Macro Roundup (May 25)

SHANGHAI, May 25 —This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar index hit a nearly one-month low on Tuesday after European Central Bank President Christine Lagarde said eurozone interest rates will likely be in positive territory by the end of the third quarter, giving the euro a boost.

Lagarde’s comments implied an increase of at least 50 basis points to the ECB deposit rate and kept speculation alive of bigger rate hikes this summer to fight record-high inflation, partly due to rising energy prices over Russia’s war against Ukraine as well as massive public-sector stimulus the pandemic.

The euro was up 0.4% at $1.0732 at 4:05 p.m. Eastern time. Over the past seven trading sessions, the single currency has rebounded 3.7% after having fallen to its lowest level since January 2017, at $1.0349, earlier this month.

U.S. stock futures rose on Tuesday night after the Nasdaq Composite dropped during the regular session, following a warning of slowing growth from social media company Snap that hurt the tech-heavy index.

Dow Jones Industrial Average futures rose 111 points, or 0.4%. S&P 500 and Nasdaq 100 futures climbed 0.5% and 0.7%, respectively.

The Nasdaq Composite fell 2.4% during regular trading while the S&P 500 slid 0.8%. The Dow rose by 0.2% in a late-day reversal, despite falling as much as 1.6% earlier in the session.

Oil prices were near flat on Tuesday after choppy trade as tight supply worries offset concerns over a possible recession and China’s COVID-19 curbs.

Brent crude rose 14 cents to settle at $113.56 a barrel. U.S. West Texas Intermediate (WTI) crude fell 52 cents to settle at $109.77 a barrel.

Oil has surged this year with Brent hitting $139 in March, the highest since 2008, after Russia’s invasion of Ukraine exacerbated supply concerns.

Gold prices firmed on Tuesday, as the U.S. dollar weakened to a one-month low for a second consecutive session, making greenback-priced bullion less expensive for overseas buyers.

Spot gold was up 0.7% at $1,866.39 per ounce. U.S. gold futures rallied nearly 1% to $1,865.3, or to its highest levels since May 9 when gold traded as high as $1,885.6.

The dollar, a rival safe-haven asset to gold, has been falling broadly alongside a decline in Treasury yields from multi-year peaks, with aggressive easing by the Federal Reserve already priced in.

The pan-European Stoxx 600 closed down 1.1%, with the retail and travel sectors both dropping 3% to lead the losses as most sectors fell into negative territory. Tech shares were off by 2.5% after a profit warning from U.S. social media firm Snap and news of layoffs at European start-ups Klarna and Gorillas.