SHANGHAI, Apr 4 - This is a roundup of global macroeconomic news last night and what is expected today.
The U.S. dollar dropped on Monday, surrendering earlier gains following the announcement of unexpected oil output cuts from OPEC+, after data showed the U.S. economy continued to slow with the decline in manufacturing and construction spending.
The euro was last up 0.58% at $1.0902, after touching a one-week low of $1.0788 earlier in the session.
Monday’s economic reports showed U.S. manufacturing activity in March slumped to its lowest level in nearly three years as new orders continued to contract. The Institute for Supply Management (ISM) said its manufacturing PMI fell to 46.3 last month, the lowest since May 2020, from 47.7 in February.
Data on Monday added to the narrative that the Federal Reserve is near the end of its rate-hike cycle.
Stock futures were flat Monday evening as investors weighed a spike in oil prices that led the S&P 500 higher to start the new trading month.
Futures tied to the Dow Jones Industrial Average inched down by 30 points or 0.09%. S&P 500 futures slipped by 0.08%, and Nasdaq 100 futures dipped by 0.14%.
In regular trading the Dow rose 327 points, or 0.98%, and the S&P 500 added 0.37%. Both posted a fourth straight day of gains. The Nasdaq Composite slid 0.27%.
Energy stocks led the way after OPEC+ announced it was slashing output by 1.16 million barrels of oil per day. On Monday, oil prices soared, and West Texas Intermediate crude notched its biggest daily gain in nearly a year. The Energy Select Sector SPDR fund (XLE), which tracks the S&P 500 energy sector, popped more than 4%.
On Tuesday investors will get the latest number from the monthly Job Openings and Labour Turnover Survey, or JOLTS, at 10 a.m. ET.
Oil prices notched their biggest gain in nearly a year after OPEC+ announced it was slashing output by 1.16 million barrels per day.
Brent crude futures settled higher by 6.31%, at $84.93 a barrel. The commodity had its best daily performance since March 21, 2022, when it gained 7.12%. West Texas Intermediate crude settled higher by 6.28%, at $80.42 a barrel. It was the biggest daily gain for WTI since April 12, 2022, when it rose 6.69%.
Gold rallied 1% on Monday as the dollar’s retreat burnished bullion’s appeal as a safe-haven after a surprise output cut by OPEC+ rekindled fears of prolonged inflation and triggered uncertainty about the central bank response.
Spot gold last gained 0.83% to $1,984.29 per ounce. U.S. gold futures settled 0.7% higher at $2,000.40.
European stock markets closed slightly lower on Monday, with oil markets in focus after a surprise production cut by the OPEC+ alliance.
The pan-European Stoxx 600 index provisionally ended down 0.1% after trading flat through the afternoon.
