Macro Roundup (Jul 21)

SHANGHAI, Jul 21 —This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar rose against the euro on Wednesday in a choppy session, but its gains were capped as traders were hesitant to drive big moves ahead of a crucial European Central Bank policy decision on Thursday.

The single currency has rallied about 2% in the last three trading sessions on expectations the ECB might deliver a big 50-bps rate hike and a Reuters report that a key Russian gas pipeline would reopen on time after maintenance.

The European Union told member states on Wednesday to cut gas usage by 15% until March as an emergency step after President Vladimir Putin warned that Russian supplies sent via the biggest pipeline to Europe could be reduced further and might even stop.

Both events - the ECB meeting and the reopening of the Nord Stream 1 conduit after a 10-day shutdown - are due on Thursday, leaving markets on tenterhooks.

The dollar was about 0.47% higher against the euro, which traded at $1.0176.

Stock futures dipped on Wednesday evening as investors hoped to build on a strong start to the week amid a flurry of corporate earnings.

Futures tied to the Dow Jones Industrial Average shed 76 points, or about 0.2%. S&P 500 futures ticked down 0.3%, while Nasdaq 100 futures slipped more than 0.3%.

The move in futures comes as Wall Street is enjoying a July rebound, with the three major averages hitting their highest levels in more than a month.

The Nasdaq Composite jumped nearly 1.6% on Wednesday, its fourth positive session in five. The tech-heavy index is up about 3.9% for the week.

Meanwhile, the Dow and S&P 500 each rose for the third day in four. The blue-chip index is up nearly 1.9% for the week, while the S&P 500 has gained 2.5% thus far.

Oil prices slipped on Wednesday, after U.S. government data showed lower gasoline demand during the peak summer driving season and as interest rate hikes by central banks to fight inflation fed fears the economy could slow, cutting energy demand.

Brent crude prices for September settled 43 cents lower at $106.92 per barrel. U.S. West Texas Intermediate (WTI) crude for August settled 1.88% lower at $102.26. The WTI contract expires on Wednesday.

Gold slipped into a tight range on Wednesday as a steady dollar countered limited support for bullion from expectations that the U.S. Federal Reserve may not resort to a 100-basis-point interest rate hike next week.

Spot gold was down 0.96% at $1,694.59 per ounce while U.S. gold futures eased 1.06% to $1,692.5.

The pan-European Stoxx 600 closed down by 0.2% provisionally, after reversing initial gains earlier in the session. The banking and automotive sectors each fell more than 0.9% to lead losses. Tech shares climbed 1.7% after Netflix said it expects to return to subscriber growth in the third quarter.