Macro Roundup (Dec 7)

SHANGHAI, Dec 7 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar ticked higher on Monday as Treasury yields rose off last week’s 2-1/2-month lows following news that initial observations suggested those suffering from the Omicron COVID-19 strain only had mild symptoms.

The Omicron news from South Africa helped reverse some of the moves from Friday, when Wall Street had sold off heavily.

That selloff had taken 10-year Treasury yields below 1.4% for the first time since late-September and boosted the safe-haven yen and Swiss franc. The dollar had tumbled as much as 0.4% lower against the Japanese currency. .

Friday’s greenback losses also followed a below-forecast jobs report, though the data did little to shake market expectations the Federal Reserve will accelerate the pace of unwinding stimulus and raise interest rates starting next year.

The dollar index inched 0.10% higher at 96.29, within range of November’s 16-month peak of 96.938. It was also 0.2% higher against the yen at 113.05 yen and rebounded 0.4% to the franc.

Stock futures were flat in overnight trading on Monday after a rebound from a rollercoaster week as investors looked past the potential impact from the new omicron coronavirus variant.

Futures on the Dow Jones Industrial Average rose just 15 points. S&P 500 futures and Nasdaq 100 futures were both little changed.

Oil prices climbed by nearly 5% on Monday on hopes the Omicron coronavirus variant would have a less damaging economic impact if its symptoms proved mostly mild and as some OPEC member countries signaled confidence in the market.

Reports in South Africa said Omicron cases there had only shown mild symptoms and the top U.S. infectious disease official, Anthony Fauci, told CNN “it does not look like there’s a great degree of severity” so far.

The White House said on Monday that the U.S. ban on foreign nationals entering the country from eight southern African countries is something President Joe Biden’s public health advisers reconsider daily.

Brent crude rose $3.20, or 4.6%, to settle at $73.08 a barrel. U.S. West Texas Intermediate crude rose $3.23, or 4.9%, to settle at $69.49 a barrel.

Gold eased on Monday as sentiment for riskier assets improved and the dollar advanced, with moves limited by overall uncertainty over the Omicron coronavirus variant ahead of this week’s U.S. inflation numbers.

Spot gold fell 0.2% to $1,780.95 an ounce by 1113 GMT, while U.S. gold futures dropped 0.1% to $1,781.90.

European stocks closed higher on Monday as investors closely monitored developments around the omicron Covid variant and bitcoin volatility.

The pan-European Stoxx 600 provisionally ended up around 1.4%, with travel and leisure stocks jumping over 4.1% to lead gains. Almost all sectors and major bourses closed the session in positive territory.