SHANGHAI, Feb 13 —This is a roundup of global macroeconomic news last Friday night and what is expected today.
The dollar was on the back foot on Friday after an overnight slide as investors tread with caution ahead of U.S. inflation data next week, with worries over an economic slowdown and the pace of the Federal Reserve’s rate hikes hitting sentiment.
The dollar index, which measures the U.S. currency against six major peers, was at 103.21, having dropped to as low as 102.63 in the previous session. The index is set to end the week with a small gain, its second straight positive week and a run it has not had since October.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits increased more than expected last week, but remained at levels consistent with a tight labor market.
The euro was down 0.07% to $1.0729., while the sterling was last trading at $1.2114, off 0.07% on the day.
Russia will cut oil output by 500,000 barrels per day in March, Deputy Prime Minister Alexander Novak said on Friday, following Western bans on Moscow’s crude and oil products implemented in the past few months.
The announced production decline amounts to roughly 5% of Russia’s latest crude oil output, which Paris-based watchdog the International Energy Agency estimated was down at 9.77 million barrels per day in December.
The Brent contract for April delivery rose 2.24% to settle at $86.39 a barrel, having risen more than 8% for the week. U.S. West Texas Intermediate crude futures rose 2.13% to settle $79.72 a barrel, and rose 8.63% for the week for to notch the best week since October.
Gold inched higher on Friday while markets awaited next week’s U.S. inflation data that could influence the Federal Reserve’s monetary policy trajectory.
Spot gold was up 0.2% to $1,864.10 per ounce. U.S. gold futures for February delivery settled 0.2% lower at $1,874.50 per ounce.
Investors await U.S. consumer price data due on Feb. 14. While concerns abound of a global recession, a strong rally in world markets suggests optimism is returning, which could ease the Fed’s rate hike cycle.
European markets closed lower Friday as investors assess the economic outlook and the potential for further monetary policy tightening from the U.S. Federal Reserve.
The pan-European Stoxx 600 index finished trading down 1%. Most sectors and major bourses closed in the red, with travel and leisure stocks leading losses, down by 3.8%. Oil and gas stocks bucked the trend with a 2.3% uptick, while telecoms stocks were 0.2% higher.
