Macro Roundup (Jul 4)

SHANGHAI, Jul 4 —This is a roundup of global macroeconomic news last Friday and what is expected today.

Sterling slumped on Friday against the dollar and was set for its worst week against the greenback in a year as renewed fears of a global recession coupled with UK weak economic data knocked the British currency.

After its biggest six-month decline since 2008 against the U.S. dollar, risk-sensitive sterling briefly dipped below $1.20 against a strengthening U.S. dollar and was last 0.66% lower at $1.2094.

Sterling also fell against a weakening euro and recorded its biggest half-year decline against the single currency since the start of the pandemic in 2020.

Stocks rose on Friday to start the quarter after the S&P 500 closed out its worst first-half performance in decades.

The Dow Jones Industrial Average rose 321.83 points, or 1.1%, to 31,097.26. The S&P 500 rose 1.1% to 3,825.33. The Nasdaq Composite was also up by 0.9% to 11,127.85.

Despite the gains, all of the major averages posted their fourth down week in five. The Dow fell 1.3% for the week. The S&P 500 lost 2.2%, and the Nasdaq finished lower by 4.1%.

Oil prices rose nearly 3% on Friday as supply outages in Libya and expected shutdowns in Norway outweighed expectations that an economic slowdown could dent demand.

Brent crude futures were up $2.71, or 2.5%, at $111.74 a barrel, while West Texas Intermediate crude (WTI) gained $2.81, or 2.7%, to $108.57 a barrel.

Both contracts fell around 3% on Thursday, ending the month lower for the first time since November. For the week, Brent was on track for a loss of 1.2%, while WTI was set to rise 0.9%.

Prices rose on Friday despite the release of industry data showing U.S manufacturing activity slowed more than expected last month, adding to evidence that the country’s economy was cooling as the Federal Reserve tightens monetary policy.

Gold slipped on Friday en route to a third straight weekly dip as a firm dollar and looming rate hikes soured appetite for the non-yielding asset, while India’s import tax hike on bullion also dampened its demand prospects.

Spot gold was last trading flat at $1,806.5 per ounce and fell more than 1% for the week. U.S. gold futures rose marginally higher to $1,807.7.

The pan-European Stoxx 600 index closed flat, having earlier posted gains of 1% in early deals. Tech stocks fell 2% to lead losses while utilities gained 3%.