Macro Roundup (Jun 4)

SHANGHAI, Jun 4 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar rose to a three-week high on Thursday, bolstered by stronger-than-expected U.S. jobs data that suggested an improving labor market and reinforced signs that the world’s largest economy was on its way to recovery from the COVID-19 pandemic.

The greenback, which was already on solid footing ahead of reports on jobless claims and private payrolls, climbed to three-week peaks against the euro and two-month highs versus the yen.

U.S. private payrolls increased by 978,000 jobs in May, the ADP National Employment Report showed, the biggest increase since June 2020. Economists polled by Reuters had forecast private payrolls would increase by 650,000 jobs.

At the same time, U.S. initial jobless claims dropped below 400,000 last week for the first time since the pandemic started more than a year ago.

On Wall Street, US stock futures were little changed in overnight trading Thursday ahead of the May jobs report.

Dow Jones Industrial Average futures rose just 9 points. S&P 500 futures lost 0.01% and Nasdaq 100 futures ticked 0.03% lower.

Investors have been waiting for the Labor Department’s release of May’s nonfarm payrolls report that comes out Friday morning, with stocks holding near record highs.

Economists expect the report to show 671,000 jobs were added in May, according to economists polled by Dow Jones. The economy added 266,000 jobs in April.

Oil prices were little changed on Thursday, following two straight days of gains that took oil futures to highs not seen in a year, after weekly U.S. crude stocks fell sharply while fuel inventories rose more than expected.

Brent futures for August delivery fell 23 cents to $71.12 a barrel, a 0.3% loss. U.S. crude fell 14 cents to $68.69 per barrel.

Brent crude touched its highest since September 2019 at $71.99 earlier in the session. WTI prices rose as high as $69.40, strongest since October 2018, after gaining 1.5% in the previous session.

U.S. crude inventories fell by 5.1 million barrels last week, compared with expectations for a decrease of 2.4 million barrels, while gasoline stocks grew by 1.5 million barrels and distillate stockpiles jumped by 3.7 million barrels.

Gold slid as much as 2.3% on Thursday as better-than-expected US employment and service sector data propelled the dollar higher and boosted expectations that the strong economic readings may reignite taper talk from the Federal Reserve.

Bullion's retreat also spilled into other precious metals, with silver slipping as much as 4.3% and platinum shedding 3.7%.

Spot gold was down 1.9% at $1,871.91 per ounce by 1:43 p.m. EDT (1743 GMT), after falling to its lowest level since May 20 at $1,864.39. U.S. gold futures settled down 1.9% at $1,873.30.

The pan-European Stoxx 600 index ended the session just below the flatline. Basic resources fell 1.9% to lead losses, with miners Anglo American and Antofagasta dropping 2.9% and 3.6%, respectively.

The index was unmoved by the latest euro zone business activity data which rose in May as coronavirus restrictions eased.

Investors will monitor Hong Kong-listed shares of Alibaba after Ant Group received approval to operate a consumer finance company. That marked a major positive development for Ant in the forced restructuring of its business months after its highly anticipated debut was abruptly shelved.