SHANGHAI, Feb 27 —This is a roundup of global macroeconomic news last Friday night and what is expected today.
The dollar climbed to seven-week peaks on Friday, after data showed U.S. inflation accelerated while consumer spending rebounded last month, reinforcing expectations that the Federal Reserve may need to hike interest rates a few more times this year to curb the surge in prices.
Against the yen, the dollar hit a two-month high, while rising to its strongest level in seven weeks versus the Swiss franc following the data.
The personal consumption expenditures (PCE) price index, tracked by the Fed for monetary policy rose 0.6% last month after gaining 0.2% in December. In the 12 months through January, the PCE price index accelerated 5.4% after rising 5.3% in December.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 1.8% last month, according to the Commerce Department. Data for December was revised higher to show spending dipping 0.1% instead falling 0.2% as previously reported.
U.S. equity futures were little changed Sunday evening after the major averages posted their biggest weekly losses of the year and ahead of another big week in retail earnings.
Futures tied to the Dow Jones Industrial Average slipped 16 points, or 0.04%. S&P 500 futures eased 0.01% and Nasdaq 100 futures dipped slightly below the flat line
The major averages Friday ended the day lower and posted their biggest weekly declines for 2023. The Dow finished lower by 3%, its fourth down week in a row. The S&P 500 lost 2.7% and the Nasdaq Composite fell 3.3% for the week.
Stocks sank Friday and Treasury yields jumped following a bigger-than-expected increase in the latest reading for personal consumption expenditures, the Federal Reserve’s preferred inflation gauge.
Oil edged higher in volatile trade on Friday, and was flat on the week, with prices supported by the prospect of lower Russian exports but pressured by rising inventories in the United States and concerns over global economic activity.
Brent crude futures settled at $83.16 a barrel, up 95 cents, or 1.2%. West Texas Intermediate U.S. crude futures (WTI) settled at $76.32 a barrel, rising 93 cents, or 1.2%. Earlier, both fell by more than $1 a barrel.
The benchmarks were little changed on the week.
Gold prices dropped to their lowest in eight weeks on Friday, pushed down by a stronger dollar and bond yields as the market braced for more interest rate hikes by the U.S. Federal Reserve in the coming months.
Spot gold was last down 0.62% at $1,811.30 per ounce. U.S. gold futures dipped 0.48% to $1,818.10.
European markets moved from gains to losses Friday, as investors chewed over data releases and more company earnings.
The pan-European Stoxx 600 index closed down 1%. Travel and leisure stocks led losses, falling 3%, while mining stocks slipped 2.8%, as all sectors and major bourses ended the day in the red.
