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Macro Roundup (May 26)
2022-5-26
This is a roundup of global macroeconomic news last night and what is expected today.
The U.S. dollar rose on Wednesday, holding most of its earlier gains after minutes from the Federal Reserve’s May meeting showed that most participants believed half-percentage-point rate increases would likely be appropriate in June and July.
All participants at the May 3-4 policy meeting backed the Fed’s 50 basis point rate increase this month to combat inflation they agreed had become a key threat to the economy’s performance and was at risk of accelerating without central bank action, the minutes of the session showed.
Treasury yields were little changed after the Fed minutes. U.S. 10-year Treasury yields, which hit 3-1/2-year highs earlier in May, briefly hit six-week lows on Wednesday after data showed new orders for U.S.-made capital goods rose less than expected in April.
The U.S. dollar index, which measures the greenback against a basket of peer currencies, dipped slightly after the Fed minutes and was up 0.285% at 102.04, at 3:00 p.m. ET.
The dollar had fallen to a one-month low on Tuesday after European Central Bank chief Christine Lagarde flagged an end to negative interest rates in the euro zone in the third quarter, giving the euro a boost.
Stock futures were mixed on Wednesday evening as investors digested a disappointing update from Nvidia, an economic bellwether in the technology industry.
Stock futures tied to the Dow Jones Industrial Average rose 12 points, or less than 0.1%. Those for the S&P 500 slipped les than 0.1%, while Nasdaq 100 futures shed 0.2%.
Though first-quarter earnings for the market as a whole have been largely in line with historical trends, there have been dramatic pullbacks for some major stocks after earnings reports as investors look for the impact of inflation and slowing economic growth.
Natural gas surged above $9 per million British thermal units, or MMBtu, on Wednesday, hitting the highest level in more than a decade as dwindling inventories push prices higher.
U.S. prices surged more than 6% at one point to hit a high of $9.399 per MMBtu, the highest since August 2008. The contract later gave back the bulk of those gains, ending the day 1.99% higher at $8.971 per MMBtu.
Still, prices remain elevated in what’s been a blistering rally for natural gas as Russia’s war on Ukraine sends energy markets reeling.
Gold prices dropped Wednesday and were on track to snap a five-session winning streak, weighed by a rebound in the dollar after minutes from the Federal Reserve’s May meeting showed that most participants believed half-percentage-point rate increases would likely be appropriate in June and July.
Spot gold was down 0.7% at $1,853.73 per ounce as of 4:22 p.m.. ET. U.S. gold futures settled down 0.7% at around $1,852.50.
The pan-European Stoxx 600 provisionally closed up by 0.8%. Oil and gas shares climbed 2.1% to lead the gains as most sectors and major bourses entered positive territory.
The higher trade for European stocks came after regional markets retreated Tuesday, tracking negative global sentiment as U.S. markets struggled to maintain a comeback rally following weeks of losses.
The U.S. dollar rose on Wednesday, holding most of its earlier gains after minutes from the Federal Reserve’s May meeting showed that most participants believed half-percentage-point rate increases would likely be appropriate in June and July.
All participants at the May 3-4 policy meeting backed the Fed’s 50 basis point rate increase this month to combat inflation they agreed had become a key threat to the economy’s performance and was at risk of accelerating without central bank action, the minutes of the session showed.
Treasury yields were little changed after the Fed minutes. U.S. 10-year Treasury yields, which hit 3-1/2-year highs earlier in May, briefly hit six-week lows on Wednesday after data showed new orders for U.S.-made capital goods rose less than expected in April.
The U.S. dollar index, which measures the greenback against a basket of peer currencies, dipped slightly after the Fed minutes and was up 0.285% at 102.04, at 3:00 p.m. ET.
The dollar had fallen to a one-month low on Tuesday after European Central Bank chief Christine Lagarde flagged an end to negative interest rates in the euro zone in the third quarter, giving the euro a boost.
Stock futures were mixed on Wednesday evening as investors digested a disappointing update from Nvidia, an economic bellwether in the technology industry.
Stock futures tied to the Dow Jones Industrial Average rose 12 points, or less than 0.1%. Those for the S&P 500 slipped les than 0.1%, while Nasdaq 100 futures shed 0.2%.
Though first-quarter earnings for the market as a whole have been largely in line with historical trends, there have been dramatic pullbacks for some major stocks after earnings reports as investors look for the impact of inflation and slowing economic growth.
Natural gas surged above $9 per million British thermal units, or MMBtu, on Wednesday, hitting the highest level in more than a decade as dwindling inventories push prices higher.
U.S. prices surged more than 6% at one point to hit a high of $9.399 per MMBtu, the highest since August 2008. The contract later gave back the bulk of those gains, ending the day 1.99% higher at $8.971 per MMBtu.
Still, prices remain elevated in what’s been a blistering rally for natural gas as Russia’s war on Ukraine sends energy markets reeling.
Gold prices dropped Wednesday and were on track to snap a five-session winning streak, weighed by a rebound in the dollar after minutes from the Federal Reserve’s May meeting showed that most participants believed half-percentage-point rate increases would likely be appropriate in June and July.
Spot gold was down 0.7% at $1,853.73 per ounce as of 4:22 p.m.. ET. U.S. gold futures settled down 0.7% at around $1,852.50.
The pan-European Stoxx 600 provisionally closed up by 0.8%. Oil and gas shares climbed 2.1% to lead the gains as most sectors and major bourses entered positive territory.
The higher trade for European stocks came after regional markets retreated Tuesday, tracking negative global sentiment as U.S. markets struggled to maintain a comeback rally following weeks of losses.
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