Macro Roundup (Aug 15)

SHANGHAI, Aug 15 —This is a roundup of global macroeconomic news last Friday and what is expected today.

The dollar rallied on Friday but was set for a weekly drop as traders weighed improving U.S. inflation data against comments from Federal Reserve officials who cautioned the battle against rising prices is far from over.

U.S. import prices declined for the first time in seven months in July on lower costs for both fuel and non-fuel products, data showed on Friday, in the third report this week to hint inflation may have peaked.

Another two key inflation measures, for consumer prices and producer prices, cooled in July, data on Wednesday and Thursday showed, prompting traders to pare back views that the Fed will raise interest rates by 75 basis points for a third consecutive time when it meets in September.

The dollar dropped more than 1% after Wednesday’s consumer price index data, but has reversed some of those losses and is on track for a 0.8% decline for the week.

U.S. equity futures were slightly lower Sunday evening after some positive inflation data helped advance all of the major indexes and ahead of a big earnings week for retailers.

Futures tied to the Dow Jones Industrial Average fell 55 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures also fell 0.2%.

Last week the S&P 500 advanced 3.25% to notch its fourth positive week in a row and its longest winning streak since 2021. The Nasdaq Composite ended the week 3.08% higher, also for its fourth straight week. The Dow added 2.9%.

The gains came after economic data showed inflation pressures could be easing a bit. The consumer price index was flat from June to July, the producer price index showed a surprise decline and import prices fell more than expected.

Oil prices plunged around 2% on Friday, on expectations that supply disruptions in the U.S. Gulf of Mexico would be short-term, while recession fears clouded the demand outlook.

Futures, however, were still on track for a weekly gain.

Brent crude futures fell $1.47, or 1.5%, to $98.13 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.08, or 2.2%, to $92.26 a barrel. Both contracts gained more than 2% on Thursday.

Gold prices drifted higher on Friday helped by a drop in U.S. Treasury yields and setting the metal on path for a fourth straight week of gains, as investors took stock of the recent inflation data out of the United States.

Spot gold rose 0.6% to $1,800.196 per ounce and was headed for a more than 1% weekly rise. U.S. gold futures were up 0.54% at $1,817.00.

The pan-European Stoxx 600 provisionally closed up 0.2%, with most major bourses in positive territory. Sectors showed a more mixed picture, with travel and leisure stocks climbing 3.9% while retail shares dropped 0.4%.