Macro Roundup (Apr 14)

SHANGHAI, Apr 15 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar gained on the euro Thursday, as comments from European Central Bank chief Christine Lagarde were taken as a sign that the bank was in no rush to raise interest rares.

The euro was down 0.53% at $1.0827, extending falls made after the release of the ECB statement, while the dollar index, which measures the dollar against six peers, rose 0.45% to 100.33.

The British pound rose to $1.3131 in early trade, its highest in a week against the dollar, after jumping 0.9% on Wednesday, its biggest daily percentage gain since June 2021, before settling down 0.32%.

Meanwhile, the benchmark 10-year Treasury yield rose 15 basis points to 2.827%. It rose steadily earlier this month — driven by expectations of more aggressive Federal Reserve tightening to combat inflation — and reached as high as 2.836% on Tuesday, ahead of U.S. inflation figures.

The S&P 500 and Nasdaq Composite fell Thursday, capping a losing week as investors digested mixed earnings results from major banks and rising inflation.

The broad-market index fell 1.21% to 4,392.59, while the Nasdaq Composite lost 2.14% to 13,351.08. Meanwhile, the Dow Jones Industrial Average lost 113.36 points, or 0.33%, to 34,451.23.

The S&P 500 is down 2.13% for the four-day holiday week. The Nasdaq Composite is off 2.63%, and the Dow is down 0.78% for the week. Trading is closed at the NYSE on Friday.

Oil prices settled higher on Thursday after an early decline as investors covered short positions ahead of the long weekend and on news that the European Union might phase in a ban on Russian oil imports.

Brent futures settled up $2.92, or 2.68%, at $111.70 a barrel. U.S. West Texas Intermediate futures closed $2.70 or 2.59% higher at $106.95 a barrel.

Both contracts recorded their first weekly gain in April. For several weeks, prices have been the most volatile since June 2020.

Gold inched lower on Thursday but prices finished a second consecutive weekly gain as the Ukraine crisis and broadening inflationary pressures lifted the safe-haven metal’s appeal.

Spot gold fell 0.29% to $1,971.95 per ounce, while U.S. gold futures slipped 0.49% to $1,974.9 but gained 1.51% for the week with markets closed Friday.

The pan-European Stoxx 600 provisionally ended up 0.68%, with travel and leisure stocks gaining 3.19% while technology dropped 0.46%.

The ECB kept its monetary policy unchanged but confirmed it will end its bond buying in the third quarter. Once the bond buying program is completed, the ECB is expected to begin hiking interest rates, following the same path as the Bank of England and the U.S. Federal Reserve.