SHANGHAI, Jan 13 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar fell to a two-month low against a basket of currencies on Wednesday after data, which showed an expected surge in U.S. consumer prices in December, fell short of offering any new impetus for the Federal Reserve’s policy normalization efforts.

The U.S. Dollar Currency Index, which tracks the greenback against six major currencies, was down 0.7% at 94.944, after slipping as low as 94.903, its lowest since Nov. 11.

U.S. consumer prices surged in December, with the annual increase in inflation the largest in nearly four decades, which could bolster expectations that the Federal Reserve will start raising interest rates as early as March.

The consumer price index increased 0.5% last month after advancing 0.8% in November, the Labor Department said on Wednesday. In the 12 months through December, the CPI surged 7.0%, the biggest year-on-year increase since June 1982. Economists polled by Reuters had forecast the CPI gaining 0.4% and shooting up 7.0% on a year-on-year basis.

U.S. stock futures were steady in overnight trading on Wednesday after the Nasdaq Composite rose for the third session despite a red-hot consumer price index report.

Dow futures rose just 20 points. S&P 500 futures gained 0.05% and Nasdaq 100 futures rose 0.04%.

Shares of homebuilder KB Home rallied more than 6% in after-hours trading after reporting better-than-expected earnings.

On Wednesday, the major averages rose despite the hefty print from the CPI inflation report. The Dow Jones Industrial Average jumped about 38 points and the S&P 500 added 0.3%. The Nasdaq Composite rose for the third straight day, climbing 0.2%.

The December consumer price index, a key inflation measure, increased 7%, according to the department’s Bureau of Labor Statistics. On a monthly basis, CPI increased 0.5%. Economists expected the consumer price index to rise 0.4% in December, and 7% on a year-over-year basis, according to Dow Jones.

The annual move was the fastest increase since June 1982.

Oil prices hit two-month highs on Wednesday on tight supply and easing concerns about the potential hit to demand from the Omicron coronavirus variant.

U.S. Federal Reserve Chairman Jerome Powell on Tuesday said that the economy of the United States, the world’s biggest oil consumer, should weather the current COVID-19 surge with only “short-lived” impact and is ready for the start of tighter monetary policy.

Brent crude futures were up $1.24, or 1.5%, at $84.96 per barrel. U.S. West Texas Intermediate (WTI) crude futures added 2%, or $1.62, to trade at $82.84 per barrel.

Gold firmed on Wednesday as data showing U.S. inflation was within expectations dented the dollar and prompted buying from investors who seemed to have priced in the Federal Reserve’s likely interest rate hike trajectory.

Spot gold was last up 0.2% at $1,825.83 per ounce, extending gains after rising the most since mid-December on Tuesday. U.S. gold futures settled up 0.5% at $1,827.3.

The pan-European Stoxx 600 closed 0.7% higher, with basic resources climbing 3.2% to lead gains while health care stocks dropped 0.7%.

French electrical parts supplier Rexel saw its shares climb 10.3% to lead the Stoxx 600 after hiking its full-year 2021 outlook.

At the bottom of the European blue chip index, Dutch health tech giant Philips plunged nearly 15.5% after issuing a fourth-quarter profit warning following hits from parts shortages, increased provisions for device recalls and higher supply costs.

Global markets had one eye on the latest reading of U.S. inflation on Wednesday to assess the economic picture in the world’s biggest economy and the Fed’s next move.