Macro Roundup (May 11)

SHANGHAI, May 11 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar rose on Tuesday, after fluctuating between modest gains and declines earlier in the session as it held near a two-decade high ahead of a key reading on inflation that could provide clues on the Federal Reserve’s monetary policy path.

Investors will closely eye the April consumer price index reading on Wednesday for any signs inflation may be starting to cool, with expectations calling for a 8.1% annual increase compared to the 8.5% rise recorded in March.

The dollar index rose 0.203% at 103.900, with the euro down 0.24% to $1.053.

The greenback has climbed nearly 9% this year to reach 20-year highs as investors have gravitated towards the safe haven on concerns about the Fed’s ability to tamp down inflation without causing a recession, along with worries about slowing growth arising from the war in Ukraine and rising COVID-19 cases in China.

Stock futures were little changed in overnight trading Tuesday ahead of a key inflation reading.

Futures on the Dow Jones Industrial Average shed about 15 points. S&P 500 futures were marginally lower and Nasdaq 100 futures were near flat.

The moves come after the Dow fell for a fourth consecutive day Tuesday in a volatile trading session alternating between gains and losses. The S&P 500 ticked up 0.25% and the Nasdaq Composite gained about 1%.

Mega-cap technology names, which have struggled in recent weeks, led gains Tuesday. Microsoft and Apple each rose more than 1%.

U.S. crude oil price settled below $100 a barrel on Tuesday to its lowest level in two weeks as the demand outlook was pressured by coronavirus lockdowns in China and growing recession risks, while a strong dollar made crude more expensive for buyers using other currencies.

U.S. West Texas Intermediate crude settled down $3.33, or 3.2%, to $100.11 a barrel, while Brent crude was down $3.48, or 3.28%, at $102.46 a barrel. Both benchmarks were down for a second straight day and fell by more than $4 a barrel earlier on Tuesday.

Wall Street’s main indexes also turned lower in volatile trading on concerns over aggressive monetary policy tightening and slowing economic growth.

Gold prices reversed course and fell on Tuesday as the dollar resumed strengthening, while investors shifted their attention to U.S. inflation data for cues on the Federal Reserve’s monetary policy strategy.

Spot gold was down 0.5% at $1,844.95 per ounce by 1:52 p.m. ET, after rising as much as 0.6% earlier in the session. U.S. gold futures settled down 1% at $1,841.00.

The pan-European Stoxx 600 closed higher by 0.8%, with financial services climbing 1.6% to lead gains as most sectors and major bourses finished in positive territory.

The positive trade in Europe comes after regional markets fell to two-month lows on Monday as global investors fled risk assets en masse owing to fears over inflation.