SHANGHAI, Mar 28 - This is a roundup of global macroeconomic news last night and what is expected today.
The US dollar index rose to a five-day high against the Japanese yen on Monday as authorities’ efforts to rein in worries over the global banking system helped soothe investor nerves.
The U.S. currency, however, clung to a narrow range against most major currencies as investors appeared hesitant to place big wagers in either direction as they sought clarity on the fallout from the recent collapse of two U.S. lenders and the rescue of Credit Suisse.
Markets are pricing in around a 55% chance of the Fed standing pat on interest rates in its next meeting in May and anticipate a rate cut as early as July.
Stock futures inched higher in overnight trading after the S&P 500 posted its third positive session in a row and banking sector concerns continued to ease.
Futures tied to the Dow Jones Industrial Average rose 49 points, or 0.15%. Meanwhile, S&P 500 and Nasdaq 100 futures added 0.17% and 0.23%, respectively.
The overnight moves follow a mixed session on Monday. Investors fought to extend last week’s gains, but tech shares came under pressure. The Dow Jones Industrial Average added 194.55 points, or 0.6%, while the S&P 500 gained 0.16%. The Nasdaq Composite dipped 0.47% as tech stocks moved lower.
A slew of positive news reports helped lift sentiment on Wall Street, including First Citizens BancShares’ agreement to buy large parts of Silicon Valley Bank. Further, CNBC reported that deposit flows out of small institutions and into banking behemoths have slowed.
Oil prices rose on Monday after Iraq was forced to halt some of its crude exports from its semi-autonomous Kurdistan region and helped by steps to contain a potential banking crisis that could have hit oil demand.
Brent crude futures were up $3.13, or 4.17%, at $78.12 a barrel. West Texas Intermediate U.S. crude rose $3.63, or 5.24%, to $72.89.
Gold prices fell more than 1% on Monday as worries over a crisis in the banking sector subsided, prompting investors to scale back safe-haven trades in favor of riskier assets like equities and crude oil.
Spot gold dropped 1.02% to $1,957.1274 per ounce. U.S. gold futures settled 1.5% lower at $1,953.80.
European markets closed higher at the start of the new trading week, with cautious optimism returning after a sharp loss in Friday’s session.
The pan-European Stoxx 600 index closed 1.1% higher, with all sectors in positive territory. Auto stocks were up 1.9%, while health care rose 1.9% and banks climbed 1.4%.
