Macro Roundup (Dec 21)

Published: Dec 21, 2022 09:30 (GMT+8)
Futures tied to the Dow Jones Industrial Average added 124 points, or 0.4%. S&P 500 futures rose 0.3%, and Nasdaq 100 futures climbed 0.4%.

SHANGHAI, Dec 21 —This is a roundup of global macroeconomic news last night and what is expected today.

Stock futures were higher on Tuesday evening.

Futures tied to the Dow Jones Industrial Average added 124 points, or 0.4%. S&P 500 futures rose 0.3%, and Nasdaq 100 futures climbed 0.4%.

Investors were digesting earnings from Nike and FedEx that sent both companies higher in after-hours trading.

Nike shares added 12% after the apparel maker beat Wall Street’s expectations for quarterly earnings and revenue. Meanwhile, FedEx gained 3% as the package delivery giant beat consensus estimates on per-share earnings. The company fell short of expectations for revenue, however.

During the regular session, the Dow rose more than 92 points, or nearly 0.3%. The S&P 500 climbed 0.1% and the Nasdaq Composite eked out a slight gain of 0.01%. All three of the major indexes snapped a four-day losing streak, putting a little wind back into hopes for an end-of-year rally.

The modest gains came even after the Bank of Japan moved to widen its cap on the 10-year Japanese government bond yield, leading to a spike in the 10-year U.S. Treasury yield higher that initially rattled traders.

Oil prices ended higher on Tuesday in a volatile session as a worsening outlook for a major U.S. winter storm sparked fears that millions of Americans might curb travel plans during the holiday season.

Brent crude futures settled up 19 cents, or 0.2%, to $79.99 per barrel while U.S. West Texas Intermediate (WTI) crude futures settled up 90 cents at $76.09 per barrel.

Oil prices were buoyed by a softer dollar and a U.S. plan to restock petroleum reserves, but gains were capped by uncertainty over the impact of rising Covid-19 cases China.

Gold prices jumped 1% to above the key $1,800 level on Tuesday as the dollar dropped after the Bank of Japan’s surprise policy tweak, while markets also weighed the outlook for the U.S. Federal Reserve’s interest rate strategy.

Spot gold last rose 1.73% to $1,818.18 per ounce. U.S. gold futures gained 1.69% to $1828.00.

European markets were lower Tuesday as investors assessed a surprise announcement from the Bank of Japan and the interest rate outlook for 2023.

The pan-European Stoxx 600 closed 0.4% lower provisionally after a choppy afternoon, with most sectors and major bourses trading in negative territory. Autos led losses with a 1.5% fall, while a few sectors gained, including banks, which rose 1.7%.

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