Macro Roundup (Feb 7)

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

The dollar rose from two-week lows on Friday, after data showed the world’s largest economy created far more jobs than expected, raising the chances of a larger Federal Reserve interest rate hike in March.

The dollar index, a gauge of its value against six major currencies, rose 0.3% to 95.597 , after falling to a two-week low of 95.136 earlier amid a resurgent euro.

But the dollar was still down 1.7% on the week, on pace for its largest weekly percentage decline since November 2020.

The euro was still up on the day, rising 0.1% at $1.1455 . It was up 1.7% on the week, on track for its best weekly performance since late March 2020, supported after a hawkish turn by the European Central Bank (ECB) rippled through markets.

U.S. stock index futures were little changed during overnight trading Sunday after the S&P posted its best week of 2022, boosted by quarterly earnings reports and a better-than-expected January employment report.

Futures contracts tied to the Dow Jones Industrial Average advanced 0.08%. S&P 500 futures added 0.11%, while Nasdaq 100 futures were up 0.1%.

The S&P and Nasdaq Composite advanced on Friday for their fifth positive session in the last six, and the indices also posted their best week since December. The Dow slid 0.06% on Friday, but still managed to post a 1.05% gain for the week. The Russell 2,000 meantime posted its first positive week in five and best week of 2022.

Oil prices reached seven-year highs on Friday as geopolitical tensions and a winter storm in the United States fuelled concerns over supply disruptions.

Brent crude advanced 2.37% to end the day at $93.27 per barrel. U.S. West Texas Intermediate crude settled 2.26% higher at $92.31 per barrel.

Both benchmarks were on course for a seventh consecutive weekly gain.

Gold prices edged higher in choppy trade on Friday as growing inflation worries helped cushion pressure from a firmer dollar and higher U.S. Treasury yields after a surprisingly upbeat U.S. jobs data.

Spot gold was up 0.2% at $1,807.69 per ounce by 12:22 p.m. EST (1722 GMT), after hitting a one-week high earlier in the session. Bullion is up 0.9% so far this week.

U.S. gold futures rose 0.2% to $1,808.10.

Shares in Asia-Pacific declined in Monday morning trade, with mainland China markets set to reopen following the Lunar New Year holidays last week.

In Japan, the Nikkei 225 dipped 0.63% in early trade while the Topix index declined 0.39%. South Korea’s Kospi shed 0.8%.

Elsewhere, the S&P/ASX 200 in Australia shed 0.66%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.21% lower.