SHANGHAI, Dec 26 —This is a roundup of global macroeconomic news last Friday night and what is expected today.
The dollar was on the front foot on Friday, as solid U.S. economic data reinforced the need for the Federal Reserve to stay on its aggressive monetary policy tightening path and further raised the odds of higher-for-longer rates.
The greenback rose broadly overnight, though was hobbled against the Japanese yen, which has continued to draw solid demand after the Bank of Japan’s surprise policy tweak earlier in the week.
Sterling was just a touch higher at $1.2038 having slumped to a three-week low of $1.1993 overnight.
The euro edged up 0.01% to $1.0601, with the single currency under broad pressure recently due to a combination of weak eurozone growth, the Ukraine war and the Fed’s hawkish policy path.
The number of Americans filing new claims for unemployment benefits increased less than expected last week, pointing to a still-tight labour market, data released on Thursday showed.
A second report also on the same day confirmed that the U.S. economy rebounded in the third quarter after contracting in the first half of the year, and at a pace faster than previously estimated.
The S&P 500 and Nasdaq Composite rose Friday, but still posted a weekly loss as recession fears continue to batter investor sentiment.
The S&P 500 rose 0.6% to 3,844.82, while the and Nasdaq Composite added 0.2% to close at 10,497.86. The Dow Jones Industrial Average closed 176.44 points higher, or 0.5%, to 33,203.93.
The major indexes oscillated earlier in the session after the core personal consumption expenditures price index, the Federal Reserve’s preferred gauge of inflation, came in slightly hotter than economists expected on a year-over-year basis, indicating that inflation is sticking despite the Fed’s efforts to fight it.
Oil prices rose by $2 per barrel on Friday after Moscow said it could cut crude output in response to the G7 price cap on Russian exports, putting the market on track for a second week of gains.
Brent crude was up by $2.22, or 2.7%, to $83.20 a barrel, while U.S. West Texas Intermediate (WTI) crude was at $79.43 a barrel, up $1.93, or 2.49%.
Gold prices eked out gains on Friday ahead of a long holiday weekend as investors awaited U.S. inflation data due later in the day that could offer some clues to the Federal Reserve rate-hike path.
Spot gold rose 0.2% to $1,796.61 per ounce by 7:50 a.m. ET. U.S. gold futures gained 0.53% to $1,804.8.
European markets ended the week flat as hopes of a Santa Claus rally faded.
The pan-European Stoxx 600 closed flat, the Dax was up 0.2% while the Cac 40 ended 0.2% lower. The U.K.’s FTSE 100 finished trading at lunchtime, closing almost flat, up just 0.05%.
