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Macro Roundup (Jan 28)

iconJan 28, 2022 09:48
Source:SMM
This is a roundup of global macroeconomic news last night and what is expected today.

SHANGHAI, Jan 28 (SMM) —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar soared to highs last seen in July 2020 against other major currencies on Thursday, a day after the Federal Reserve said it could deliver faster and larger interest rate hikes in the months ahead.

With the Fed flagging that it was ready to start lifting rates in March to contain surging inflation, money markets moved to price in as many as five quarter-point increases by year-end.

The Fed’s hawkish tone on Wednesday brought dollar bulls out in force. The dollar index, which measures the greenback’s value against other major currencies, rose to 97.299, the highest since July 2020.

The 0.8% jump was the biggest single-day gain in more than two months.

The euro slumped 0.95% to $1.1133, its lowest since June 2020. The greenback also hit its highest levels in more than a year against the New Zealand dollar, a seven-week peak against Australia’s currency and rose broadly against emerging market currencies.

Stock futures rose in overnight trading Thursday, boosted by a jump in Apple shares, as Wall Street looks to wrap up a roller-coaster week on a high note.

Futures on the Dow Jones Industrial Average gained about 100 points. S&P 500 futures climbed 0.3% and Nasdaq 100 futures jumped 0.7%.

Oil prices fell on Thursday after Brent crude hit a seven-year high above $90 a barrel, as the market balanced concerns about tight worldwide supply with expectations the U.S. Federal Reserve will soon tighten monetary policy.

Global benchmark Brent fell 62 cents to settle at $89.34 a barrel, while U.S. crude closed 74 cents lower at $86.61 a barrel in a volatile session with both contracts see-sawing between positive and negative territory.

Prices had surged on Wednesday, with Brent climbing above $90 a barrel for the first time in seven years amid tensions between Russia and the West. Threats to the United Arab Emirates from Yemen’s Houthi movement had added to oil market jitters.

Gold prices slid over 1% to more than a two-week low on Thursday, as the dollar rallied after robust U.S. economic data strengthened the case for an interest rate hike by the Federal Reserve in March.

Spot gold was down 1.3% at $1,794.30 an ounce by 14:04 EST, after hitting a low of $1,790.20. U.S. gold futures fell 2% to $1,793.10.

European stocks closed higher after a choppy trading session Thursday, as global markets reacted to the latest policy decision from the U.S. Federal Reserve.

The pan-European Stoxx 600 closed up by 0.7%, clawing back from earlier losses as U.S. GDP data came in better than expected. Utilities were the top performers, climbing 2%, while travel shares sank 1.6%.
 

macroeconomy

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