Macro Roundup (Nov 23)

SHANGHAI, Nov 23 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar retreated across the board on Tuesday, ceding some of the ground gained in the previous session, as investors looked past worries about China’s COVID flare-ups, boosting demand for more risky currencies.

Equities, commodities and riskier currencies were largely firmer on Tuesday, a day after fresh COVID-19 curbs in China fueled worries over the global economic outlook.

The euro rose 0.6% against the dollar to $1.0302, on pace to snap a three-session streak of losses.

The dollar has rallied against every major currency this year, boosted by the Federal Reserve’s supersized interest rate hikes as it battles inflation. But recent cooler-than-expected U.S. consumer price data has spurred investors’ hopes that the Fed may be in a position to moderate its pace of hikes.

Federal Reserve Bank of Cleveland President Loretta Mester reiterated Tuesday that getting inflation down remains critical for the central bank.

U.S. stock futures were little changed on Tuesday night, as investors looked ahead to Federal Reserve meeting minutes for clues into the pace of future interest rate hikes.

Dow Jones Industrial Average futures rose by 14 points, or 0.05%. S&P 500 futures gained 0.03%, while Nasdaq 100 futures dipped 0.06%.

The Dow Jones Industrial Average rallied nearly 400 points, or about 1.2%, during the regular session Tuesday. The S&P 500 rose 1.36%, closing above the 4,000 level for the first time since September. Meanwhile, the Nasdaq Composite jumped 1.36%.

Oil rose on Tuesday after top exporter Saudi Arabia said OPEC+ was sticking with output cuts and could take further steps to balance the market, outweighing global recession worries and concern about China’s rising Covid-19 case numbers.

Brent crude rose $1.08, or 1.2%, to $88.53. U.S. West Texas Intermediate (WTI) crude was up $1.14, or 1.4%, at $81.18.

Gold prices on Tuesday steadied above last session’s low as a retreat in the dollar and benchmark U.S. Treasury yields was offset by a rise in equities, while investors awaited cues on the U.S. Federal Reserve’s monetary policy path.

Spot gold was up 0.1% at $1,740.29 per ounce, while U.S. gold futures settled up 0.1% at $1,740.90.

The pan-European Stoxx 600 closed 0.8% higher provisionally, at its highest level for three months. Oil and gas stocks jumped 4.7% after Saudi Arabia denied a report that OPEC+ may boost oil output. Mining stocks rose 2.7%.