SHANGHAI, Sep 6 —This is a roundup of global macroeconomic news last night and what is expected today.
The U.S. dollar index hit a new two-decade high, briefly topping 110.
The euro fell and was testing a two-decade low on Monday after Russia’s indefinite closure of its main gas supply pipeline to Europe stoked fears of energy shortages, high prices and a hit to growth, while the U.S. dollar index hit a 20-year high.
Russia scrapped a Saturday deadline for flows down the Nord Stream pipeline to resume, citing an oil leak in a turbine. It coincided with the Group of Seven finance ministers announcing a price cap on Russian oil.
Outsized rate hikes are also on the cards this week. Markets have priced about a 75% chance of a 75 basis point hike in Europe and an almost 70% chance of a 50 bp hike in Australia.
Pricing for a 75 bp hike in the United States this month has pared back somewhat after a mixed jobs report on Friday, that contained a few hints of a loosening labor market.
Fed funds futures imply about a 55% chance of a 75 bp hike.
Stock futures rose in overnight trading Monday after the major averages capped their third straight week of losses.
Futures tied to the Dow Jones Industrial Average gained 158 points, or 0.5%. Nasdaq 100 futures rose 0.53% and S&P 500 futures added 0.47%.
On Friday, the major averages closed out their third negative week in a row. The Nasdaq Composite posted its first six-day losing streak since 2019, ending the session 1.3% lower, while the Dow erased a 370-point gain on Friday to close about 1.1% lower. The S&P shed 1.1% to its lowest close since July.
Oil prices jumped more than $1 a barrel on Monday, extending gains as investors eyed possible moves by OPEC+ producers to tweak production and support prices at a meeting later in the day.
Brent crude futures rose $1.43, or 1.5%, to $94.45 a barrel by 0054 GMT after gaining 0.7% on Friday. U.S. West Texas Intermediate crude was at $88.12 a barrel, up $1.25, or 1.4%, following a 0.3% advance in the previous session. U.S. markets are closed for a public holiday on Monday.
Gold prices were flat on Monday, after jumping as much as 1.2% in the previous session, as cautious investors focused on the U.S. Federal Reserve’s rate-hike path following a mixed jobs data.
Spot gold was unchanged at $1,611.48 per ounce, as of 0148 GMT.
U.S. gold futures were flat at $1,722.50.
The pan-European Stoxx 600 provisionally ended down 0.6%, having recouped some of its earlier losses. Autos plunged 4.8% to lead losses as most sectors and major bourses slid deep into negative territory. Oil and gas stocks bucked the downward trend to add 2% as prices spiked once more.
