Macro Roundup (Jun 7)

SHANGHAI, Jun 7 —This is a roundup of global macroeconomic news last night and what is expected today.

The euro edged higher on Monday as risk appetite picked up while investors awaited a European Central Bank (ECB) policy meeting later this week.

European shares also rose, helped by miners and luxury stocks as China eased more COVID-19 restrictions.

Markets, which have already priced in several ECB rate increases and the end of bond-buying stimulus, want more clarity on what comes after.

Hedge funds are already loaded up on euros. U.S. futures market data shows speculators are holding their most significant net-long euro position in 12 weeks.

Stock futures dipped Monday evening after a sleepy day of trading as investors await key inflation data due out later in the week.

Futures tied to the Dow Jones Industrial Average edged lower by 0.1%. S&P 500 futures and Nasdaq 100 futures also fell 0.1% each.

In regular trading on Monday, all three of the major averages finished slightly higher. The Dow finished the day up about 16 points, or less than 0.1%, after jumping more than 300 points earlier in the day. The S&P 500 added 0.3%, and the tech-heavy Nasdaq Composite advanced 0.4%.

The indexes gave back most of their gains from earlier in the day as the 10-year Treasury yield spiked up to 3% and hit its highest level in nearly a month.

Oil prices topped $120 a barrel in choppy trade on Monday buoyed by Saudi Arabia raising its July crude prices but amid doubts that a higher output target for OPEC+ oil producers would ease tight supply.

Brent crude touched an intraday high of $121.95 per barrel before trading down 0.5% at $118.23. U.S. West Texas Intermediate (WTI) crude futures rose to their highest level in three months briefly trading at $120.99 per barrel; they settled down 37 cents, or 0.3%, at $118.50 per barrel.

Saudi Arabia raised the July official selling price (OSP) for its flagship Arab light crude to Asia by $2.10 from June to a $6.50 premium, the highest since May, when prices hit all-time highs due to worries of disruption in supplies from Russia.

Gold prices fell on Monday, pressured by an uptick in the U.S. dollar and Treasury yields, as attention turned to U.S. inflation data this week that could strengthen the case for aggressive interest rate hikes by the Federal Reserve.

Spot gold was down 0.5% at $1,841.29 per ounce by 2:03 p.m. EDT (1803 GMT), while U.S. gold futures settled down 0.4% at $1,843.70.

U.S. bond yields were higher in the run-up to data on Friday which is expected to show still high inflation. The dollar also firmed, making gold less appealing for overseas buyers. [US/][USD/]

Although gold is considered a hedge against inflation, higher interest rates to tame the rising price pressures dim the appetite for non-yielding bullion.

The pan-European Stoxx 600 provisionally ended up 1%, with mining stocks climbing 2.7% to lead gains as most sectors and major bourses closed in positive territory.