Macro Roundup (Apr 23)

SHANGHAI, Apr 23 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

Overnight on Wall Street, the Dow Jones Industrial Average fell 321.41 points to close at 33,815.90. The S&P 500 declined 0.92% to finish its trading day at 4,134.98 while the Nasdaq Composite closed 0.94% lower at 13,818.41.

The losses stateside came after reports from multiple outlets, including Bloomberg News and The New York Times, that U.S. President Joe Biden is seeking an increase in the tax on capital gains to 39.6% from 20% for Americans earnings more than $1 million.

U.S. Treasury yields held steady on Thursday as investors digested the release of weekly jobless claims data.

The yield on the benchmark 10-year Treasury note was little changed at 1.58%. The yield on the 30-year Treasury bond was also flat at 2.26%. Yields move inversely to prices.

Oil prices were little changed on Thursday as concerns over lower crude production in Libya offset expectations that rising coronavirus cases in India and Japan would cause energy demand to decline.

Brent futures settled 0.12% higher at $65.40 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.13% to settle at $61.43 per barrel.

India, the world’s third-largest oil user, on Thursday reported the world’s highest daily increase to date with 314,835 new coronavirus cases.

Indian Oil Corp Ltd’s (IOC) refineries are operating at about 95% of their capacity, down from 100% at the same time last month, two sources familiar with the matter told Reuters.

Japan, the world’s No.4 oil importer, is expected to announce a third wave of lockdowns affecting Tokyo and three western prefectures, media reported.

Gold fell on Thursday, retreating from a two-month high as an upbeat U.S. jobs report hinting at steady economic recovery hurt the metal’s appeal, while palladium held near an all-time high.

Spot gold fell 0.4% to $1,786.39 per ounce, after hitting its highest since Feb. 25 at $1,797.67. U.S. gold futures were down 0.4% at $1,786.20.

The European Central Bank kept its monetary policy unchanged on Thursday as traders looked for clues on when its massive monetary stimulus might start to be wound down.

Economic data released Thursday also gave investors a snapshot of the ongoing labor market recovery in the U.S. Initial jobless claims for last week came in at 547,000, which was below the Dow Jones estimate for 603,000 and a new low for the Covid-19 pandemic era.