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Macro Roundup (Dec 2)
Dec 2, 2022 09:30CST
Source:SMM
The U.S. dollar dipped to 16-week lows against a basket of major currencies on Thursday after data showed that U.S. consumer spending increased solidly in October, while inflation moderated, adding to expectations that the Federal Reserve is closer to reaching a peak in interest rates.

SHANGHAI, Dec 2 —This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar dipped to 16-week lows against a basket of major currencies on Thursday after data showed that U.S. consumer spending increased solidly in October, while inflation moderated, adding to expectations that the Federal Reserve is closer to reaching a peak in interest rates.

The move comes after Fed Chairman Jerome Powell on Wednesday said that it was time to slow rate hikes, noting that “slowing down at this point is a good way to balance the risks.”

Investors took comfort from the comments, even as Powell also said that rates would still go higher and that controlling inflation “will require holding policy at a restrictive level for some time.”

Thursday’s data showed that consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 0.8% after an unrevised 0.6% increase in September.

The personal consumption expenditures (PCE) price index rose 0.3 after advancing by the same margin in September. In the 12 months through October, the PCE price

S&P 500 futures were slightly lower Thursday night as investors looked ahead to the November jobs report.

Futures tied to the benchmark stock index dipped 0.15%. Dow Jones Industrial Average futures were lower by 0.15% and Nasdaq 100 futures fell 0.25%.

Shares of tech companies were on the move in after-hours trading following quarterly results. Asana, Zscaler and Marvell all slipped.

In regular trading, the Dow closed lower by nearly 195 points, while the S&P 500 inched down 0.09%. The tech-heavy Nasdaq Composite gained 0.13%.

Oil prices settled largely narrowly mixed on Thursday, retreating from an early rally built on dollar weakness and hopes for improved fuel demand in China after COVID-19 curbs were eased in two major Chinese cities.

Brent Crude futures settled 9 cents lower at $86.88 a barrel. U.S. West Texas Intermediate crude futures settled at $81.22 a barrel, up 67 cents or 0.8%.

Gold prices jumped more than 2% on Thursday to climb above the key $1,800 per ounce pivot, as the dollar weakened on prospects of slower rate hikes from the Federal Reserve and signs of cooling U.S. inflation.

Spot gold rose 1.9% to $1,801.79 per ounce, reaching $1,803.94 earlier in the session, while U.S. gold futures gained 3.2% to $1,816.

Macro

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