SHANGHAI, Feb 9 —This is a roundup of global macroeconomic news last night and what is expected today.
The dollar was little changed to marginally higher on Wednesday as investors paused selling the greenback a day after Federal Reserve Chair Jerome Powell did not significantly change his interest rate outlook despite a strong U.S. jobs report last week.
The greenback’s outlook, however, remained tilted to the downside as the Fed nears the end of its tightening cycle and the markets price in rate cuts by the end of the year, analysts said.
In a question-and-answer session before the Economic Club of Washington on Tuesday, Powell said interest rates might need to move higher than expected if the U.S. economy remains strong, but reiterated he felt a process of “disinflation” is underway.
The greenback slipped as Powell spoke.
Stock futures rose slightly Wednesday night as investors took in more big corporate earnings reports.
Futures tied to the Dow Jones Industrial Average rose 63 points, or 0.1%. S&P 500 futures added 0.1%, and Nasdaq 100 futures gained 0.2%.
Investors have been watching earnings season closely for insight on how companies have fared amid high inflation and clues on how they’re managing going forward.
In the regular trading session, the Dow fell by 207 points, or 0.6%. The S&P 500 slid 1.1%, and the Nasdaq Composite dropped 1.7%.
The next phase of the 2023 rally could depend on the Federal Reserve’s next steps on policy. Earlier this week, Fed Chair Jerome Powell said inflation is easing, but rates could still rise.
Oil rose for a third straight day on Wednesday as investors felt more comfortable with risk a day after the Federal Reserve chair’s remarks eased concerns about future interest rate hikes.
Comments from U.S. Federal Reserve Chair Jerome Powell on Tuesday were seen as less hawkish than feared, boosting risk appetite and weighing on the dollar. A weaker U.S. currency makes dollar-denominated oil cheaper for buyers holding other currencies.
Gold prices edged back up in a choppy session on Wednesday, as investors looked forward to more economic data to gauge the U.S. Federal Reserve’s rate-hike strategy.
Spot gold was up 0.1% at $1,875.10 per ounce by 3:19 p.m. ET. U.S. gold futures rose 0.3% to settle at $1,890.70.
European markets were higher on Wednesday, as investors digested the latest comments from U.S. Federal Reserve Chair Jerome Powell alongside a mix of corporate earnings.
The wider European Stoxx 600 index also trimmed its earlier gains to provisionally finish the session up 0.3%. Oil and gas stocks led increases, up by 1.6%.
