Macro Roundup (Apr 14)

SHANGHAI, Apr 14 - This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar fell and the euro hit a one-year high against the U.S. currency on Thursday after producer prices fell last month, adding to expectations that the Federal Reserve is nearing the end of its tightening cycle.

The euro reached $1.10470, the highest since April 4, 2022, and was last at $1.1032, up 0.32% on the day.

Other data showed that the number of Americans filing new claims for unemployment benefits increased more than expected last week, a further sign that labour market conditions were loosening up as higher borrowing costs dampen demand in the economy.

Stock futures are slightly lower as investors looked to the start of corporate earnings season while considering what the latest inflation data implies about the economy.

Futures tied to the Dow Industrial Average lost 42 points, or 0.1%. S&P 500 futures were slightly below the flatline, while Nasdaq-100 futures shed 0.1%.

The moves follow a winning day on Wall Street as investors cheered the latest data showing the pace of inflation was slowing. The Nasdaq Composite ended up nearly 2%, while the S&P 500 and Dow finished 1.3% and 1.1% higher, respectively.

The March producer price index, a measure of prices paid by companies, declined 0.5% from the prior month, even as economists polled by Dow Jones expected prices to stay the same. Excluding food and energy, the index shed 0.1% from the prior month, while economists estimated a 0.2% month-to-month increase.

Oil prices edged lower on Thursday, after scaling multi-month high levels in the previous session, weighed by fears of a looming recession in the United States and warnings from the OPEC group about hits to summer oil demand.

Brent crude fell $1.24 cents, or 1.42%, to $86.09 a barrel. U.S. West Texas Intermediate (WTI) slipped $1.10, or 1.32%, to $82.16 a barrel.

Gold surged on Thursday as more weak U.S. economic readings bolstered bets for a pause in interest rate hikes, with prospects of a mild recession also sending investors scurrying for the safe-haven.

Spot gold was up 1.4% at $2,042.50 per ounce by 1:40 p.m. EDT (17:40 GMT), its highest since March 2022, and about $30 shy of its record high hit in 2020. U.S. gold futures settled 1.5% higher at $2,055.30.

European stock markets closed higher on Thursday as investors digested key U.S. inflation data.

The pan-European Stoxx 600 index provisionally ended up 0.44%, its third session of gains since the four-day Easter weekend.