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Macro Roundup (Apr 28)
2023-4-28
This is a roundup of global macroeconomic news last night and what is expected today.
The U.S. dollar rose on Thursday as weaker-than-expected U.S. economic growth in the first quarter is not likely to deter the Federal Reserve from raising interest rates next week.
The advance estimate of first-quarter gross domestic product showed a 1.1% annualized rate during the period. The economy grew at a 2.6% pace in the fourth quarter. Economists polled by Reuters had forecast GDP rising at a 2.0% rate.
However, investors focused on the quarterly inflation number within the GDP report. Core personal consumption expenditure prices rose 4.9% in the first three months of the year, higher than the consensus figure of 4.7% and up from the fourth quarter figure.
Markets have priced in a 90% probability of a 25 basis-point rate increase at the May policy meeting, with a pause factored in after that.
U.S. stock futures fell slightly on Thursday night as investors digested the latest round of corporate earnings, including results from Amazon.
Dow Jones Industrial Average futures fell by 24 points, or 0.07%. S&P 500 and Nasdaq 100 futures slipped 0.12% and 0.24%, respectively.
Investors are coming off a strong trading session for the major averages, with the Dow Jones Industrial Average and S&P 500 notching their best day since January. Meanwhile, the Nasdaq Composite jumped 2%, posting its best day since March.
Those gains come after a better-than-expected report from Meta fueled a rally in tech stocks. Investors appeared to shake off light GDP data that could signal the Federal Reserve’s rate-hiking campaign may soon come to an end.
On the economic front, traders will watch for the latest personal income and spending data, due out Friday before the open. Economists polled by Dow Jones are expecting core prices to have risen 0.3% in March from the prior month. That’s in line with the prior reading.
Oil prices steadied on Thursday, paring losses from the previous session, after a top Russian official said global oil markets were balanced.
Brent crude futures settled up 60 cents at $78.29 a barrel, while West Texas Intermediate crude settled up 51 cents at $74.81 a barrel.
Gold reversed course and fell on Thursday, as the dollar gained after weaker U.S. economic readings failed to upend expectations of another interest rate hike by the Federal Reserve next week amid stubborn inflation.
Spot gold was down 0.08% at $1,987.81 per ounce, while U.S. gold futures were up less than 0.06% to $1,997.1.
European stock markets closed cautiously higher Thursday, as strong corporate earnings overcame jitters around the U.S. banking sector.
The U.S. dollar rose on Thursday as weaker-than-expected U.S. economic growth in the first quarter is not likely to deter the Federal Reserve from raising interest rates next week.
The advance estimate of first-quarter gross domestic product showed a 1.1% annualized rate during the period. The economy grew at a 2.6% pace in the fourth quarter. Economists polled by Reuters had forecast GDP rising at a 2.0% rate.
However, investors focused on the quarterly inflation number within the GDP report. Core personal consumption expenditure prices rose 4.9% in the first three months of the year, higher than the consensus figure of 4.7% and up from the fourth quarter figure.
Markets have priced in a 90% probability of a 25 basis-point rate increase at the May policy meeting, with a pause factored in after that.
U.S. stock futures fell slightly on Thursday night as investors digested the latest round of corporate earnings, including results from Amazon.
Dow Jones Industrial Average futures fell by 24 points, or 0.07%. S&P 500 and Nasdaq 100 futures slipped 0.12% and 0.24%, respectively.
Investors are coming off a strong trading session for the major averages, with the Dow Jones Industrial Average and S&P 500 notching their best day since January. Meanwhile, the Nasdaq Composite jumped 2%, posting its best day since March.
Those gains come after a better-than-expected report from Meta fueled a rally in tech stocks. Investors appeared to shake off light GDP data that could signal the Federal Reserve’s rate-hiking campaign may soon come to an end.
On the economic front, traders will watch for the latest personal income and spending data, due out Friday before the open. Economists polled by Dow Jones are expecting core prices to have risen 0.3% in March from the prior month. That’s in line with the prior reading.
Oil prices steadied on Thursday, paring losses from the previous session, after a top Russian official said global oil markets were balanced.
Brent crude futures settled up 60 cents at $78.29 a barrel, while West Texas Intermediate crude settled up 51 cents at $74.81 a barrel.
Gold reversed course and fell on Thursday, as the dollar gained after weaker U.S. economic readings failed to upend expectations of another interest rate hike by the Federal Reserve next week amid stubborn inflation.
Spot gold was down 0.08% at $1,987.81 per ounce, while U.S. gold futures were up less than 0.06% to $1,997.1.
European stock markets closed cautiously higher Thursday, as strong corporate earnings overcame jitters around the U.S. banking sector.
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