Macro Roundup (Jun 9)

SHANGHAI, Jun 9 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar slipped against a basket of major currencies for a second straight day on Wednesday but still managed to hit a fresh 20-year high against the yen, while the euro strengthened ahead of a policy announcement by the European Central Bank.

The yen weakened to hit 134.47 per dollar, its softest since Feb. 27, 2002, and the euro hit its highest level against the safe-haven yen since Jan. 5, 2015, as the Bank of Japan remains one of the few global central banks to maintain a dovish stance while others have adopted tightening policies of hiking interest rates to combat inflation.

The European Central Bank (ECB) is expected to take a hawkish stance, with interest rate hikes to begin in July as traders price in 75 basis points of hikes by September.

Stock futures were flat in overnight trading Wednesday after the major averages ended the regular session lower and U.S. Treasury yields rose.

Futures on the Dow Jones Industrial Average inched about 30 points higher, or 0.1%. S&P 500 futures and Nasdaq 100 futures were flat.

During regular trading, the Dow Jones Industrial Average dipped 269.24 points, or 0.81%, to 32,910.90, while the S&P 500 shed 1.08% to close at 4,115.77. The Nasdaq Composite slid 0.73% to finish at 12,086.27.

Oil prices rose to a 13-week high on Wednesday as U.S. demand for gasoline has kept rising despite record pump prices, on expectations China’s oil demand will rise and on supply concerns in several countries.

Brent futures rose $2.77, or 2.3%, to $123.34 a barrel. U.S. West Texas Intermediate (WTI) crude rose $2.70, or 2.3%, to $122.11.

U.S. commercial crude oil inventories rose unexpectedly last week, while crude in the Strategic Petroleum Reserve fell by a record amount as refiners’ inputs rose to their highest since January 2020, the Energy Information Administration said. U.S. gasoline stocks fell by a surprise 0.8 million barrels as demand for the fuel rose despite sky-high pump prices. Analysts polled by Reuters had expected gasoline stocks to rise 1.1 million barrels.

Gold inched up in choppy trade on Wednesday as concerns over economic growth boosted the metal’s safe-haven appeal ahead of U.S. inflation data that could guide the Federal Reserve’s rate hike timeline.

Spot gold rose marginally higher to $1,852.25 per ounce while U.S. gold futures settled up 0.17% at $1,855.3.

The pan-European Stoxx 600 provisionally ended 0.7% lower, with insurance stocks shedding 1.6% to lead losses. Retail stocks bucked the downward trend to add 2%.

Credit Suisse shares fell nearly 7% in early morning deals after the embattled lender warned that it is likely to post a group-wide loss for the second quarter on the back of the war in Ukraine and rising interest rates. Shares of the bank ended the session in positive territory, however.