Macro Roundup (May 31)

SHANGHAI, May 31 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar nursed last week’s losses on Monday and was headed for its first monthly drop in five months as investors have scaled back bets that rising U.S. rates will spur further gains and as fears of a global recession have receded a little.

The week ahead is full of data that could provide clues on the outlook for global growth, U.S. interest rates and the dollar with Chinese Purchasing Managers’ Index figures, U.S. jobs numbers and growth data in resource bellwether Australia.

Trade was likely to be lightened through Monday as U.S. stock and bond markets close for the Memorial Day public holiday.

Early in the Asia session the dollar was a fraction weaker on the euro at $1.0728, just above a five-week low, having dropped about 1.5% on the common currency last week.

For US stocks, S&P 500 futures rose on Monday night, as Wall Street tried to build on last week’s momentum.

Dow Jones Industrial Average futures gained 36 points, or 0.1%. S&P 500 and Nasdaq 100 futures climbed 0.3% and 0.8%, respectively. The U.S. stock market didn’t open Monday due to the Memorial Day holiday.

Those moves follow the best weekly gains for the Dow and S&P 500 since November 2020.

The Dow closed up 6.2% for the week, ending an eight-week losing streak. The S&P 500 gained 6.5%, and the Nasdaq gained 6.8% on the week, ending positive after seven continual weeks of losses. Solid earnings from the retail sector, as well as an inflation report that showed prices could be easing, lifted investor sentiment.

A chunk of last week’s gains came Friday, when the Dow rallied more than 550 points, and the S&P 500 popped 2.5%. The Nasdaq, meanwhile, rallied 3.3%, boosted by solid reports from tech companies, as well as a dip in the 10-year Treasury yield.

Still, traders continue to deliberate whether the bounce marks a bottom as stocks remain well off their highs. The Dow is 10.1% below its 52-week high, the S&P 500 is down 13.7%, and the Nasdaq is off by about 25.2%.

Oil prices rose to two-month highs on Monday as traders waited to see if the European Union would reach an agreement on banning Russian oil ahead of a meeting on a sixth package of sanctions against Moscow for its invasion of Ukraine.

Brent crude futures gained 46 cents, or 0.4%, to $119.89 a barrel at 0111 GMT, while U.S. West Texas Intermediate (WTI) crude futures jumped 60 cents, or 0.5%, to $115.67 a barrel, extending solid gains from last week.

The EU is due to meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, which Moscow calls a “special operation” to disarm its neighbor.

Gold prices firmed in choppy trading on Monday, as a weakening dollar buoyed greenback-priced bullion, although gains were capped by some investors turning to riskier assets in Asia.

Spot gold was up 0.2% at $1,856.86 per ounce, as of 0152 GMT. U.S. gold futures edged 0.1% higher to $1,859.40.

The pan-European Stoxx 600 provisionally closed up 0.6%, with tech stocks climbing 2.1% to lead the gains as most sectors and major bourses ended in positive territory.