Macro Roundup (Jun 29)

SHANGHAI, Jun 29 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar climbed on Tuesday and the euro held below $1.06 as European Central Bank (ECB) President Christine Lagarde offered no fresh insight into the central bank’s policy outlook.

The ECB is widely expected to follow its global peers by raising interest rates in July to try to check soaring inflation though economists are divided on the magnitude of any rate hike.

The euro held below $1.06 after Lagarde said the central bank would move gradually but with the option to act decisively on any deterioration in medium-term inflation, especially if there were signs of a de-anchoring of inflation expectations.

Stock futures were flat in overnight trading Tuesday after the major averages made a failed attempt at a bounce.

Futures tied to the Dow Jones Industrial Average edge 0.13% or 39 points, while the S&P 500 and the Nasdaq Composite rose 0.13% and 0.17%, respectively.

Pinterest shares jumped more than 4% after hours on news that CEO Ben Silbermann is stepping down.

During regular trading on Tuesday the Dow Jones Industrial Average dropped 491.27 points, or 1.56%, to 30,946.99, while the S&P 500 slid 2.01% to 3,821.55. The Nasdaq Composite fell 3% to 11,181.54.

Major averages rallied earlier in the session, with the Dow and S&P 500 up as much as 446 points and 1.17%, respectively. Markets gave up those gains following a disappointing consumer confidence index reading, which came in at 98.7 and missed Dow Jones’ estimate of 100. The moves followed slight losses in Monday’s session after the averages posted their best week for June last week.

Oil prices rallied for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly while Western governments agreed to explore ways to cap the price of Russian oil.

Brent crude futures climbed by $1.19, or 1%, to $116.28 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 96 cents, or 0.9%, to $110.53. Both contracts ended the previous session nearly 2% higher.

Leaders of the G7 group of wealthy nations said they will explore a potential ban on transporting Russian oil that has been sold above a certain price as they seek to step up pressure on Moscow over its invasion of Ukraine.

Gold prices were hemmed in a tight range on Tuesday as prospects of higher interest rates challenged bullion’s safe-haven appeal while recession risks boosted it.

Spot gold dipped slightly to $1,819.94 per ounce. U.S. gold futures fell 0.2% to $1,821.3.

The pan-European Stoxx 600 closed up by 0.2% provisionally, having initially gained 1% at the start of trading before sliding back toward the flatline. Oil and gas stocks jumped 2% to lead gains while tech shares slipped 1.5%.

The gains in Europe at the open tracked those in the Asia-Pacific region, which swung into positive territory during afternoon trade. The moves came after China’s decision to halve the quarantine period to seven days, with a further three days spent at home, which gave markets a signal that Beijing is relaxing its strict approach to eradicating Covid-19.