Macro Roundup (Feb 8)

SHANGHAI, Feb 8 (SMM) —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar edged higher and the euro eased on Monday after European Central Bank President Christine Lagarde calmed market expectations of a quick hike in interest rates that bumped regional bond yields in Europe to multi-year highs.

There is no need for big monetary policy tightening in the euro zone as inflation is set to decline and could stabilize around the ECB’s target of 2%, Lagarde told a European Parliament hearing.

The ECB opened the door last week to a rate hike later in 2022 as inflation risks rose, while data showing an unexpected jump in U.S. jobs created in January also raised speculation of a faster timetable for Federal Reserve rate hikes.

The new expectations for both the Fed and ECB has pit the dollar and euro against each other as to which will gain an upper hand. U.S. consumer price data to be released on Thursday is poised to be a key data point determinant.

U.S. stock index futures crept higher during overnight trading Monday, after the major averages moved between gains and losses during regular trading as the market awaits key inflation data later this week.

Futures contracts tied to the Dow Jones Industrial Average added 0.1%. S&P 500 futures gained 0.16%, while Nasdaq 100 futures were up 0.19%.

During regular trading the S&P 500 slid 0.37%, while the Nasdaq Composite shed 0.58%. Both traded higher earlier in the day, before reversing course during the final hour of trading. Each index managed to close above its worst level of the session, however.

The Dow Jones Industrial finished Monday’s trading session just 1 point higher. At one point the 30-stock benchmark had added 235 points. At the lows of the day, the Dow declined by about 95 points.

Oil prices fell on Monday as signs of a progress in the U.S.-Iran nuclear talks that could lead to removal of U.S. sanctions on Iranian oil sales offset concerns about the tight supplies.

Brent crude declined 58 cents, or 0.62%, to end the day at $92.69 per barrel, after earlier touching $94.00, its highest level since October 2014.

U.S. West Texas Intermediate crude fell 99 cents, or 1.07%, to settle at $91.32 per barrel.

Gold prices climbed to a more than one-week high on Monday, supported by inflation worries and lingering geopolitical risks, as markets awaited key U.S. inflation data for cues on the Federal Reserve’s interest rate hike trajectory.

Spot gold was up 0.4% at $1,813.93 per ounce, after hitting its highest level since Jan. 27 at $1,816.86 earlier in the session. U.S. gold futures gained 0.4% to $1,814.70.

The pan-European Stoxx 600 closed up by 0.7%, with most sectors and major bourses in positive territory. Travel and leisure stocks climbed 3.1% to lead the gains.

In terms of individual share price action, Swedish health care company AddLife climbed more than 7% to lead the Stoxx 600 after repurchasing 181,000 of its own shares.