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Macro Roundup (Jan 30)
Jan 30, 2023 09:30CST
Source:SMM
The dollar clung to modest gains against the euro on Friday after data showed falling U.S. consumer spending and cooling inflation, and as investors awaited a slew of central bank meetings next week.

SHANGHAI, Jan 30 —This is a roundup of global macroeconomic news last Friday night and what is expected today.

The dollar clung to modest gains against the euro on Friday after data showed falling U.S. consumer spending and cooling inflation, and as investors awaited a slew of central bank meetings next week.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, dropped 0.2% last month, the Commerce Department said on Friday. Data for November was revised lower to show spending slipping 0.1% instead of gaining 0.1% as previously reported. Economists polled by Reuters had forecast consumer spending dipping 0.1%.

The Commerce Department reported the Federal Reserve’s preferred gauge for inflation, the personal consumption expenditures (PCE) price index, rose 0.1% last month after a similar rise in November.

Traders of futures tied to the Fed’s policy rate kept bets on Friday that the U.S. central bank will raise interest rates just once more beyond next week’s widely expected quarter-point hike before stopping. The current target range is 4.25% to 4.5%.

The euro was 0.17% lower at $1.08725, but not far from the nine-month high of $1.09295 touched on Monday. For the week, the common currency was up about 0.2%.

Stock futures were modestly lower on Sunday evening as investors geared up for a week of key corporate earnings and a possible interest rate hike from the Federal Reserve.

Futures tied to the Dow Jones Industrial Average slipped 56 points, or about 0.2%. S&P 500 futures ticked down 0.2%, and Nasdaq 100 futures edged lower by 0.2%.

Wall Street is coming off a winning week as the stock market’s January rally continued. The Nasdaq Composite gained 4.3% for the week, while the S&P 500 and Dow added 2.5% and 1.8%, respectively.

The Federal Open Market Committee meets on Tuesday and Wednesday, when the Fed is expected to hike rates by one-quarter of a percentage point. Investors will be looking for clues about how much higher the central bank will take rates in the fight against inflation.

Oil prices settled lower on Friday, making their weekly finish flat to lower, as indications of strong Russian oil supply offset better-than-expected U.S. economic growth data, strong middle distillate refining margins and hopes of a rapid recovery in Chinese demand.

Brent futures settled down 81 cents, or 0.9%, at $86.66 per barrel, up just 3 cents from last week’s settlement. U.S. crude fell $1.33, or 1.6 %, to settle at $79.68, 2% lower on the week.

Gold steadied on Friday with gains capped by a stronger dollar, but the metal was still set for a sixth straight weekly rise ahead of the U.S. Federal Reserve’s rate decision next week.

Spot gold edged up 0.1% to $1,931.61 per ounce, yet gave up gains earlier in the session after data showed U.S. consumer spending fell in December, even as the core personal consumer expenditure index gained 0.3% month-on-month.

European markets closed marginally higher Friday after U.S. economic data came in stronger than expected and with a slew of rate hike decisions due next week.

The pan-European Stoxx 600 index closed 0.3% higher. Autos gained 1.1% as mining and food and beverage stocks fell 0.6%.

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