Macro Roundup (Aug 5)

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

The dollar eased against most major currencies on Thursday as support from the Federal Reserve’s hawkish messaging subsided a day before hotly anticipated U.S. jobs data, even as pessimism about a protracted recession ebbed.

The Bank of England on Thursday raised interest rates by the most since 1995, but the British pound weakened as the central bank warned that a long recession was on its way with inflation seeing toping 13%.

The dollar index fell 0.73% at 105.73, with the euro up 0.80% to $1.0245.

It slightly extended early slippage on data showing of the number of Americans filing new claims for unemployment benefits increased last week, while the U.S. trade deficit narrowed sharply in June as exports surged to a record high, a trend that could see trade continuing to contribute to gross domestic product in the third quarter.

Stock futures were flat in overnight trading Thursday as investors awaited for Friday’s jobs report for further clues about the Federal Reserve’s path of rate hikes and the state of the economy.

Futures on the Dow Jones Industrial Average were little changed. S&P 500 futures and Nasdaq 100 futures were also flat.

Economists expect 258,000 jobs were added in July, down from 372,000 in June, according to Dow Jones. Unemployment is expected to hold steady at 3.6%. The jobs report is released Friday at 8:30 a.m. ET.

The S&P 500 is up a modest 0.5% on the week, attempting to post a three-week winning streak. The blue-chip Dow has dipped 0.4% this week, while the tech-heavy Nasdaq Composite is outperformer, up 2.7% on the week.

Global oil prices dropped on Thursday to their lowest levels since before Russia’s February invasion of Ukraine as traders fretted over the possibility of an economic recession later this year that could torpedo energy demand.

Benchmark Brent crude futures ended the day 2.75% lower at $94.12 a barrel after touching a mid-session low of $93.20, the lowest since Feb. 21. West Texas Intermediate (WTI) crude futures settled 2.3% lower at $88.54 per barrel, after touching the lowest since Feb. 3.

Gold prices climbed over 1% to hit a fresh one-month peak on Thursday underpinned by a retreat in the dollar and U.S. Treasury yields, and as investors kept a close tab on U.S.-China tensions.

Spot gold was up 1.6% to $1,793.34 per ounce, having risen to its highest since July 5 earlier. U.S. gold futures jumped 1.89% to $1,810.90 per ounce.

The pan-European Stoxx 600 provisionally closed slightly above the flatline. Travel and leisure stocks were the standout performers, gaining 1.9%, while oil and gas stocks fell 1.3%.