Macro Roundup (Nov 2)

SHANGHAI, Nov 2 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The safe-haven dollar rose to a four-week high on Friday, moving within narrow ranges, amid jitters ahead of next week’s U.S. presidential election and the continued surge in global coronavirus cases that has forced lockdowns in parts of Europe.

The greenback posted its largest weekly percentage gain since late September, with investors scooping up dollars due to fears of a contested election and the economic impact of renewed lockdowns in France, Germany and some regions of Spain.

On Wall Street, Stock futures fell in overnight trading on Sunday amid concern rising coronavirus cases could slow the global economy.

The losses came as England adopted a stay-at-home order and as traders braced for Tuesday’s U.S. presidential election, where a contested fight for president or the Senate could delay a much-needed fiscal stimulus for the U.S. economy.

Futures on the Dow Jones Industrial Average were down by 150 points. S&P 500 futures dipped 0.5% and Nasdaq 100 futures also traded 0.5% lower.

Prime Minister Boris Johnson announced Saturday England is closing all nonessential businesses for the next four weeks after more than 22,600 weekly Covid-19 cases were reported for the U.K., far higher than its first peak of 4,800 average weekly cases in the spring. People will be ordered to stay at home unless it’s for essential purposes, Johnson said.

The U.S. is also grappling with rising new coronavirus infections. The nation reported 99,321 new Covid-19 cases on Friday, beating its previous record set only a day prior, according to Johns Hopkins University. The top five records in daily cases have all been reported within the last eight days.

Oil prices fell more than 1% on Friday, extending losses and on track for a second monthly fall, on growing concerns that the rise in COVID-19 cases in Europe and the United States could hurt fuel consumption.

Brent crude slipped for a third day and settled 19 cents, or 0.5%, lower at $37.46 per barrel, after touching a five-month low in the previous session. December Brent contract expires on Friday.

U.S. West Texas Intermediate (WTI) crude settled 38 cents, or 1.1%, lower at a five month low of $35.79 per barrel.

Gold prices rose on Friday as the dollar rally paused, with worries over rising COVID-19 cases and uncertainty surrounding next week’s U.S. presidential election offering support to the safe-haven metal.

Euro zone GDP (gross domestic product) jumped by more than expected in the third quarter, with a quarterly climb of 12.7%, according to preliminary data from the EU statistics office on Friday. The partial rebound from the previous quarter’s pandemic-induced plunge was driven in large part by France, Italy and Spain. Meanwhile inflation for the bloc came in October was -0.3%, unchanged from the previous month.

Key economic data slated for release today include Manufacturing PMI in the Euro Area for October, Germany Manufacturing PMI for October, Markit final U.S. Manufacturing for October, US Construction Spending for October.