SHANGHAI, Nov 14 —This is a roundup of global macroeconomic news last Friday night and what is expected today.
Investors are stampeding away from the dollar, as softer-than-expected U.S. consumer price data raises hopes that the Federal Reserve may need to tighten monetary policy less than expected in its fight against inflation and bolsters the case for risky assets.
Expectations of rising U.S. interest rates, volatile markets and geopolitical uncertainty have boosted the dollar over the last two years to a two-decade high against a basket of currencies.
The U.S. currency was down as much as 3.3% against Japanese yen, its sharpest one-day slide since July 2016. Against the euro, it was off by 1.7%, its biggest drop since Nov. 4. Against a basket of currencies, the dollar was off about 2.2%, on pace for its worst day in nearly seven years.
The data sent U.S. Treasury yields tumbling, with the benchmark 10-year hitting 3.8387%, its lowest in about a month - narrowing gaps between yields on U.S. and foreign government debt that have burnished the dollar’s appeal.
Stock futures dipped in overnight trading Sunday after the S&P 500 posted its biggest weekly gain in almost five months on the back of easing inflation data.
Dow Jones Industrial Average futures fell 100 points. S&P 500 futures declined 0.4% and Nasdaq 100 futures traded 0.6% lower.
The S&P 500 rallied 5.9% last week for its best week since June. Investors cheered a lighter-than-expected inflation reading, betting that the Federal Reserve would soon slow its aggressive tightening campaign.
Oil prices jumped by more than 3% on Friday after health authorities in China eased some of the country’s heavy COVID curbs, raising hopes for improved economic activity and demand in the world’s top crude importer.
Brent crude futures rose $2.28, or 2.4%, to $95.95 a barrel, extending a 1.1% rise from the previous session.
U.S. West Texas Intermediate (WTI) crude futures gained $2.47, or 2.9%, to $88.94 a barrel, after climbing 0.8% in the previous session.
Gold prices extended gains to a near three-month high on Friday and were heading for their best week since at least July 2020 as signs of cooling U.S. inflation bolstered bets that the Federal Reserve would be less hawkish on rate hikes going forward.
Spot gold gained 0.6% to $1,765.26 per ounce, after hitting its highest since Aug. 18 earlier in the session. Bullion is up 5% so far this week.
U.S. gold futures gained 0.9% to $1,769.60.
The pan-European Stoxx 600 closed fractionally above the flatline, having given up earlier gains of around 0.7%. Basic resources ended 2.6% higher while health care stocks fell 2.4%.