SHANGHAI, Sep 8 —This is a roundup of global macroeconomic news last night and what is expected today.
The dollar surged to a 24-year peak against the yen and a 37-year high versus sterling on Wednesday, as Japan’s dovish monetary policy and Europe’s economic problems contrasted with a relatively stronger U.S. economy and a hawkish Federal Reserve determined to bring down inflation to its 2% inflation target.
The U.S. currency soared as high as 144.99 yen, hitting the level for the first time since August 1998. It is now within a large leap of its 1998 high of 147.43. The dollar was last up 0.9% at 144.09 yen.
Against sterling, the greenback hit $1.1407, the lowest since 1985 and last down 0.1% at $1.1509.
Stock futures were flat on Wednesday evening as Wall Street looked to build on its best day in nearly a month.
Futures for the Dow Jones Industrial Average added 7 points, or less than 0.1%. Futures for the S&P 500 and Nasdaq 100 each ticked up less than 0.1%.
The stock market is coming off a solid rebound during Wednesday’s regular trading hours. The Dow gained about 436 points, or 1.4%. The S&P 500 added 1.8%, and the Nasdaq Composite popped 2.1%.
It was the best day since Aug. 10 for all three averages, and the Nasdaq snapped a seven-day losing streak.
Even with Wednesday’s rally, stocks remain in a downtrend overall. Concerns about a slowing economy and further rate hikes from the Federal Reserve are pushing some investors away from riskier parts of the market.
Oil prices fell by more than $4 on Wednesday to their lowest since Russia invaded Ukraine on demand fears stoked by looming recession risks and downbeat Chinese trade data.
Brent crude futures settled at $88 a barrel, for a loss of $4.83 or 5.2%.
U.S. West Texas Intermediate crude settled $4.94, or 5.69%, lower at $81.94 per barrel.
Gold bounced back on Wednesday helped by the dollar’s slight retreat from a two-decade high and as bargain hunters took advantage of recent losses, but the precious metal’s outlook was still clouded by prospects of aggressive rate hikes.
Spot gold rose 0.9% to $1,716.59 per ounce by 2:02 p.m. ET. U.S. gold futures settled 0.9% higher at $1,727.80.
The pan-European Stoxx 600 provisionally ended the day down 0.4%, with oil & gas shedding 2.9% to lead losses. Utilities stocks were the best performing of the day, closing up 2.1%.
