Macro Roundup (Nov 12)

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

The dollar rose on Thursday, hitting a 16-month high a day after the strongest U.S. inflation reading in more than three decades, while equities gained on expectations higher consumer prices will help corporate growth.

The UK’s blue-chip stock index hit 20-month highs as China-exposed miners listed in London bounced on relief that property developer China Evergrande averted a default.

European shares rose after Goldman Sachs said regional earnings have been resilient to supply chain snags, a message that echoed on Wall Street as investors view the impact on rising prices as temporary but positive for corporate profits.

Oil prices were steady to a few cents lower on Thursday, as the market grappled with a stronger U.S. dollar along with concern over increasing U.S. inflation, and after OPEC cut its 2021 oil demand forecast due to high prices.

Brent crude futures were down 8 cents to $82.56 a barrel after falling earlier to $81.66. U.S. West Texas Intermediate (WTI) futures were down 2 cents to $81.32 after hitting a session low of $80.20.

On Wednesday, U.S. data showed consumer price inflation rose in October at an annual rate of by 6.2%, the fastest rate in 30 years, driven largely by steeper energy prices. Expectations that the data would prompt U.S. rate hikes pushed the dollar higher and sent Brent and WTI crude down by 2.5% and 3.3%, respectively.

Gold prices neared a five-month high touched in the previous session, after strong U.S. consumer price data prompted a rush into the precious metal seen as a hedge against inflation.

Spot gold was up 0.6% at $1,861.39 per ounce. U.S. gold futures for December delivery settled 0.8% higher at $1,863.90 per ounce.

Gold rose as much as 2% on Wednesday and hit its highest level since mid-June, after data showed U.S. consumer prices rose at their fastest pace in 31 years in October, underscoring signs inflation could stay uncomfortably high well into 2022.

The pan-European Stoxx 600 closed up by 0.3% provisionally, boosted by a 3.7% surge in mining shares. At the opposite end, Europe’s basket of travel and leisure stocks dipped around 1.1%.

Traders began the day digesting the latest U.S. inflation data released on Wednesday, which showed that October’s consumer price reading jumped at the hottest annual pace in more than three decades.

The consumer price index jumped 6.2% from a year ago, well above the 5.9% estimate from economists polled by Dow Jones. On a monthly basis, the CPI increased 0.9% against the 0.6% estimate.