Macro Roundup (Jan 12)

SHANGHAI, Jan 12 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar was little changed on Wednesday versus the euro and other major currencies as traders held off from making big moves ahead of U.S. inflation data on Thursday, which may offer a clearer picture of where interest rates are headed.

The euro hovered near a seven-month high against the greenback, hit on Monday, as traders bet that the U.S. Federal Reserve will not have to raise rates as fast and as high as earlier thought to tame stubbornly high inflation.

The euro was up 0.3% at $1.07675 against the dollar.

While the euro has benefited from improved growth prospects in the euro zone, the lack of inflows to the common currency may be due to ongoing risks tied to natural gas supply constraints, said Isabella Rosenberg, an analyst at Goldman Sachs.

Natural gas prices have fallen to their lowest in almost a year-and-a-half amid a mild winter and healthy inventory levels. But risks persist from Russia’s war in Ukraine, which disrupted supplies last year.

Stock futures were little changed in overnight trading Wednesday as investors awaited a key inflation report to assess the outlook for the Federal Reserve’s rate-hiking campaign.

Futures linked to the Dow Jones Industrial Average inched up 12 points. S&P 500 futures and Nasdaq 100 futures were both flat.

All eyes are on December’s consumer price index reading with the consensus forecast calling for a slight easing in price pressures.

Oil prices rose 3% to a one-week high on Wednesday as hopes for an improved global economic outlook and concern over the impact of sanctions on Russian crude output outweighed a massive surprise build in U.S. crude stocks.

Brent futures rose $2.46, or 3.1%, to $82.56 a barrel. U.S. West Texas Intermediate (WTI) crude rose $2.33, or 3.1%, to $77.45.

Gold prices held steady after touching an eight-month peak on Wednesday as investors positioned themselves ahead of U.S. inflation data that could influence the Federal Reserve’s policy path.

Spot gold was steady at $1,877.51 per ounce. U.S. gold futures settled up 0.1% at $1,878.9.

European markets closed higher as investors geared up for more inflation data this week, with U.S. consumer price data for December due Thursday.

The pan-European Stoxx 600 index provisionally closed up 0.4%, with most sectors and major bourses posting gains. Retail stocks saw the largest uptick, up 2%, while insurance bucked the trend to end the session down 1.1%.