Macro Roundup (May 20)

SHANGHAI, May 20 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar slipped across the board on Thursday, falling to a 2-week low, extending its pullback from a two-decade high, as most major currencies battered by the greenback’s advance this year drew buyers.

With volatility on the rise in global financial markets, the dollar logged sharp declines against the Japanese yen and the Swiss franc, which tend to attract investors in times of market stress or risk.

But the dollar also fared poorly against riskier currencies, including the Australian and the New Zealand dollar, as deep year-to-dates losses for these currencies attracted some buyers.

U.S. stock futures rose slightly Thursday night, as traders watched to see if the S&P 500 will tumble into bear market territory.

S&P 500 futures traded 0.1% higher, while Nasdaq 100 futures gained 0.3%. Futures tied to the Dow Jones Industrial Average advanced 34 points, or 0.1%.

Those moves came after another downbeat day on Wall Street. The Dow and Nasdaq, meanwhile, dipped 0.8% and 0.3%, respectively.

The S&P 500 fell 0.6% and is now 18.6% below a record closing high set in early January. The index is also more than 19% below an intraday all-time high reached earlier this year. At those levels, the benchmark index is within a stone’s throw of entering a bear market — defined by many on Wall Street as a 20% drop from a 52-week high.

Oil prices rebounded from earlier losses in another volatile session on Thursday as Chinese officials planned to ease restrictions in Shanghai, which could further tighten global energy supply, and as the dollar retreated from recent gains.

Crude benchmarks continued their spate of wild swings, with both Brent and U.S. crude rising by nearly $5 a barrel in the span of a few hours, recovering from losses earlier in the week.

Brent crude futures for July ended the day at $112.04 per barrel for a gain of 2.7%. U.S. West Texas Intermediate (WTI) crude futures for June settled $2.62, or 2.4%, higher at $112.21 per barrel.

Gold rose over 1% on Thursday as a slide in the dollar and Treasury yields burnished bullion’s safe-haven appeal after weak U.S. jobs numbers compounded economic concerns. Spot gold rose 1.4% to $1,840.97 per ounce, while U.S. gold futures settled up 1.4% at $1,841.2.

Gold prices dropped to a near four-month low earlier on Monday and are up about 3% since the dollar backtracked from 20-year highs.

The pan-European Stoxx 600 closed down 1.4%, with food and beverages shedding 3.6% to lead losses as all sectors and major bourses slid into negative territory.

The negative trade for European stocks came after regional markets closed lower on Wednesday as concerns over inflation roiled markets on both sides of the Atlantic.

U.K. data showed inflation soared to a 40-year high of 9% in April as food and energy prices spiraled, official figures revealed Wednesday, escalating the country’s cost-of-living crisis.