SHANGHAI, Sep 21 —This is a roundup of global macroeconomic news last night and what is expected today.
The dollar rose on Tuesday, trading near a two-decade high, as investors held firm on expectation of another aggressive rate hike by the Federal Reserve, the centerpiece of a week packed with central bank meetings.
The Fed starts a two-day meeting on Tuesday, with rate futures traders pricing in an 81% chance of a 75 basis point hike and a 19% probability of a 100 bps of tightening.
The dollar index was on track for its fifth weekly gain in six and was last up 0.35% at 110.12.
It’s not far from 110.79, a level hit earlier this month for the first time since June 2002.
Stock futures were flat Tuesday evening as traders look ahead to Wednesday’s interest rate hike announcement from the Federal Reserve.
Dow Jones Industrial Average futures rose by 12 points, or 0.04%. S&P 500 and Nasdaq 100 futures climbed 0.07% and 0.07%, respectively.
Stocks fell Tuesday on the first day of the Federal Open Market Committee’s meeting. The Dow Jones Industrial Average shed 313.45 points, or 1.01%. The S&P 500 and the Nasdaq Composite fell 1.13% and 0.95% respectively.
Yields also jumped Tuesday. The 2-year U.S. Treasury note yield surged as high as 3.99%, its highest level since 2007. The yield on the 10-year Treasury briefly touched 3.6%, the most since 2011.
Oil prices dipped on Tuesday, following other risk assets lower, as the dollar stayed strong and investors anticipated more central bank interest-rate hikes designed to quell inflation.
The U.S. Federal Reserve is likely to raise interest rates by another 75 basis points on Wednesday to rein in inflation. Those expectations are weighing on equities, which often move in tandem with oil prices. Other central banks, including the Bank of England, meet this week as well.
Higher rates have bolstered the dollar, which remained near a two-decade high against peers on Tuesday, making oil more expensive for holders of other currencies.
Gold prices dropped as much as 1% on Tuesday as the dollar and Treasury yields firmed, and investors squared positions ahead of a widely expected big interest rate hike by the U.S. Federal Reserve this week.
Spot gold was down 0.66% at $1,664.99 an ounce by 4:00 p.m. ET, lingering near a 29-month low hit last week. U.S. gold futures fell 0.26% to $1,673.8.
The pan-European Stoxx 600 ended down 1.1% provisionally, giving back opening gains of more than 0.9%.
