Macro Roundup (Feb 8)

SHANGHAI, Feb 8 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar fell from one-month highs on Tuesday after U.S. Federal Reserve Chair Jerome Powell doubled down on statements last week that disinflation has started, saying he expects significant declines in inflation this year.

Powell did not revert to a hawkish stance despite last Friday’s blockbuster U.S. non-farm payrolls report, which led investors to believe the Fed is not likely to tighten more than what has been priced in by the market.

The greenback dropped across the board, led by losses versus the yen, Swiss franc, as well as the Australian and New Zealand dollar.

In a question-and-answer session at the Economic Club of Washington, the Fed chief did say the return to the U.S. central bank’s inflation goal of 2% would be a bumpy process, which would need further rate increases.

Powell, however, declined to equate the surprising strength in the job market shown in the January employment report with an expectation that interest rates would need to be higher than Fed officials estimated late last year.

U.S. stock futures ticked down in overnight trading Tuesday.

Dow Jones Industrial Average futures fell by 46 points, or 0.13%. S&P 500 and Nasdaq 100 futures dipped 0.15% and 0.16%, respectively.

Stocks closed near session highs after a volatile bout of trading on Tuesday. The Dow Jones Industrial Average jumped about 265 points, or 0.78%. The S&P 500 rose 1.29%. Meanwhile, the tech-heavy Nasdaq Composite outpaced the other two indexes, gaining 1.9%.

Oil prices climbed more than 3% on Tuesday after the head of the U.S. central bank eased market concerns over interest rate hikes, while recovering demand in China also boosted prices.

Brent crude futures were up $3.10, or 3.83%, to $84.09 a barrel, while U.S. West Texas Intermediate crude futures rose $0.33, or 0.44%, to $77.47 per barrel.

Gold prices were up on Tuesday, tracking a slight pullback in the dollar and as investors digested comments from U.S. Federal Reserve Chair Jerome Powell on the outlook for rate-hike policy.

U.S. gold futures settled up 0.03% at $1,885.4. Spot gold edged lower 0.06% to $1,872.65 per ounce on Tuesday.

Oil prices climbed more than 3% on Tuesday after the head of the U.S. central bank eased market concerns over interest rate hikes, while recovering demand in China also boosted prices.

Brent crude futures were up $3.10, or 3.83%, to $84.09 a barrel, while U.S. West Texas Intermediate crude futures rose $0.33, or 0.44%, to $77.47 per barrel.

European markets nudged fractionally higher Tuesday as investors awaited comments from central bank officials including Fed Chairman Jerome Powell.

The pan-European Stoxx 600 was choppy through the session and provisionally closed up 0.15%. Oil and gas stocks climbed 2.8% as household goods shed 0.9%.