SHANGHAI, Sep 2 —This is a roundup of global macroeconomic news last night and what is expected today.
The dollar index hit a 20-year high on Thursday, and notched a 24-year peak against the rate-sensitive Japanese yen, after U.S. data showed a resiliently strong economy, giving the Federal Reserve more room to aggressively raise interest rates to curb inflation.
The U.S. currency strengthened after a government report showed that the number of Americans filing new claims for unemployment benefits declined further last week, consistent with strong demand for workers and tight labor market conditions.
The report also showed that layoffs dropped in August, despite hefty interest rate increases from the Fed to quell inflation, which have raised the risk of a recession.
Data from the Institute for Supply Management (ISM) showed U.S. manufacturing grew steadily in August as employment and new orders rebounded, while a further easing in price pressures strengthened expectations that inflation has likely peaked.
U.S. stock futures were flat Thursday as investors await a key jobs report for August due Friday that will give more information about the state of the economy.
Dow Jones Industrial Average futures fell 9 points, or 0.03%. S&P 500 and Nasdaq 100 futures shed 0.02% and 0.01%, respectively. Shares of retailer Lululemon jumped nearly 10% in late trading after reporting quarterly results that beat Wall Street’s expectations.
Earlier Thursday, the Dow and the S&P 500 ended the day higher, snapping four days of losses to kick off the first trading day of September. The Nasdaq Composite slipped, posting its first five-day losing streak since February, weighed down by falling semiconductor stocks.
All three major averages are set to end the week lower after slumping in the last days of August, on course to notch their third negative week in a row. Stocks have been weighed down by hawkish comments from Federal Reserve officials signaling that interest rate hikes aren’t going away anytime soon. Now, traders are watching to see if stocks will retest the June lows, especially since September is historically a poor month for the market.
Oil prices tumbled on Thursday, as new Covid-19 lockdown measures in China added to worries that high inflation and interest rate hikes are denting fuel demand.
Brent crude futures ended the day at $92.36 per barrel for a loss of 3.4%. U.S. West Texas Intermediate (WTI) crude futures settled 3.28% lower at $86.61 per barrel.
Gold prices fell below the key $1,700 level on Thursday for the first time since July, as a rising dollar and expectations for aggressive interest rate hikes eroded its appeal.
Spot gold was down 0.94% at $1,694.59 per ounce, having dropped to its lowest since July 21 earlier in the session.
U.S. gold futures settled 1% lower at $1,705.9.
The pan-European Stoxx 600 closed 1.8% lower Thursday, with all sectors ending the day in the red. Travel and leisure stocks led losses, falling 3.9%, followed by basic resources, down 3.8%.
