Macro Roundup (Jan 17)

SHANGHAI, Jan 17 —This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar struggled to recover from its decline after last week’s selloff on data showing that U.S consumer prices fell for the first time in more than 2-1/2 years in December.

The euro edged 0.04% higher against the greenback to $1.0838, not far from Friday’s nine-month high of $1.0868.

Sterling rose 0.05% to $1.2240, having similarly touched a one-month peak of $1.22495 on Friday.

Better-than-expected economic data out of Germany and Britain also suggested both countries could narrowly escape a recession for now, lifting sentiment.

Against a basket of currencies, the U.S. dollar index fell 0.13% to 102.13, languishing near Friday’s seven-month low of 101.97.

Stock futures were down slightly Monday night as investors attempted to keep building on early 2023 momentum and looked ahead to more corporate earnings.

Futures tied to the Dow Jones Industrial Average lost 14 points, or just under the flatline. S&P 500 futures dropped 0.1%, while Nasdaq-100 futures slid 0.2%.

All three of the major indexes are up coming off a positive first two weeks of trading in the new year. The Nasdaq Composite is leading the way up 5.9%, as investors bought beat-up technology shares amid rising hopes of an improving landscape for growth stocks. The S&P 500 and Dow have advanced 4.2% and 3.5%, respectively, since the start of the year.

Oil prices dipped in early Asian trade on Monday, but held close to the highest levels since the start of the year on optimism that China’s reopening will lift fuel demand at the world’s top crude importer.

Brent crude fell 36 cents, or 0.4%, to $84.92 a barrel by 0116 GMT while U.S. West Texas Intermediate crude was at $79.65 a barrel, down 21 cents, or 0.3%, amid thin trade during a U.S. public holiday.

oth contracts rose more than 8% last week, the biggest weekly gain since October, after China’s crude imports rose 4% year-on-year in December while Lunar New Year travel brightens the outlook for transportation fuels.

Gold prices steadied after climbing to their highest in nearly nine months on Monday, as a softer dollar and expectations of slower interest rate hikes from the U.S. Federal Reserve added to bullion’s shine.

Spot gold held its ground at $1,918.66 per ounce, as of 0548 GMT. Earlier in the session, prices hit $1,929 per ounce, a peak since late April.

U.S. gold futures rose 0.1% to $1,923.20.

European markets were higher on Monday as investors assessed the growth and inflation outlook in light of recent data alongside the beginning of corporate earnings season.

The pan-European Stoxx 600 closed up 0.5% provisionally, with retail and financial services both up 1.3%, and media stocks up 1.2%.