SHANGHAI, Mar 30 - This is a roundup of global macroeconomic news last night and what is expected today.
The U.S. dollar edged higher against most major peers on Wednesday, pausing its recent declines, and gained sharply against the yen, which was volatile as the end of the Japanese fiscal year approaches.
The yen rallied despite traditionally also being a safe haven, with analysts pointing to a pickup in flows ahead of the end of Japan’s fiscal year on Friday.
Global financial markets were roiled in recent weeks as investors balked at the collapse of two U.S. lenders and the rescue of Credit Suisse, with the dollar coming under pressure as worries grew that the market turmoil may leave the Federal Reserve unable to persist with its inflation-fighting interest rate hikes.
Worries, however, have faded this week as investors took solace from First Citizens BancShares’ agreement to buy all of failed lender Silicon Valley Bank’s deposits and loans, and the fact that no further cracks have emerged in global banking in recent sessions.
U.S. stock futures were little changed Wednesday night.
Futures tied to the Dow Jones Industrial Average lost 14 points, trading near flat. S&P 500 futures and Nasdaq-100 futures were also near their flatlines.
The moves come amid a hectic week for stocks. The three major indexes ended Wednesday higher, with the Nasdaq Composite leading the way with a roughly 1.8% jump. The S&P 500 and Dow followed at 1.4% and 1% higher, respectively. Those gains mark a reversal from Tuesday, when all three indexes ended the session lower.
Big Tech stocks contributed to Wednesday’s advance. Regional banks, closely followed since Silicon Valley Bank’s collapse earlier this month, also finished the session higher.
Oil ticked down on Wednesday in choppy trading as investors looked to pocket profits from two straight days of gains, and as markets debated supply tightness.
Brent crude eased 32 cents, or 0.4%, to $78.33 a barrel, while West Texas Intermediate U.S. crude fell 11 cents, or 0.1%, to $73.09.
Gold prices slipped on Wednesday as upbeat equities and a stronger dollar weighed, but declines in safe-haven bullion have been fairly contained so far, signaling lingering worries about the banking sector.
Spot gold was trading 0.5% lower at $1,964.41 per ounce. U.S. gold futures slipped 0.4% to $1,965.50.
European stock markets closed higher on Wednesday as investor doubts over the health of the banking sector continued to wane.
The pan-European Stoxx 600 index closed up 1.3%, with banks up 1.9%. Tech stocks reversed Tuesday’s decline with a 2.7% gain while the financial services sector was up 1.8%.
