Macro Roundup (Dec 2)

SHANGHAI, Dec 2 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar steadied on Wednesday and risk appetite recovered somewhat, but euro-dollar volatility remained elevated as investors weighed up hawkish comments from the Federal Reserve and risks relating to the Omicron variant.

The dollar rose on Tuesday after U.S. Fed Chair Jerome Powell said that the risk of inflation had increased and signaled the central bank may accelerate its bond-buying taper at its meeting later this month.

At 1147 GMT, the dollar index was little changed overall on the day at 95.940. In November, it had its strongest month since June.

U.S. stock index futures inched higher during overnight trading on Wednesday, after the CDC confirmed the first known case of the omicron variant in the U.S., sending stocks tumbling.

Futures contracts tied to the Dow Jones Industrial Average gained 72 points. S&P 500 futures advanced 0.2%, while Nasdaq 100 futures added 0.25%.

During regular trading the Dow fell about 460 points, or 1.34%. Earlier in the session the 30-stock benchmark had advanced 521 points, or 1.5%. The S&P dipped 1.18%, giving back an earlier gain of about 1.9%. The Nasdaq Composite slid 1.83%, after earlier trading 1.8% higher.

Oil prices fell into the red in late afternoon trading on Wednesday after the CDC confirmed the firm omicron case in the U.S.

Brent crude futures for February slid 0.2% to $69.08 per barrel.

U.S. West Texas Intermediate (WTI) crude futures fell 0.4% to $65.90 per barrel. Both contracts retraced some of their gains after an OPEC+ document showed the group forecasting a bigger oil surplus in the new year than previously thought.

Gold rose on Wednesday, tracking a retreat in the dollar as investors used a pullback in the previous session to buy bullion as a hedge against wider market volatility amid concerns over the impact of the Omicron coronavirus variant.

Spot gold was up 0.4% to $1,780.05 per ounce by 2:33 p.m. ET (1933 GMT), after falling as much as 0.9% on Tuesday after Federal Reserve Chair Jerome Powell’s remarks the central bank will discuss whether to end bond purchases earlier than expected in its December meeting.

European stocks closed higher Wednesday, capping off the latest trading day of a whirlwind week impacted by fears over the new omicron Covid variant.

The pan-European Stoxx 600 provisionally closed up by 1.8%, with autos and travel and leisure stocks jumping more than 3% to lead gains as all sectors and major bourses entered positive territory.