Macro Roundup (Nov 17)

SHANGHAI, Nov 17 —This is a roundup of global macroeconomic news last night and what is expected today.

The euro pulled higher against the dollar on Wednesday as concerns about a missile strike in Poland eased but the dollar gained some support from stronger-than-expected U.S. retail sales data.

The market reversed from Tuesday’s risk-off shock after Poland and NATO said on Wednesday that the previous day’s explosion, which killed two, was probably from a stray fired by Ukraine’s air defenses and not an intentional Russian strike, easing fears the Russia-Ukraine war could spread beyond Ukraine.

The euro was last 0.33% higher at $1.0386 but still below the four-and-a-half month peak of $1.0481 it touched Tuesday when U.S. producer price inflation data was below expectations.

Tuesday’s U.S. data had suggested last week’s cooler-than-expected consumer price inflation was not a one-off, fueling hopes that the U.S. Federal Reserve can slow aggressive rate hikes that had sent the dollar soaring against the pound, euro and yen this year.

Then on Wednesday the Commerce Department said that October retail sales rose 1.3% compared with economist expectations for 1.0%, with estimates ranging from a 0.1% drop to a 2.0% jump.

Stock futures ticked higher Wednesday night as investors responded to a weak outlook from retail chain Target early in the day, and results from Nvidia and Cisco that landed after the market closed.

Investors are also anticipating more than half a dozen speakers from the Federal Reserve talking at events around the country Thursday.

Futures tied to the Dow Jones Industrial Average gained 50 points or 0.2%. S&P 500 futures added 0.2%, while Nasdaq-100 futures rose 0.3%.

Oil prices settled more than a dollar lower on Wednesday after Russian oil shipments via the Druzhba pipeline to Hungary restarted and as rising COVID-19 cases in China weighed on sentiment.

Brent crude futures settled a dollar lower at $92.86 a barrel, down 1.1%. U.S. West Texas Intermediate (WTI) crude futures slid by $1.33, or 1.5%, to settle at $85.59 a barrel.

Gold stalled near a three-month peak on Wednesday, buoyed by a softer dollar, while the market focus shifted from global tensions to the Federal Reserve’s interest rate strategy.

Spot gold was 0.16% lower at $1,775.39 per ounce, while U.S. gold futures were slightly higher at $1,778.9 per ounce.

The pan-European Stoxx 600 provisionally closed down 1%, with retail and autos both shedding 3.5% to lead losses. The food and beverages and insurance sectors posted 0.2% gains.