SHANGHAI, Aug 23 —This is a roundup of global macroeconomic news last night and what is expected today.
The U.S. dollar rose across the board on Monday, briefly driving the euro back below parity, as investors shied away from riskier assets amid growing fears that interest-rate hikes in the United States and Europe, aimed at curbing inflation, would weaken the global economy.
Against a basket of currencies, the dollar was 0.72% higher at 108.95, not far from the two-decade high of 109.29 touched in mid-July.
The greenback has found support in recent sessions as several Federal Reserve officials reiterated an aggressive monetary tightening stance ahead of the Fed’s Jackson Hole, Wyoming, symposium this week.
The latest of these officials, Richmond Fed President Thomas Barkin, on Friday said the “urge” among central bankers was toward faster, front-loaded rate increases.
Stock futures inched higher in overnight trading after stocks finished their worst day since June and Wall Street’s summer rally faded amid mounting rate hike concerns.
Futures tied to the Dow Jones Industrial Average added 49 points, or 0.15%, while S&P 500 and Nasdaq 100 futures rose 0.16% and 0.21%, respectively.
During Monday’s regular trading session, the Dow slumped 643.13 points, or 1.91%, to 33,063.61, while the S&P tumbled 2.14% to 4,137.99, the worst day for both benchmarks since June 16. The Nasdaq Composite dropped 2.55% to 12,381.57 to finish its worst day since June 28.
Monday’s sell-off was broad-based, with all 11 S&P 500 sectors closing lower, led by declines in information technology and consumer discretionary stocks. A slide in tech stocks weighed down the tech-heavy Nasdaq.
Oil prices bounced off session lows to trade nearly flat in a volatile session on Monday, after Saudi energy minister said OPEC+ could cut production to confront market challenges.
Brent crude futures for October settlement fell 44 cents, or 0.5%, to $96.28 a barrel by 12:38 p.m. ET (1638 GMT). It had fallen as much as 4.5% earlier in the day, breaking a streak of three days of gains.
U.S. West Texas Intermediate (WTI) crude for September delivery - due to expire on Monday - was down 27 cents, or 0.3%, at $90.50. The more active October contract was down 24 cents, or 0.3%, at $90.20.
Gold prices fell to near a one-month low on Monday amid sharp declines in precious metals due to a stronger dollar, with looming Federal Reserve interest rate hikes also denting bullion’s appeal.
Extending losses into a sixth session, spot gold was last down 0.77% at $1,734.3154 per ounce after hitting its lowest since July 27 earlier in the session. U.S. gold futures were down 0.86% at $1,747.70.
The pan-European Stoxx 600 provisionally ended down 1%, with autos falling 3.9% to lead losses as almost all sectors and major bourses traded in negative territory.
