Macro Roundup (Apr 1)

SHANGHAI, Apr 1 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar edged higher on Thursday as a lack of progress in peace talks between Russia and Ukraine boosted demand for the safe-haven currency and as the energy shock that has resulted from the war weighed on Europe’s economy.

Hopes from earlier this week that peace talks would lead to a ceasefire in Ukraine five weeks after Russia’s invasion have dwindled, with Ukrainian forces preparing for new Russian attacks in the southeast of the country. Peace talks were set to resume on Friday.

The dollar index, which weighs the greenback against a basket of six global peers, was up 0.445% at 98.264 at 10:40 a.m. ET.

Stock futures rose early Thursday as investors assessed a new quarter of trading and a troublesome bond market recession indicator.

Investors were also awaiting the official jobs report for March, which the Labor Department will release at 8:30 a.m. ET on Friday.

Dow futures gained 90 points, or 0.3%. S&P 500 futures added 0.2% and Nasdaq 100 futures rose 0.3% to kick off the first trading session of the second quarter.

The Dow Jones Industrial Average slumped on Thursday to close out the first negative quarter for stocks in two years, with losses accelerating in the final hour of trading. The Dow dropped 550.46 points, or 1.56%, to 34,678.35. The S&P 500 slid 1.57% to 4,530.41, and the Nasdaq Composite was down 1.54% to 14,220.52.

All three major averages posted their worst quarter since March 2020. The Dow and S&P 500 declined 4.6% and 4.9% respectively during the period, and the Nasdaq dropped more than 9%. Stocks did stage a late-quarter comeback in March however after sharp declines from rising interest rates and inflation marked the first part of the year.

Oil prices were lower on Thursday as the White House announced that it will release 1 million barrels per day of oil for the next six months from the Strategic Petroleum Reserve — in an effort to calm spiking oil and gas prices.

International benchmark Brent crude ended the day at $107.91, for a loss of 4.88%. U.S. crude futures for May delivery settled 6.99% lower at $100.28 per barrel.

Gold on Thursday was headed for its best quarter since the coronavirus pandemic-led surge in mid-2020 as concerns over soaring consumer prices and the Ukraine crisis bolstered bullion’s safe-haven appeal.

Spot gold was up 0.4% at $1,941.11 per ounce by 10:45 a.m. ET. For the month, bullion was up nearly 1.8%.

U.S. gold futures rose 0.3% to $1,945.40.

The pan-European Stoxx 600 closed lower by 0.7% on Thursday, but eked out a monthly gain of 0.8% for March. The European blue-chip index ended the first quarter of 2022 more than 6.3% lower, its worst three-month period in two years.

Geopolitical uncertainty and concerns over rising inflation have dominated market sentiment in March. Both European and U.S. markets traded lower Wednesday following disappointment after talks between Russia and Ukraine, aimed at finding a solution to the conflict, again appeared to make little progress.