Macro Roundup (Jul 5)

SHANGHAI, Jul 5 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar kept trade-sensitive currencies pinned near multi-year lows on Monday and the euro was under pressure as investors sought safety due to worries about slowing global growth.

Data on Friday showed euro zone inflation surging to another record, adding to the case for the European Central Bank to hike interest rates this month.

While the common currency was steady at $1.0435 on Monday, it is barely above May’s five-year trough of $1.0349 and highlights the market’s preference for dollars as gloom clouds the outlook.

The Australian and New Zealand dollars hit two-year lows on Friday and weren’t far from those levels early in the Asia session, with the Aussie down 0.3% to $0.6796, after falling to as low as $0.6764 on Friday. The kiwi slipped 0.1% to $0.6197.

Trade is likely to be lightened ahead of the Independence Day holiday in the United States.

Stock futures inched higher in overnight trading after the major averages finished another losing week.

Stock futures tied to the Dow Jones Industrial Average rose 18 points or 0.06%. S&P 500 futures inched 0.18% higher, and Nasdaq 100 futures added 0.43%.

The moves come as markets finished one of the worst halves in decades on Thursday, and major averages posted their fourth week of losses in five despite modest gains during Friday’s trading session.

Last week, despite modest Friday gains, the Dow dipped 1.3%, the S&P 500 dropped 2.2%, and the Nasdaq fell 4.1%. During Friday’s trading session, the Dow Jones Industrial Average added 321.83 points, or 1.1%, to 31,097.26, the S&P 500 gained 1.1% to 3,825.33 and the Nasdaq Composite edged 0.9% higher to 11,127.85.

Oil prices fell in early Asian trade on Monday, paring gains from the previous session as fears of global recession weighed on the market even as supply remains tight amid lower OPEC output, unrest in Libya and sanctions on Russia.

Brent crude futures slipped 35 cents, or 0.3%, to $111.28 a barrel at 0016 GMT, having jumped 2.4% on Friday.

U.S. West Texas Intermediate (WTI) crude futures similarly dropped 32 cents, or 0.3%, to $108.11 a barrel, after climbing 2.5% on Friday.

Spot gold was down 0.2% at $1,807.19 per ounce, as of 0101 GMT, after hitting a five-month low of $1,783.50 on Friday. U.S. gold futures fell 0.5% to $1,809.50.

The dollar hovered close to recent two-decade highs, continuing to make gold less attractive for buyers holding other currencies, after playing a significant part in bullion’s worst quarterly showing in over a year.

Benchmark U.S. 10-year Treasury yields fell to their lowest level in a month on Friday, buoying prices of non-yielding bullion.

The pan-European Stoxx 600 index provisionally closed up by 0.6%, with oil and gas stocks jumping 4.1% to lead gains as most sectors and major bourses traded in positive territory. Tech stocks bucked the upward trend to fall 1%.