Macro Roundup (Sep 22)

SHANGHAI, Sep 22 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The US dollar index soared on Monday and riskier currencies fell as investors looked for safety while stock markets around the world tumbled on fears of the economic implications of rising COVID-19 cases.

The euro and the Australian dollar fell against the greenback, and equities on Wall Street followed Asian and European stock markets lower, as the threat of new pandemic-related lockdowns prompted concerns about the global recovery.

Oil prices plunged more than 4% on Monday, weakening as rising coronavirus cases stoked worries about global demand and a potential return of Libyan production bolstered oversupply fears.

Crude oil followed other equities and commodities markets in turning risk-averse on Monday as rising COVID-19 infection rates in Europe and other countries prompted renewed lockdown measures, casting doubt over economic recovery.

More than 30.78 million people have been infected by the novel coronavirus, and British Prime Minister Boris Johnson was on Monday pondering a second national lockdown, while cases in Spain and France have also climbed.

Stock futures rose slightly in overnight trading on Monday following a steep sell-off on Wall Street.

The market’s September sell-off intensified on Monday with the Dow Jones Industrial Average dropping 500 points, suffering its worst day since Sept. 8. The S&P 500 lost 1.2%, posting its first four-day losing streak since February. The Nasdaq Composite dipped just 0.1% after a late-day comeback rally.

Investors grew more anxious about the pandemic as the UK is reportedly considering another national lockdown as daily new infections rise. Meanwhile, prospects of further US coronavirus fiscal stimulus became bleaker as lawmakers brace for a Supreme Court confirmation fight as President Donald Trump rushes to nominate a successor to Justice Ruth Bader Ginsburg, who died on Friday.

Gold slumped over 3% on Monday, sliding to its lowest level in more than a month, as a broader market sell-off driven by uncertainty over more US fiscal stimulus pressured the precious complex along with a stronger dollar.

The US Congress has for weeks remained deadlocked over the size and shape of a fifth coronavirus-response bill, on top of the approximately $3 trillion already enacted into law.

On Tuesday, investors will monitor a hearing with US Treasury Secretary Steven Mnuchin and Federal Reserve chair Jerome Powell in front of the House Financial Services Committee about pandemic responses.

US pending home sales for August and September consumer confidence index in euro zone are set for release today.