Macro Roundup (Apr 8)

Published: Apr 08, 2021 09:08 (GMT+8)
The U.S. dollar edged higher against a basket of currencies in a choppy session on Wednesday, after minutes of the Federal Reserve’s March meeting showed the central bank committed to extending monetary policy support until an economic rebound in the United States was more secure.

SHANGHAI, Apr 8 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar edged higher against a basket of currencies in a choppy session on Wednesday, after minutes of the Federal Reserve’s March meeting showed the central bank committed to extending monetary policy support until an economic rebound in the United States was more secure.

Even as the U.S. economy gathered steam this year, Federal Reserve officials remained cautious about the continuing risks of the pandemic and committed to pouring on monetary policy support until a rebound was more secure, the minutes showed.

On Wall Street, futures contracts tied to the major U.S. stock indexes ticked higher at the start of the overnight session Wednesday evening, suggesting that Wall Street could extend gains that have propelled the S&P 500 to record levels this week.

Futures tied to the broad equity index rose about 0.25%, while Nasdaq 100 contracts added a similar 0.3%. Dow futures rose 37 points.

The moves in extended trading came after a late-day pop in the S&P 500 pushed it to 4,079.95, a new closing high. The Dow Jones Industrial Average rose 16 points, or 0.1%, during the regular session.

The tech-heavy Nasdaq Composite dipped 0.1% even as Big Tech stocks outperformed. Amazon, Apple and Alphabet all climbed more than 1%, while Facebook jumped 2.2%.

Global benchmark Brent crude inched higher on Wednesday on improving global economic outlook, but U.S. crude fell on rising gasoline inventories amid fears that new coronavirus outbreaks will weaken a global recovery in fuel demand.

Brent crude futures rose 42 cents, or 0.67%, to $63.16 a barrel while U.S. West Texas Intermediate crude settled 44 cents, or 0.7%, higher at $59.77 per barrel.

U.S. crude stocks fell 3.5 million barrels last week, but gasoline inventories jumped 4 million barrels, the Energy Information Administration said.

Gold prices fell on Wednesday a day after hitting a more than one-week peak, as strong economic data from the United States bolstered hopes of a swift recovery dimming the precious metal’s appeal.

Spot gold fell 0.4% to $1,737.01 per ounce by 3:14 p.m. EDT (1914 GMT). U.S. gold futures settled 0.1% lower at $1,741.6.

On the data front, IHS Markit’s final euro zone composite purchasing manager’s index (PMI) on Wednesday showed business activity in the bloc bouncing back in March despite a reintroduction of restrictions in several countries.

The composite PMI, which combines manufacturing and services and is seen as a useful gauge of economic health, came in at 53.2, up from 48.8 in February and above the 52.5 flash estimate.

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