Macro Roundup (Apr 14)

SHANGHAI, Apr 14 —This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar eased back from a nearly two-year high on Wednesday as the euro reversed course and turned positive ahead of a policy-setting meeting at the European Central Bank on Thursday.

Against a basket of six major currencies, the dollar fell to 99.888, after climbing early in the day to 100.52, the highest since May 2020. It has gained nearly 3% so far this month and was on track for its biggest monthly rise in nine months.

The dollar index fell 0.449%, with the euro up 0.54% to $1.0884.

Stock futures were little changed Wednesday evening as investors awaited quarterly earnings results from the biggest U.S. banks.

Dow Jones Industrial Average futures and S&P 500 futures inched higher by 0.01%. Nasdaq 100 futures added 0.09%.

In regular trading the Dow advanced about 344 points, or 1%. The S&P 500 and Nasdaq Composite advanced 1% and 2%, respectively, each snapping a three-day losing streak as investors shrugged off the latest CPI report, which showed inflation levels not seen since 1981.

Oil prices rose on Wednesday as investors grew more discouraged about peace talks between Russia and Ukraine, feeding worries about tight supplies even after U.S. crude stocks rose by more than 9 million barrels in the most recent week.

Brent crude advanced $4.14, or 3.96%, to $108.78. U.S. West Texas Intermediate (WTI) crude futures settled 3.63%, or $3.65, higher at $104.25 per barrel.

The gains came a day after both benchmarks climbed more than 6%.

Gold prices hit a one-month high on Wednesday as rising consumer prices boosted its appeal as an inflation hedge, with investors seeming to look past an impending interest rate hike by the Federal Reserve.

Spot gold rose 0.6% to $1,978.21 per ounce by 2:37 p.m. ET, after touching its highest since March 14 at $1,981.30. U.S. gold futures settled up 0.4% at $1,984.70.

Gold seems to be ignoring rising U.S. rates and is “singularly focused on inflation,” said Edward Meir, an analyst with ED&F Man Capital Markets.

The pan-European Stoxx 600 provisionally ended down 0.1%, with food and beverages stocks dipping 0.7% to lead losses.

In terms of individual share price movement, Britain’s largest retailer Tesco fell 2% after warning of a fall in full-year profit for 2022 caused by tough U.K. economic conditions.

U.K. inflation came in at an annual 7% in March, its highest since for 30 years, driven by soaring food and energy prices.

Consumer prices rose by 1.1% month-on-month, outstripping expectations for a 0.7% climb in a Reuters poll of economists, which had projected a 6.7% annual increase.