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Macro Roundup (Aug 12)
Aug 12,2021 08:23CST
Source:SMM
The dollar fell on Wednesday after U.S. inflation data showed consumer price increases eased in July, taking some pressure off the Federal Reserve to begin scaling back the monthly bond purchases that are part of its toolbox to support the economic recovery.

SHANGHAI, Aug 12 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar fell on Wednesday after U.S. inflation data showed consumer price increases eased in July, taking some pressure off the Federal Reserve to begin scaling back the monthly bond purchases that are part of its toolbox to support the economic recovery.

The dollar index, which measures the greenback against a basket of other major currencies, was down 0.17% at 92.915 at 3:05 p.m. ET.

Earlier, the U.S. currency hit 93.195, its highest since April 1, and not far off of its 2021 high of 93.439, but it sold off after data showed the consumer price index rose 0.5% last month after climbing 0.9% in June. Excluding the volatile food and energy components, the CPI rose 0.3% after increasing 0.9% in June.

Economists polled by Reuters had forecast overall CPI would rise 0.5% and core CPI 0.4%.

On Wall Street, U.S. stock futures were mixed Wednesday night after the market shrugged off the July inflation report and the Dow Jones Industrial Average and S&P 500 hit records.

Dow futures rose 9 points, or 0.03%. S&P 500 futures and Nasdaq 100 futures fell 0.02% and 0.14%, respectively.

In the regular trading session, the Dow gained 0.6% to reach 35,484.97 and close at a new record. The S&P 500 rose 0.2% to an all-time high of 4,447.70. The Nasdaq Composite traded about 0.1% lower to 14,765.13.

Oil prices reversed losses to trade in the green on Wednesday, after the White House called on OPEC and its allies to increase oil production to support the global recovery from the pandemic.

Futures for West Texas Intermediate crude settled 1.36% higher at $69.25 per barrel. Earlier in the session the contract dipped more than 2% and traded as low as $66.67 per barrel. International benchmark Brent crude advanced 1.15% to $71.44 per barrel.

Oil prices moved lower Wednesday morning after CNBC reported that the White House said that OPEC+ needs to increase production.

Gold prices jumped on Wednesday after tame U.S. consumer price data eased fears that the Federal Reserve would taper its economic support sooner than expected.

Spot gold rose 1.4% to $1,752.46 per ounce by 2:07 p.m. ET. U.S. gold futures settled up 1.2% at $1,753.30.

A strong U.S. jobs report last week hammered bullion and kept it well below the key $1,800 mark as investors worried the Fed might taper soon.

But data on Wednesday showed the U.S. consumer price index in July rose in line with expectations, which eased those concerns and buoyed gold, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

European stocks closed higher Wednesday after fresh inflation data out of the U.S.

Investors also digested another batch of corporate earnings reports.

Thyssenkrupp, ABN AMRO and Deliveroo are among the companies reporting their results.

Macroeconomics

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