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Macro Roundup (Nov 24)
Nov 24, 2022 09:30CST
Source:SMM
The U.S. dollar fell across the board on Wednesday, after minutes from the Federal Reserve’s November meeting showed that most policymakers at the central bank agreed it would soon be appropriate to slow the pace of interest rate hikes.

SHANGHAI, Nov 24 —This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar fell across the board on Wednesday, after minutes from the Federal Reserve’s November meeting showed that most policymakers at the central bank agreed it would soon be appropriate to slow the pace of interest rate hikes.

The readout of the Nov. 1-2 meeting, at which the Fed raised its key rate by three-quarters of a percent for the fourth straight time in an effort to combat decades-high inflation, showed officials were largely satisfied they could stop front-loading the rate increases and move in smaller steps.

The minutes also showed an emerging debate within the Fed over the risks the rapid policy tightening could pose to economic growth and financial stability, even as policymakers acknowledged there had been little demonstrable progress on inflation and that rates still needed to rise.

The euro was up 0.9% against the dollar at $1.0397, on pace for a second straight session of gains.

Data on Wednesday showed U.S. business activity contracted for a fifth straight month in November, with a measure of new orders dropping to its lowest level in 2-1/2 years as higher interest rates slowed demand.

Other data showed the number of Americans filing new claims for unemployment benefits increased more than expected last week, even though labor market conditions remain tight.

U.S. stocks closed higher Wednesday in a choppy session as meeting minutes from the Federal Reserve showed that the central bank is looking to hand out smaller rate hikes in the coming months as inflation cools off.

The Dow Jones Industrial Average rose 95.96 points, or 0.28%, to 34,194.06. The S&P 500 gained 0.59% to close at 4,027.26, and the Nasdaq Composite increased 0.99% to 11,285.32.

Oil prices fell Wednesday, continuing a streak of volatile trading, as the Group of Seven (G7) nations considered a price cap on Russian oil above the current market level and as gasoline inventories in the United States built by more than analysts’ expected.

Brent futures for January delivery fell $3.57, or 4%, to settle at $84.79 a barrel. U.S. crude fell $3.50, or 4.3%, to $77.45 per barrel. In early trade, both contracts had risen by over $1 a barrel.

Gold prices extended gains on Wednesday as minutes from the U.S. Federal Reserve’s November policy meeting showed a “substantial majority” of members opting to slow down rate hikes.

Spot gold rose 0.6% to $1,750.38 per ounce, while U.S. gold futures settled 0.6% higher at $1,750.90.

The pan-European Stoxx 600 index provisionally closed up 0.7%, extending its gains later into the session.

Macro

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