SHANGHAI, Jan 17 (SMM) — This is a roundup of global macroeconomic news last Friday night and what is expected today.
The U.S. dollar snapped a three-day losing streak on Friday as the recent selling spree driven by the view that Federal Reserve tightening moves were largely priced in abated, and as weaker risk appetite in financial markets led investors to shun riskier currencies.
The U.S. dollar index was 0.3% higher at 95.157, but still looked set to finish the week down about 0.6%, its worst weekly showing since early September.
The greenback, which rose more than 6% against a basket of currencies in 2021, came under pressure this week despite Fed Chair Jerome Powell saying that the U.S. economy is ready for the start of tighter monetary policy and data showing the largest annual rise in inflation in nearly four decades.
Major bank stocks declined after their earnings reports on Friday, weighing on the U.S. markets as Wall Street notched a second straight negative week to start the year.
The Dow Jones Industrial Average slid 201.81 points, or 0.56%, to 35,911.81. The S&P 500 inched up 0.08% to 4,662.85, while the tech-heavy Nasdaq Composite outperformed with a 0.59% gain to close at 14,893.75.
Bank stocks, which had outperformed in recent weeks as interest rates moved higher, were broadly lower as their reports appeared to underwhelm investors despite strong headline numbers.
Oil futures settled higher on Friday, boosted by supply constraints and worries of a Russian attack on neighbouring Ukraine, pushing prices toward their fourth weekly gain despite sources saying China is set to release crude reserves around the Lunar New Year.
Brent crude futures settled $1.59, or 1.9%, higher at a 2-1/2-month high of $86.06 a barrel, gaining 5.4% in the week.
U.S. West Texas Intermediate crude gained $1.70 , or 2.1%, to $83.82 per barrel, rising 6.3% in the week.
Both Brent and U.S. futures entered overbought territory for the first time since late October.
Gold prices slipped on Friday, weighed down by an uptick in Treasury yields on prospects of U.S. interest rate hikes and a stronger dollar.
Spot gold was down 0.3% at $1,816.22 per ounce by 13:56 ET (1856 GMT). U.S. gold futures settled down 0.3% at $1,816.50.
The pan-European Stoxx 600 provisionally ended around 1% lower, with retail stocks dropping 2.3% to lead losses as almost all sectors and major bourses slid into negative territory.
In terms of individual share price movement, French state-owned utility EDF plunged more than 14% after being ordered by the government to sell more of its cheap nuclear power to smaller rivals in order to curb electricity price rises. The company subsequently dropped its earnings guidance.
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