Macro Roundup (Feb 16)

SHANGHAI, Feb 16 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar climbed to a six-week peak against a currency basket after the release of hotter-than-expected U.S. retail sales data on Wednesday, bolstering investors’ expectations that the Federal Reserve would keep monetary policy tight for some time to fight stubbornly high inflation.

The greenback also ascended to a fresh six-week peak versus the yen.

Data showed that U.S. retail sales surged 3.0% last month, increasing by the most in nearly two years. The numbers for December were unrevised to show sales dropping 1.1%. Economists polled by Reuters had forecast sales would increase 1.8%, with estimates ranging from 0.5% to 3.0%.

On Tuesday, the U.S. government reported that consumer prices accelerated on a monthly basis in January, rising 0.5%, due in part to higher rental and food costs. The gain matched economists’ expectations in a Reuters poll and was well above the 0.1% month-on-month rise in December. Year-on-year prices rose 6.4%, down from 6.5% in December but above economists’ expectations of a 6.2% gain.

S&P 500 futures were flat on Wednesday night after strong retail sales data suggested a resilient U.S. economy.

S&P 500 futures climbed 0.09%, while futures linked to the Dow Jones Industrial Average inched up by 4 points, or 0.01%. Nasdaq 100 futures rose 0.22%.

Stocks closed slightly higher during the regular session Wednesday, despite falling earlier in the day after a stronger-than-expected January retail sales report suggested the Federal Reserve may have further to go in its efforts to tame inflation. The Dow Jones Industrial Average rose 38.78 points, or 0.11%, and the S&P 500 climbed 0.28%. Meanwhile, the Nasdaq Composite notched its third straight day of gains, rising 0.92%.

Oil futures were flat to lower on Wednesday as the U.S. dollar strengthened and investors worried that rising interest rates would slow the economy and cut fuel demand.

Oil’s losses were limited as the market discounted a big build in U.S. crude stocks due to a data adjustment and as the

International Energy Agency (IEA) forecast higher global oil demand growth.

Brent crude slid 20 cents, or 0.2%, to $85.38 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 47 cents, or 0.6%, to $78.59.

Gold prices dropped to their lowest in over a month on Wednesday, weighed down by a stronger dollar as better-than-expected U.S. economic data raised worries the Federal Reserve could hike interest rates further.

Spot gold was last down 0.02%% to $1,835.81 per ounce. U.S. gold futures futures settled 1.1% lower at $1,845.30.

European markets bucked a global trend to end the Wednesday session higher.

The blue-chip Stoxx 600 index reversed the morning losses and provisionally closed up 0.53%, with most sectors higher. Construction stocks led gains, up by 1.8%. European banking stocks lost 0.6% after Barclays announced a 19% slide in annual net profit.