Macro Roundup (Jul 13)

SHANGHAI, Jul 13 —This is a roundup of global macroeconomic news last Friday and what is expected today.

The euro hovered close to a 20-year low near parity to the dollar on Tuesday amid concerns that an energy crisis could tip Europe into recession, while the U.S. Federal Reserve continues to aggressively tighten policy to curb inflation.

The single currency fell as low as $1.0006 on Monday, the lowest since December 2002.

The dollar index — which measures the greenback against six major peers, with the euro most heavily weighted - was also little changed at 108.17, following its surge overnight to the highest since October 2002 at 108.26.

Euro weakness has been a big part of the dollar index’s push higher, with the safe-haven U.S. currency also supported by worries about growth elsewhere too, with China in particular implementing strict zero-Covid policies to contain fresh outbreaks.

Stock futures were little changed in overnight trading on Tuesday as investors awaited a key inflation report that is expected to show a fresh high.

Futures on the Dow Jones Industrial Average edged up 18 points. S&P 500 futures and Nasdaq 100 futures were both flat.

The consumer price index, slated for at 8:30 a.m. ET Wednesday, is expected to climb by 8.8% in June on a year-over-year basis, according to Dow Jones’ survey of economists. That would be even higher than May’s 8.6% reading, which was the biggest increase since 1981.

Oil prices fell sharply on Tuesday on a strong dollar, demand-sapping COVID-19 curbs in top crude importer China and fears of a global economic slowdown.

Brent crude futures declined 7.1% to $99.49. U.S. West Texas Intermediate crude settled 7.9% lower at $95.84 per barrel.

The euro lost ground on Tuesday, trading near parity with the dollar, while stock markets fell on the prospect of rising interest rates and worries over economies worldwide.

A stronger U.S. currency usually weighs on oil because it makes the dollar-priced commodity more expensive for holders of other currencies.

Gold hit a nine-month low on Tuesday, continuing to reel under pressure from a strong dollar and rate hike bets while investors positioned for a raft of U.S. economic data that could determine the pace of monetary tightening.

Spot gold fell 0.48% to $1,725.33 per ounce. U.S. gold futures fell 0.46% to $1,723.8.

The pan-European Stoxx 600 index provisionally ended up 0.4%, with most sectors and major bourses in positive territory. Financial services stocks led the gains, up nearly 2%, while oil and gas stocks fell 1.2%.