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Macro Roundup (Apr 20)

iconApr 20, 2021 09:19
Source:SMM
The dollar slumped to a six-week low against major peers on Monday, with Treasury yields near their lowest in five weeks, after the U.S. Federal Reserve reiterated its view that any spike in inflation was likely to be temporary.

SHANGHAI, Apr 20 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar slumped to a six-week low against major peers on Monday, with Treasury yields near their lowest in five weeks, after the U.S. Federal Reserve reiterated its view that any spike in inflation was likely to be temporary.

The dollar was also held down by improved risk sentiment amid a rally in global stocks to record highs.

The dollar index, which tracks it against six other currencies, fell to 91.079, not far from last week’s low of 91.484, a level not seen since March 18.

The greenback’s weakness was pronounced across the board on Monday, with the currency hitting multi-week lows against major peers in the G10 group of currencies: the Japanese yen, the Swiss franc, the Australian dollar and the New Zealand dollar, and the euro.

The 10-year Treasury yield sank as low as 1.5280% last week from 1.7760% at the end of last month, its highest in more than a year.

On Wall Street, U.S. stocks slipped from record levels to start the week on Monday as weakness in the technology sector weighed on the broader market.

The Dow Jones Industrial Average fell 123.04 points, or 0.4%, 34,077.63, sliding from a record high in the previous session. The S&P 500 fell 0.5% to 4,163.26 after closing at a fresh high on Friday. The tech-heavy Nasdaq Composite lost 1% to 13,914.77.

Earnings season kicked off last week when major U.S. banks reported quarterly results, and a host of companies are set to provide their updates this week. Ten Dow components will report, along with 72 S&P 500 companies. Coca-Cola beat first-quarter earnings expectations before the bell, while IBM and United Airlines are also among the firms set to report on Monday.

Oil prices edged higher on Monday, supported by a weaker U.S. dollar but concerns about the impact on demand from rising coronavirus cases in India and other countries capped gains.

Brent crude settled 0.42% higher at $67.05 per barrel, after rising 6% last week. West Texas Intermediate (WTI) U.S. oil advanced 0.4% to settle at $63.38 a barrel, having gained 6.4% last week.

Gold retreated from a more than seven-week peak on Monday as U.S. Treasury yields gained, weighing on non-yielding bullion’s appeal and countering support from a weaker dollar.

Spot gold was down 0.3% at $1,770.97 per ounce after touching $1,789.77, the highest since Feb. 25. U.S. gold futures settled down 0.5% at $1,770.60.

The euro zone current account surplus narrowed in February to 25.9 billion euros ($31.2 billion) from 34.7 billion in January as net exports declined, European Central Bank figures showed on Monday.

China is set to its latest one-year loan prime rate (LPR) as well as the five-year LPR at 9:30 a.m. HK/SIN.

Macroeconomics

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