SHANGHAI, Feb 6 —This is a roundup of global macroeconomic news last Friday night and what is expected today.
The dollar jumped on Friday after data showed that U.S. employers added significantly more jobs in January than economists expected, potentially giving the Federal Reserve more leeway to keep hiking interest rates.
The Labor Department’s closely watched employment report showed that nonfarm payrolls surged by 517,000 jobs last month. The department revised December data higher to show 260,000 jobs added instead of the previously reported 223,000.
Average hourly earnings rose 0.3% after gaining 0.4% in December. That lowered the year-on-year increase in wages to 4.4% from 4.8% in December. Economists polled by Reuters had forecast a gain of 185,000 jobs and a 4.3% year-on-year jump in wages.
The dollar was last up 1.2% at 103 on the day against a basket of currencies, the highest since Jan. 12 and it is on track for its best day since Sept. 23.
U.S. stock futures were lower to start trading for the new week as investors awaited more earnings and an important speech from Federal Reserve Chairman Jerome Powell.
Investors were also taking some profits after the stock market’s hot start to the year. The S&P 500 is up more than 7% for 2023. The Nasdaq Composite is up the last five weeks in a row.
Dow Jones Industrial average futures lost 69 points, or 0.2%. S&P 500 futures were lower by 0.3% and Nasdaq-100 futures fell by 0.3%.
Markets will likely be on edge ahead of a speech by Federal Reserve Chairman Jerome Powell Tuesday before the Economic Club of Washington. Powell’s comments on disinflation caused investors to bid shares higher last week and overlook another rate hike out of the central bank. There is very little economic data due on Monday.
Oil prices fell on Friday in a volatile session, after strong U.S. jobs data raised concerns about higher interest rates and as investors sought more clarity on the imminent EU embargo on Russian refined products.
Brent crude futures fell $2.43, or 3%, to $79.74 a barrel, after rising to a session high of $84.20. U.S. West Texas Intermediate (WTI) crude futures were down $2.66, or 3.4%, at $73.22, having earlier risen to $78.00 per barrel.
Gold prices dropped on Friday to more than a three-week low after stronger-than-expected U.S. jobs data raised fears that the Federal Reserve could keep hiking interest rates.
Spot gold was down 2.5% to $1,864.79 per ounce. Bullion is on track for its biggest weekly fall since early October.
U.S. gold futures fell 2.7% to $1,878.10.
European markets closed higher Friday as investors digested key central bank decisions, economic data and corporate earnings.
The pan-European Stoxx 600 index closed 0.3% higher. The U.K.’s FTSE 100 index hit a record high after the pound fell following U.S. jobs data.
