Macro Roundup (Dec 23)

SHANGHAI, Dec 23 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The euro, Australian dollar and other currencies recovered against the U.S. dollar as traders turned more positive about the economic outlook on Wednesday, even as Omicron cases rocketed and investors braced for more volatility.

Risk appetite has improved since Monday, when markets were rattled by government restrictions relating to the spread of Omicron, and after U.S. Senator Joe Manchin said he would not support a new fiscal spending package.

Stock futures were slightly higher Wednesday evening following the second trading day in which equities climbed higher, as investors looked past earlier jitters about the spread of the omicron Covid variant.

Futures contracts tied to the Dow Jones Industrial Average added 0.06%. S&P 500 futures rose 0.1% and Nasdaq 100 futures gained 0.06%.

In regular trading, the Dow gained 0.7%, bringing its two-day rally to more than 800 points. The S&P 500 climbed 1% to 4,696.56 and now sits 1% away from its record. The Nasdaq Composite climbed 1.2%. All three averages are on track to end the week higher.

Oil prices rose on Wednesday on fears of tight supply and a drawdown in U.S. inventories, despite worries about the likely hit to economic activity from the spread of the Omicron coronavirus variant.
U.S. inventories fell more than expected, with crude stocks down by 4.7 million barrels, though that is in part due to year-end tax considerations that encourage companies not to store crude barrels.

Brent crude futures settled $1.31, or 1.77%, higher at $75.29 a barrel after gaining 3.4% in the last session.

U.S. West Texas Intermediate (WTI) crude futures advanced $1.64, or 2.3%, to settle at $72.76 per barrel.

Gold prices gained on Wednesday, aided by a retreat in the dollar and lingering fears that the Omicron coronavirus variant could throw a wrench in the global economic recovery.

Spot gold was last up 0.7% at $1,801.24 per ounce. U.S. gold futures settled up 0.8% at $1,802.20.

European markets were little changed on Wednesday as investors continue to monitor the threat posed by the omicron Covid-19 variant.

The pan-European Stoxx 600 traded up 0.7%, with technology stocks climbing 1.5% to lead gains while utilities slipped 0.1%.