Macro Roundup (Sep 16)

SHANGHAI, Sep 16 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar was slightly higher against the yen on Thursday following data showing U.S. retail sales unexpectedly rebounded in August, while the Swiss franc hit its strongest against the euro since 2015.

The dollar pared some gains following the data, which showed retail sales increased 0.3% last month, but demand for goods is cooling as the U.S. Federal Reserve raises interest rates. Economists polled by Reuters had forecast sales would be unchanged.

The dollar has been supported by the view that the Fed will keep tightening policy aggressively.

Recent data including this week’s surprise increase in consumer prices in August is likely to give the U.S. central bank enough reason to announce a third consecutive 75-basis-point rate hike next Wednesday.

U.S. stock futures fell on Thursday night as Wall Street headed toward a losing week, and traders absorbed an ugly earnings warning from FedEx.

Dow Jones Industrial Average futures dropped by 142 points, or 0.46%. S&P 500 and Nasdaq 100 futures declined 0.56% and 0.64%, respectively.

The three major averages were on pace to notch their fourth losing week in five. The Dow Jones Industrial Average declined 3.70% this week, while the S&P 500 is 4.08% lower. The Nasdaq Composite is down 4.62%, headed toward its worst weekly loss since June.

During the regular session Thursday, the Dow dropped 173 points, or 0.56%, for its lowest close since July 14. The Nasdaq Composite slid 1.43%, while the S&P 500 fell 1.13%.

Oil fell more than 2% on Thursday as expectations of weaker demand and a strong U.S. dollar ahead of a potentially large interest rate increase outweighed supply concerns.

The International Energy Agency said this week oil demand growth would grind to a halt in the fourth quarter. The dollar held near recent peaks, supported by expectations the U.S. Federal Reserve will continue to tighten policy.

Brent crude ended the day at $90.84, for a loss of 3.46%. U.S. West Texas Intermediate crude settled $3.38, or 3.8%, lower at $85.10 per barrel.

Gold dropped to its lowest level since April 2020 on Thursday, hurt by elevated U.S. Treasury yields and a firm dollar, as bets of another hefty rate hike by the U.S. Federal Reserve eroded bullion’s appeal.

Spot gold was last down 1.9% at $1,663.50 per ounce after falling more than 2% to $1,659.47 earlier in the session.

U.S. gold futures last fell 2.1% lower at $1,672.6.

The pan-European Stoxx 600 was down 0.59% as trading closed in London, after flipping between mild losses and gains during the morning.