Macro Roundup (Oct 14)

SHANGHAI, Oct 14 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar eased back from a one-year high on Wednesday as longer-dated Treasury yields fell after U.S. inflation data that showed prices rose solidly in September, advancing expectations for Federal Reserve tightening.

The consumer price index rose 0.4% last month, versus a 0.3% rise anticipated by economists polled by Reuters. In the 12 months through September, the CPI increased 5.4%, up from a 5.3% year-on-year advance in August.

Excluding the volatile food and energy components, the so-called core CPI climbed 0.2% last month, up from 0.1% in August.

Yields on shorter-term Treasuries, which typically move in tandem with interest rate expectations, increased after the report, while longer-dated yields dipped.

The gap between the two- and 10-year Treasury notes , seen as an indicator of economic expectations, closed to its narrowest in two weeks, after having widened to a 3-1/2 month high on Friday.

US stock futures were little changed Wednesday night after the S&P 500 snapped a three-day losing streak as companies kicked off the quarterly earnings season.

Dow Jones Industrial Average futures rose 46 points, or 0.13%. S&P 500 and Nasdaq 100 futures inched up 0.18% and 0.24%, respectively.

The major averages were little changed by the end of the regular session. The Dow was flat at 34,377.81, the S&P 500 gained 0.3% and the Nasdaq Composite ticked up 0.7%.

Oil prices were flat on Wednesday as surging fuel costs for power generation offset expectations for slower crude demand growth as major economies struggle with inflation and supply chain issues.

Brent futures settled 24 cents, or 0.3%, lower at $83.18 per barrel. U.S. West Texas Intermediate (WTI) crude dipped 20 cents, or 0.25%, to end the day at $80.44 per barrel.

On Tuesday, WTI closed at its highest since October 2014 for a third day in a row.

Gold rose more than 1% on Wednesday on a retreat in the dollar and U.S. Treasury yields, with investors’ focus on minutes from the Federal Reserve’s latest policy meeting for confirmation of its tapering strategy.

Spot gold was up 1.6% at a near four-week high of $1,788.01 per ounce by 10:21 a.m. EDT (1421 GMT). U.S. gold futures jumped 1.6% to $1,786.60.

Other precious metals followed along, with spot silver rising 2.3% to $23.05 per ounce, platinum gaining 2% to $1,027.09 and palladium adding 4.7% to $2,142.30.

The pan-European Stoxx 600 closed up 0.7%, having started the session in the red. Tech stocks bounced 2.6% to lead gains, while banks fell 1.6%.

Traders are keeping a wary eye on uncertainties surrounding inflation, economic growth and surging energy prices.

French energy company Spie climbed 8.5% after withdrawing from a race to buy utility company Engie’s services unit.