Macro Roundup (Jun 22)

SHANGHAI, Jun 22 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar index was down 0.3% at 104.38, with the euro firmer on the day, at $1.0536, up 0.3%. The European single currency rose after European Central Bank Chief Economist Philip Lane said the ECB will raise interest rates by 25 basis points at its July meeting, but the size of its September hike is still to be decided, suggesting a larger 50 basis point hike could be in the cards.

Sterling also rose against the dollar, up 0.2% at $1.2271 on hawkish comments from Bank of England policymakers. BoE chief economist Huw Pill said on Tuesday the central bank would need to raise interest rates further in the near future to tackle surging inflation.

U.S. stock index futures fell slightly overnight Tuesday after the major averages jumped in regular trading hours, attempting to claw back some losses following weeks of selling.

Futures contracts tied to the Dow Jones Industrial Average slipped 88 points or 0.29%, while S&P 500 futures declined 0.25%. Nasdaq 100 futures dipped 0.27%.

During regular trading Tuesday, the Dow surged 641 points, or 2.15%. The S&P 500 added 2.45%, turning in its best day since May 4. The jump comes after the benchmark index slumped 5.79% last week in its worst weekly performance since March 2020.

The Nasdaq Composite advanced 2.51% on Tuesday, following its tenth week of losses in the last 11 weeks.

Oil prices edged up on Tuesday on high summer fuel demand while supplies remained tight because of sanctions on Russian oil after its invasion of Ukraine.

Brent crude futures settled 52 cents, or 0.5%, higher at $114.65 a barrel. The U.S. West Texas Intermediate (WTI) crude contract for July expired on Tuesday, closing at $110.65, with a gain of $1.09, or 1%. The more active August contract was up $1.53 at $109.52.

Both benchmarks posted a weekly loss last week. For WTI it was the first weekly loss in eight weeks, for Brent the first in five.

Gold prices were hemmed into a range on Tuesday as rising U.S. Treasury yields and aggressive rate hike bets dimmed bullion’s appeal despite a pullback in the dollar.

Spot gold fell 0.2% to $1,834.19 per ounce by 1:56 p.m. ET (1756 GMT). U.S. gold futures settled down 0.1% at $1,838.8.

The pan-European Stoxx 600 index closed up 0.36%, paring earlier gains of more than 1%. Autos climbed 1.5% to lead gains while utilities slipped 0.9%.

The positive trade for Europe comes as global markets appear to be staging a comeback rally after a tumultuous week last week.