Macro Roundup (Feb 10)

SHANGHAI, Feb 10 (SMM) —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar weakened and euro edged higher on Wednesday amid ongoing repricing of positions after the European Central Bank’s hawkish shift last week, while the market awaited key data on U.S. consumer prices due on Thursday.

Bond yields retreated, in particular a jump in German two-year notes that had helped lift the euro last week to three-year highs. Benchmark 10-year U.S. Treasuries backed away from 27-month highs that spurred an upward dollar move.

ECB President Christine Lagarde calmed markets on Monday, backing away from her hawkish tone last week that changed rate hike expectations to this year from 2023 in the euro zone.

But the big shift in central bank policy expectations over the past week, in particular from the ECB, has dampened the dollar’s recent upside.

Tighter U.S. policy expectations are seen in other central banks, giving stability to the dollar as opposed to a more forceful directional move, said Alvise Marino, director of FX strategy at Credit Suisse.

U.S. stock futures were slightly higher on Wednesday night ahead of key inflation data due Thursday morning.

Dow Jones Industrial Average futures rose 60 points, or 0.1%. S&P 500 futures and Nasdaq 100 futures were flat.

Shares of Disney jumped 8% after hours after the company reported a quarterly earnings beat and a doubling of revenue from its parks, experiences and consumer products division. Uber gained 5% in extended trading after reporting a revenue beat and a bounce back from omicron-induced challenges.

In regular trading, Nasdaq Composite jumped for a second day as tech shares led the market higher and helped it recover some losses from the January sell-off, which was also led by tech names. The Nasdaq jumped 2.08% and the S&P 500 gained 1.5%, while the Dow Jones Industrial Average rose 305.28 points, or 0.86%.

Oil prices were stable around $90 a barrel on Wednesday but the prospect of increased supply from Iran and the United States kept pressure on the market.

Brent crude futures edged down 34 cents, or 0.4%, to $90.44 per barre.

U.S. West Texas Intermediate crude settled 30 cents, or 0.34%, higher at $89.66 per barrel.

The contracts slid about 2% on Tuesday as Washington resumed indirect talks with Iran to revive a nuclear deal.

An agreement could lift U.S. sanctions on Iranian oil and quickly add supply to the market, although a number of vital issues still need to be ironed out.

Gold eked out gains on Wednesday, helped by a weaker dollar and a retreat in U.S. Treasury yields, although prices moved in a tight range as investors refrained from making large bets ahead of U.S. inflation data.

Spot gold rose 0.5% to $1,834.30 per ounce. U.S. gold futures were 0.4% higher at $1,835.10.

Benchmark 10-year U.S. Treasury yields were off their November 2019 highs, while the dollar eased, making greenback-priced bullion cheaper for other currency-holders.

The pan-European Stoxx 600 provisionally closed up by 1.7%, with autos surging 4% to lead the gains as all sectors and major bourses ended in positive territory.

Earnings were a key driver of individual share price action in Europe on Wednesday. Danish mineral wool manufacturer Rockwool International soared nearly 20% to lead the Stoxx 600 after its fourth-quarter report, while Dutch payment company Adyen jumped 11.5% after strong second-half results.