Macro Roundup (Nov 16)

SHANGHAI, Nov 16 —This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar lost ground to other currencies including the euro, the yen and sterling after U.S. economic data provided further evidence that inflation was starting to ease, improving investor appetite for riskier assets and reducing demand for the safe-haven greenback.

The U.S. producer price index (PPI) increased 8.0% for the 12 months through October compared with economist expectations for 8.3% and September’s 8.4% increase, according to the Labor Department data.

The report, following last week’s smaller-than-expected increase in consumer prices for October, encouraged investors who have been closely monitoring inflation data for signs that the Federal Reserve could slow its interest rate hikes, which are aimed at dampening soaring prices.

The euro was last up 0.19% at $1.0345 after earlier touching its highest since July 1. In Europe traders were also eying encouraging data such as German economic sentiment ZEW index, which rose in November.

Stock futures fell in overnight trading as investors weighed another lighter-than-expected inflation report and looked ahead to retail sales data due out Wednesday.

Futures tied to the Dow Jones Industrial Average fell 60 points, or about 0.2%. S&P 500 and Nasdaq 100 futures slipped 0.2% and 0.17%, respectively.

All the major averages finished the regular trading session higher Tuesday, with the S&P 500 closing up 0.87% and the Dow adding 56.22 points, or 0.17%. The Nasdaq jumped 1.45% and is the only major average on pace to eke out slight gains for the week. The producer price index report, which measures wholesale prices, came in below expectations, which alleviated some of investors’ concerns around inflation.

Oil prices rose on Tuesday and settled higher after news that oil supply to Hungary via the Druzhba oil pipeline has been temporarily suspended due to a fall in pressure.

Brent crude futures rose 72 cents to settle at $93.86 a barrel, while U.S. West Texas Intermediate crude rose $1.05 to $86.92.

Gold prices edged up near their highest in three months reached earlier on Tuesday on some safe-haven buying after news that two people were killed in eastern Poland near the Ukraine border.

Spot gold last rose 0.38% to $1,778.48 per ounce. U.S. gold futures settled little changed at $1,776.8.

The pan-European Stoxx 600 provisionally closed up by 0.2%, gaining on the back of the U.S. data release. Technology stocks led the gains, adding 1.4% while telecoms fell over 1%.