Macro Roundup (Nov 18)

SHANGHAI, Nov 18 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar eased off of a fresh 16-month high on Wednesday, while the euro remained on its back foot as investors weighed central bank tightening odds amid rising pricing pressures, with the U.S. Federal Reserve seen hiking rates as early as mid-2022.

The dollar index, which measures the currency against a basket of six rivals, drifted 0.034% lower to 95.91 after earlier touching 96.266 for the first time since mid-July 2020.

Versus the yen, the greenback hit a 4-1/2 year high and tested the $1.12 levels against the euro, helped by robust U.S. retail sales data and hawkish comments from Fed policymakers.

U.S. stock futures were flat in overnight trading after the major averages pulled back, albeit close to records, on Wednesday.

Dow futures fell just 20 points. S&P 500 futures gained 0.05% and Nasdaq 100 futures rose 0.14%.

Nvidia shares popped in extended trading after beating on the top and bottom lines of its quarterly results. Cisco Systems’ stock went the other direction due to weaker revenue guidance and a revenue miss.

On Wednesday, the Dow Jones Industrial Average lost 211 points, dragged down by a 4.7% loss in Visa shares. The S&P 500 dipped 0.26%. The Nasdaq Composite ticked 0.33% lower, despite most mega-cap technology companies closing in the green.

Oil prices fell on Wednesday after the International Energy Agency and the Organization of the Petroleum Exporting Countries warned of impending oversupply and as COVID-19 cases in Europe increased the downside risks to demand recovery.

The market pared some of those losses after an unexpected decline in U.S. crude oil stockpiles.

Brent crude futures dropped $2.6%, or $2.15, to settle at $80.28 a barrel. U.S. West Texas Intermediate (WTI) crude futures settled 3%, or $2.40, lower at $78.36 per barrel.

Gold prices bounced on Wednesday as inflation worries pushed investors to the safe-haven metal, unfazed by the dollar’s strength which was fuelled by bets for early interest hikes by the U.S. Federal Reserve.

Spot gold rose 0.9% to $1,866.83 per ounce by 12:46 p.m. ET (1746 GMT), having dropped in the previous two sessions after a seven-session rally.

U.S. gold futures gained 0.9% to $1,868.80.

European stocks closed slightly higher on Wednesday as investors reacted to inflation data and a fresh batch of corporate earnings.

The pan-European Stoxx 600 provisionally closed up by 0.2%, with mining stocks gaining 1.2% while travel and leisure stocks dropped 1.6%.