Macro Roundup (Sep 30)

SHANGHAI, Sep 30 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar on Tuesday dropped from last week's two-month highs, as investors capitalized on recent gains in the greenback and cautiously looked ahead to the first debate between US President Donald Trump and Democratic challenger Joe Biden.

The 90-minute televised debate between the two U.S. presidential candidates at 9 p.m. EDT will be watched by investors looking for guidance on the candidates’ prospects.

“The debate is so much awaited because of all the political tensions going and also because economically both candidates have different visions for the country,” said Juan Perez, senior currency trader, at Tempus Inc in Washington.

“There is a lot more volatility on the domestic side than on the international side. Global sentiment is also a little better than that in the US and so it’s making sense that investors are moving away from the U.S. dollar,” he added.

Oil prices on Tuesday fell more than 3%, although closed off their lowest levels of the day, on worries about the outlook for fuel demand as Europe and the United States grappled with a surge in new coronavirus infections.

More than a million people worldwide have died from COVID-19, a bleak milestone in a pandemic that has devastated the global economy and demand for fuel. New York City will impose fines on people who refuse to wear a face covering as the rate of positive coronavirus tests climbed above 3% for the first time in months, Mayor Bill de Blasio said on Tuesday.

Clashes between Armenia and Azerbaijan over the Nagorno-Karabakh region have also kept markets on edge. If the conflict escalates, it could affect oil and gas exports from Azerbaijan.

In Libya, meanwhile, the Sarir oilfield has restarted production, the head of the company that operates it said on Tuesday, after eastern forces lifted an eight-month blockade on energy facilities.

Gold rose to its in a week on Tuesday as the dollar weakened and hopes rose for an additional fiscal stimulus for the American economy, ahead of the first US presidential debate.

US stock futures traded flat on Tuesday night after the release of coronavirus treatment data from Regeneron Pharmaceuticals while traders awaited the first presidential debate.

Dow Jones Industrial Average futures were up just 13 points, or 0.1%. S&P 500 and Nasdaq 100 futures also rose marginally.

After the closing bell, Regeneron said its REGN-COV2 drug reduced viral levels and improved symptoms in non-hospitalized coronavirus patients. “The greatest treatment benefit was in patients who had not mounted their own effective immune response, suggesting that REGN-COV2 could provide a therapeutic substitute for the naturally-occurring immune response,” Regeneron Chief Scientific Officer George D. Yancopoulos said in a statement.

In Europe, the UK and the European Union have indicated that a Brexit deal is still some way off after negotiations recommenced Monday over implementing their Withdrawal Agreement, which British Prime Minister Boris Johnson’s government has sought to renege on.

Here's a look at what's on tap:

China: Official manufacturing Purchasing Managers’ Index for September and Caixin/Markit manufacturing PMI for September

Germany: Retail sales for August and adjusted unemployment rate for September

US: ADP employment for September, second-quarter gross domestic product (GDP) and inventory data from Energy Information Administration (EIA).

Markets were also waiting for developments in talks over aid for people affected by the coronavirus in the United States.

U.S. House Speaker Nancy Pelosi said on Tuesday she hoped to have a coronavirus aid deal with the White House this week, after speaking with Treasury Secretary Steve Mnuchin for about 50 minutes and making plans for further talks on Wednesday.