SHANGHAI, Dec 29 —This is a roundup of global macroeconomic news last night and what is expected today.
The dollar edged higher against its major peers on Wednesday, reaching a more than one-week top versus the yen, buoyed by higher Treasury yields as traders puzzled over the outlook for policy at the world’s biggest central banks.
The U.S. currency ticked 0.13% higher to 133.685 yen in Asian trading, and earlier touched 133.95 for the first time since Dec. 20, when the Bank of Japan sent the pair spiralling lower with an unexpected loosening of the 10-year Japanese government bond yield policy band.
The greenback dropped as low as 130.58 yen that day for the first time since early August as traders speculated about an eventual end of BOJ stimulus.
A summary of opinions from the meeting, released Wednesday, showed policymakers discussed growing prospects the country could see higher wage growth and sustained inflation next year.
The dollar index, which measures the currency against six counterparts including the yen and euro, added 0.07% to 104.28 on Thursday, continuing its consolidation after sliding to the lowest since mid-June at 103.44 on Dec. 14, the day the Federal Reserve slowed interest rate hikes to a half-point pace.
Fed officials including Chair Jerome Powell though have stressed since then that the policy tightening will be prolonged, with a higher terminal rate, fueling worries of a U.S. slowdown.
S&P 500 futures rose slightly on Wednesday night, as investors head into the final trading days of 2022.
Dow Jones Industrial Average futures added 29 points, or 0.09%. S&P 500 and Nasdaq 100 futures climbed 0.14% and 0.23%, respectively.
The action follows a broad sell-off during the regular session Wednesday as recession fears weighed on investor sentiment in a losing week, month and year. The Dow Jones Industrial Average lost 365.85 points, or 1.1%. The S&P 500 fell 1.2%, while the Nasdaq Composite dropped 1.35%.
The major averages are headed toward their worst year since 2008. The Dow has lost 9.5%, while the S&P 500 shed 20.6%. Meanwhile, the Nasdaq is the worst performer, down 34.7% as investors dumped growth stocks.
Oil prices settled lower on Wednesday as traders weighed concerns over a surge in COVID-19 cases in China, the world’s top oil importer, against the chances easing pandemic restrictions in the country will boost fuel demand.
Brent crude futures fell $1.30, or 1.5%, to settle at $83.03 a barrel, while U.S. West Texas Intermediate crude futures settled at $78.62 per barrel, down 91 cents, or 1.1%%.
Gold prices dropped 1% on Wednesday, after reaching a six-month peak in the previous session, as a stronger dollar and higher Treasury yields weighed.
Spot gold fell 0.5% to $1,804.59 per ounce after falling to $1,796 earlier in the session. U.S. gold futures were down 0.6% to $1,812.40.
European markets closed mixed on Wednesday as investors continued to assess the prospect of China’s reopening and the possible headwinds coming down the pike in 2023.
The pan-European Stoxx 600 index reversed initial gains to inch 0.1% below the flatline by the close, with technology shares slumping 0.9% while basic resources stocks rose 0.6%.
