Macro Roundup (Dec 5)

SHANGHAI, Dec 5 —This is a roundup of global macroeconomic news last Friday night and what is expected today.

The dollar dipped on Friday as a Federal Reserve official said rate hikes are likely to slow and as investors took profits from earlier gains after jobs data and wage inflation were surprisingly strong in November and muddied the outlook for how hawkish the U.S. central bank will be.

The greenback initially jumped after data showed that employers added 263,000 jobs in November, well above estimates of 200,000.

Chicago Fed President Charles Evans said that the pace of increases is likely to slow, but added that the U.S. central bank will likely need to raise borrowing costs to a “slightly higher” peak than envisioned in forecasts from September.

Richmond Fed President Thomas Barkin also said the United States is likely in a sustained period in which there will remain a shortage of workers, complicating the Fed’s aim of getting labor demand back into balance.

The dollar index was last down 0.13% on the day against a basket of currencies at 104.49, and the euro gained 0.10% to $1.0533.

U.S. stock futures are little changed on Sunday night as investors await more economic data ahead of the Federal Reserve’s December policy meeting.

Dow Jones Industrial Average futures fell by 35 points, or 0.1%. S&P 500 and Nasdaq 100 futures dipped 0.15% and 0.12%, respectively.

On Friday, the major averages closed little changed after rebounding from earlier losses. The Dow Jones Industrial Average added roughly 35 points, or was 0.1% higher. The S&P 500 declined 0.1%, while the Nasdaq Composite dipped 0.2%. The three indexes notched their second straight positive week.

A strong November jobs report released Friday initially weighed on stocks, but traders shook off those concerns in anticipation of smaller rate hikes from the Fed possibly starting with the Dec. 13 to 14 policy meeting. Investors are expecting a week that could be light on catalysts ahead of that meeting.

Oil futures slipped 1.5% in choppy trading on Friday ahead of a meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) on Sunday and an EU ban on Russian crude on Monday.

Brent crude futures settled down $1.31, a 1.5% drop, at $85.57 per barrel. U.S. West Texas Intermediate (WTI) crude futures fell $1.24, or 1.5%, to $79.98 per barrel.

Both contracts dipped in and out of negative territory, but notched their first weekly gains at around 2.5% and 5%, respectively, after three consecutive weeks of drops.

Gold prices slipped on Friday, retreating from a near-four month high, after robust U.S. jobs data fanned concerns that the Federal Reserve might stick with its aggressive monetary policy tightening.

Spot gold fell 0.4% to $1,794.96 per ounce, after earlier hitting its highest since Aug. 10 at $1,804.46. U.S. gold futures settled down 0.31% at $1,809.6.

European markets closed lower Friday as investors closely monitored news from China over its zero-Covid policy and U.S. non-farm payrolls data.