SHANGHAI, Aug 31 —This is a roundup of global macroeconomic news last night and what is expected today.
The dollar rose on Tuesday, but was below the 20-year high it hit a day earlier, while the euro edged higher but failed to remain above parity, as markets priced in super-sized interest rate hikes by both the U.S. Federal Reserve and the European Central Bank (ECB).
The dollar index slipped 0.04% at 108.79 at 4:00 pm E.T, after touching 109.48 on Monday, its highest level since September 2002.
The greenback has been supported by aggressive rate hikes by the Fed in an effort to reel in decades-high inflation.
Some traders had bet the Fed would pivot to a more accommodative stance early in 2023, but those expectations were dashed on Friday when Chairman Jerome Powell said at the Jackson Hole conference in Wyoming that the central bank would raise rates and keep them high for some time.
Stock futures were flat in overnight trading after Wall Street’s losing streak stretched into its third day and endangered the market’s recent summer rebound.
Futures tied to the Dow Jones Industrial Average inched 0.08% higher, while S&P 500 and Nasdaq 100 futures traded flat.
Investors have sold off heavily since Friday after hawkish remarks from Federal Reserve Chair Jerome Powell. Most recently, New York Fed President John Williams called for “somewhat restrictive policy to slow demand.”
The sell-off on Wall Street rolled into Tuesday, with the Dow Jones Industrial Average sliding 308.12 points, or nearly 1%, to 31,790.87. The Nasdaq Composite dropped 1.1%, to 11,883.14. The S&P 500 slumped 1.1% to 3,986.16, falling below the 4,000 mark for the first time since late July. All the major averages were on pace to finish August with losses.
Oil prices fell more than $7 a barrel on Tuesday, the steepest decline in about a month, on fears that an inflation-induced weakening of global economies would soften fuel demand and as unrest in Iraq has failed to put a dent in the OPEC nation’s crude exports.
Brent crude futures for October settlement declined 5.5% to end the day at $99.31 per barrel. U.S. West Texas Intermediate crude declined $5.37, or 5.5%, to settle at $91.64 per barrel.
Gold prices fell on Tuesday as investors positioned for a period of high interest rates in the United States and elsewhere.
Spot gold fell 0.83% to $1,723.49 per ounce by 4:00 pm E.T. after hitting a one-month low of $1,719.56 on Monday. U.S. gold futures settled down 0.8% at $1,735.3.
The pan-European Stoxx 600 closed down by 0.7% provisionally, having initially climbed about 0.8% in early trade Basic resources stocks slumped 3% to lead the losses with most sectors and major bourses dipping into negative territory.
