from the U.S. Federal Reserve’s most recent monetary policy meeting showed the central bank was determined to continue supporting the economic recovery.
Initial jobless claims totaled 861,000 last week, according to Labor Department statistics published Thursday, the highest level in a month and significantly above the Dow Jones estimate of 773,000.
On Wall Street, the Dow Jones Industrial Average fell 119.68 points to close at 31,493.34. The S&P 500 declined 0.44% to finish its trading day at 3,913.97 while the Nasdaq Composite shed 0.72% to about 13,865.36.
Oil prices fell more than 1% on Thursday despite a sharp drop in U.S. crude inventories, as market participants took profits following days of buying spurred by a cold snap in the largest U.S. energy-producing state.
Brent crude fell 0.64% to settle at $63.93 per barrel. During the session it rose as high as $65.52, its highest since January 2020.
U.S. West Texas Intermediate (WTI) crude futures slid 1.01% to settle at $60.52 a barrel, after earlier reaching $62.26, the highest since January 2020.
Prices fell despite a sharp drop in U.S. oil inventories. Crude stockpiles fell by 7.3 million barrels in the week to Feb. 12, the Energy Information Administration (EIA) said on Thursday, compared with analysts’ expectations for a decrease of 2.4 million barrels.
Gold lingered near 11-week lows in choppy trading on Thursday as investor optimism for a global economic recovery raised U.S. Treasury yields and made the precious metal less attractive.
Spot gold inched 0.1% lower to $1,774.21 per ounce at 1:45 p.m. EST (1845 GMT), near its lowest since Nov. 30 at $1,767.20, hit earlier.
U.S. gold futures settled up 0.1% at $1,775.
The UK retail sales for January, Germany, Eurozone and US Markit manufacturing PMI for February and US pending home sales for January are set for release today.