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Macro Roundup (Jun 1)
Jun 1, 2022 09:30CST
Source:SMM
The U.S. dollar rose on Tuesday as Treasury yields climbed and worries over a further acceleration in global inflation kept investors’ risk appetite at bay.

SHANGHAI, Jun 1 —This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar rose on Tuesday as Treasury yields climbed and worries over a further acceleration in global inflation kept investors’ risk appetite at bay.

The dollar was supported by demand for havens. U.S. stocks fell on Tuesday as hawkish comments from a Federal Reserve official spooked investors.

U.S. Treasury yields climbed on Tuesday, a day after Fed Governor Christopher Waller said the Fed should be prepared to raise interest rates by a half percentage point at every meeting from now on until inflation is decisively curbed.

The U.S. Dollar Currency Index, which tracks the greenback against six major currencies, was up 0.1% at 101.78. The dollar index is down 1.2% for May, or about its worst monthly loss in a year.

Stock futures moved slightly higher on Tuesday evening as Wall Street turned the page to another month.

Futures tied to the Dow Jones Industrial Average added 197 points, or 0.6%. Those for the S&P 500 ticked up about 0.5%. Nasdaq 100 futures gained roughly 0.5%.

The move in futures came after a down day for stocks, with the Dow falling 222.8 points, or 0.7% in a choppy trading session. The S&P 500 and Nasdaq Composite dipped 0.6% and 0.4%, respectively.

For the month of May, the Dow and S&P 500 finished little changed, after last week’s strong rally chipped away at long losing streaks for the indexes. The Nasdaq Composite underperformed, shedding more than 2%.

Oil prices surged on Tuesday after EU leaders reached an agreement to ban 90% of Russian crude by the end of the year. However, prices reversed course around 2 p.m. ET Tuesday following a report from The Wall Street Journal that OPEC is considering suspending Russia from the group’s output agreement.

U.S. crude futures ended the day 40 cents, or 0.35%, lower at $114.67 per barrel. Earlier in the session it traded as high as $119.43, a price last seen in early March.

Brent crude futures last traded 1% higher at $112.84 per barrel.

Gold prices fell on Tuesday as U.S. bond yields firmed, with gold futures posting its worst month since September.

Spot gold fell 1.1% to $1,835.29 per ounce. U.S. gold futures declined 1% to $1,833. Higher U.S. 10-year Treasury yields lower the appeal of zero-yield gold.

Gold futures closed down 3.31% in May, or the worst month since September when gold lost 3.36%. Still, gold futures is up 1.08% this year.

The pan-European Stoxx 600 had dropped 0.8% by the close, with retail stocks shedding 1.7% to lead losses while oil and gas stocks added 0.3% on the back of spiking oil prices. For the month of May, the index closed down 0.85%.

Macro

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