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Macro Roundup (Aug 4)
Aug 4, 2022 09:30CST
Source:SMM
The U.S. dollar was up against the yen on Wednesday after data showed a surprise pickup in the U.S. services industry in July, while hawkish comments from Federal Reserve officials this week also supported the greenback.

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

The U.S. dollar was up against the yen on Wednesday after data showed a surprise pickup in the U.S. services industry in July, while hawkish comments from Federal Reserve officials this week also supported the greenback.

The Institute for Supply Management said its non-manufacturing PMI rebounded last month from June. The increase ended three straight monthly declines. It also showed supply bottlenecks and price pressures eased, and backed up the view that the economy is not in a recession.

Fed officials voiced their determination again on Wednesday to rein in high inflation, although one noted a half-percentage-point hike in the U.S. central bank’s key interest rate next month might be enough to march toward that goal.

Stock futures inched downward Wednesday evening after the major averages snapped a two-day slide, helped by robust earnings and stronger economic reports for June and July that led investors to look past the possibility of a recession .

Futures tied to the Dow Jones Industrial Average fell 23 points or 0.07%. S&P 500 futures slipped by 0.1% and Nasdaq 100 futures lost 0.2%.

In regular hours trading, all three major averages ended the day on higher. The Dow advanced by more than 400 points, while the S&P 500 hit its highest level since June. The tech-heavy Nasdaq Composite jumped about 2.5%.

Oil prices slid about 4% on Wednesday, with losses accelerating after U.S. data showed crude and gasoline stockpiles unexpectedly surged last week and as OPEC+ said it would raise its oil output target by 100,000 barrels per day (bpd).

Brent crude futures settled down $3.76, or 3.7%, at $96.78 a barrel. West Texas Intermediate (WTI) crude futures fell $3.76, or 4%, to $90.66. Both contracts had seesawed earlier in the session.

The premium for front-month Brent futures over barrels loading in six months’ time is at a three-month low, indicating waning concern about tight supply. The same premium for WTI futures neared a four-month low.

Gold prices traded in a tight range on Wednesday, pressured by a stronger dollar and Treasury yields as hawkish comments from U.S. Federal Reserve officials pulled the metal further away from last session’s one-month peak.

Spot gold rose 0.1% to $1,761.76 per ounce, seesawing in a roughly $20 range, while U.S. gold futures fell 0.7% to $1,776.4.

The dollar index rose 0.2%, making dollar-priced gold more expensive for other currency holders. U.S. 10-year Treasury yields also jumped to their highest in nearly two weeks.

The pan-European Stoxx 600 closed 0.5% higher, paring earlier losses. Tech stocks added 3.2% to lead the gains as most sectors and major bourses entered positive territory.

Market

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