Macro Roundup (Jan 11)

SHANGHAI, Jan 11 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar ticked up on Monday amid rising bets U.S. inflation will bolster the case for higher interest rates while the European Central Bank’s dovish stance on rising prices weighed on the euro.

The dollar had met with selling late last week after a weaker-than-expected headline U.S. job-creation figure squeezed traders out of long dollar positions.

But analysts said better-than-expected unemployment numbers and U.S. inflation figures expected to show headline CPI at a red-hot 7% year-on-year on Wednesday, make a good case for interest rates to rise sooner rather than later.

U.S. stocks were flat on Monday evening after the major averages extended declines, until the Nasdaq rallied to snap a four-day losing streak.

Futures tied to the Dow Jones Industrial Average fell 17 points, or 0.05%. S&P 500 futures edged 0.01% lower, and Nasdaq 100 futures were slightly higher.

In regular trading, the Nasdaq turned slightly green into the close after a day of continued declines from the previous week’s sell-off, sparked by a rate in bond yields and worries about upcoming actions by the Federal Reserve. It closed 0.05% higher and erasing a 2.7% loss. Meanwhile, the Dow lost 162 points, or 0.4%, while the S&P 500 slid 0.1%.

Oil prices fell Monday as concerns about demand fears stoked by the rapid global rise in Omicron coronavirus infections overtook concerns about oil supply from Kazakhstan.

Brent crude declined 88 cents, or 1.08%, to end the day at $80.87 per barrel. U.S. West Texas Intermediate (WTI) crude settled 67 cents, or 0.85%, lower at $78.23 per barrel.

In early trade, both contracts rose by about 50 cents.

Gold prices edged higher on Monday despite U.S. 10-year Treasury yields hitting a two-year high, as traders hedged their positions against inflation and ongoing geopolitical risks.

Spot gold was up 0.3% at $1,800.76 per ounce by 1148 GMT, recovering slightly from Friday when it hit its lowest since Dec. 16. U.S. gold futures rose 0.2% to $1,800.30.

The pan-European Stoxx 600 provisionally closed down by 1.3%, having started the trading session up by 0.3%. Tech stocks fell 3.2% to lead losses while banks, which would benefit from higher interest rates, rose 0.4%.

Euro zone inflation hit a new record high last month, coming in at 5% compared with December 2020.