SHANGHAI, Mar 9 - This is a roundup of global macroeconomic news last night and what is expected today.
The U.S. dollar dipped modestly from three-month highs reached earlier on Wednesday as investors adjusted for the prospect of higher rates for longer after Federal Reserve Chairman Jerome Powell on Tuesday surprised markets with a more hawkish rate outlook.
Powell said that the Fed will likely need to raise interest rates more than expected in response to recent strong data and is prepared to move in larger steps if the "totality" of incoming information suggests tougher measures are needed to control inflation.
Investors are now focused on February jobs data due on Friday for confirmation that continued strong jobs growth supports more rate increases. The dollar has jumped since data on Feb. 3 showed that employers added 517,000 jobs in January.
U.S. stock futures were flat on Wednesday night as traders processed fresh job market data and comments from Federal Reserve Chairman Jerome Powell.
Dow Jones Industrial Average futures fell by 6 points, or 0.02%. S&P 500 futures and Nasdaq 100 futures dipped by 0.01% and 0.03%, respectively.
These mixed results came after new numbers on the job market led investors to believe that higher rate hikes are more likely. Stronger-than-expected private payrolls numbers for February reaffirmed the strength of the economy. Powell reiterated his warning message to lawmakers that the central bank may raise interest rates higher than previously anticipated. However, he emphasized that no decision has been made yet regarding the March meeting.
Oil prices fell on Wednesday as fears that more aggressive U.S. interest rate hikes would pressure economic growth and oil demand outweighed a larger-than-expected draw in U.S. crude stocks.
Brent crude futures were down $74 cents, or 0.9%, to $82.55 per barrel. U.S. West Texas Intermediate (WTI) crude futures slipped 99 cents, or 1.3%, to $76.59 a barrel.
Both Brent and WTI fell by more than 3% on Tuesday after comments by U.S. Federal Reserve Chair Jerome Powell that the central bank would likely need to raise interest rates more than expected in response to recent strong data.
Gold regained some ground on Wednesday after shedding nearly 2% in the previous session as the dollar's rally cooled, but any further advance is likely to be capped with Federal Reserve Chair Jerome Powell signalling more rate hikes.
Spot gold was up 0.3% at $1,819.57 per ounce, after hitting its lowest since Feb. 28 at $1,809.27. U.S. gold futures firmed 0.2% to $1,823.50.
European markets closed slightly higher Wednesday as U.S. Federal Reserve Chairman Jerome Powell indicated interest rates may need to go higher for longer.
The pan-European Stoxx 600 index provisionally closed up 0.12%, with sectors and major bourses pointing in opposite directions. Healthcare stocks led losses, down 0.65%, while banking stocks led increases with a 1.2% rise.