SHANGHAI, Feb 22 —This is a roundup of global macroeconomic news last night and what is expected today.
The dollar held on to modest gains against its peers on Tuesday, supported by strong U.S. economic data, but the greenback was down against the British pound.
Business activity in the United States in February unexpectedly rebounded to an eight-month high, increasing to 50.2 from a final reading of 46.8 in January, according to a survey. A PMI reading above 50 indicates expansion while a reading below that signals contraction.
It follows recent robust data on retail sales, the labor market and manufacturing production, suggesting solid momentum in the economy at the start of the year.
The euro fell 0.34% to $1.0648, extending losses after data showed euro zone manufacturing activity deteriorated, although losses were limited after a rebound in the more inflation-sensitive services sector.
Stock futures rose slightly in overnight trading as Wall Street braced for the Federal Reserve’s latest meeting minutes and more insight on the central bank’s future hiking agenda. Futures tied to the Dow Jones Industrial Average added 47 points, or 0.14%. Meanwhile, futures linked to the S&P 500 inched 0.12% higher, and Nasdaq 100 futures gained 0.16%.
Mounting concerns that the Federal Reserve will continue hiking rates spooked investors during regular trading Tuesday and pushed stocks to cap off their worst day of 2023. A slew of earnings reports, including disappointing results from Home Depot, also sparked concerns about the health of the consumer.
The Nasdaq Composite led the session’s losses, falling 2.5%, while the S&P 500 slumped 2%. The Dow Jones Industrial Average dropped 2.06% and turned negative for the year. All major S&P sectors finished with losses, led to the downside by consumer discretionary.
Brent crude oil slipped more than 1% in a volatile session on Tuesday as persistent concerns about global economic growth outweighed supply curbs and prompted investors to take profits on the previous day’s gains.
Global benchmark Brent crude was down $1.29, or 1.5%, at $82.78 a barrel.
U.S. West Texas Intermediate crude (WTI) for March, which expires on Tuesday, fell 29 cents, or 0.38%, to $76.05. The second-month contract slipped 10 cents, or 0.1%, at $76.45.
Gold prices eased on Tuesday as the dollar strengthened and bond yields rose, while investors looked toward U.S. economic data later this week for more clues on the rate-hike trajectory of the Federal Reserve.
Spot gold fell 0.3% to $1,835.57 per ounce. U.S. gold futures slipped 0.4% to settle at $1,842.50.
European markets closed lower Tuesday as investors weighed corporate earnings with the potential for the U.S. Federal Reserve to remain hawkish.
The pan-European Stoxx 600 index finished off 0.23% for the session, helped lower by Wall Street, with sectors a mixed bag. Tech stocks fell 1.5%, autos dropped 1% and basic resources slipped 1.2%; while banks gained 0.8%.
