Macro Roundup (Sep 16)

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

The dollar slipped against major currencies on Wednesday after softer-than-expected U.S. inflation data released on Tuesday eased short-term expectations about tapering of asset purchases from the Federal Reserve.

The dollar index last stood at 92.546, down about 0.1% on the day from Tuesday, when it dropped following the inflation data but recovered on haven demand as stocks slid on Wall Street.

But the greenback trimmed losses after data showing import prices fell unexpectedly in August and a higher-than-expected reading for the New York Fed’s business survey.

These reports offset data showing U.S. manufacturing output slowed in August, rising 0.2% from a 1.6% increase the previous month.

On Wall Street, stock futures edged up in overnight trading on Wednesday following a rebound on Wall Street as the market tried to avert the seasonally weak September.

Futures on the Dow Jones Industrial Average rose 30 points. S&P 500 futures and Nasdaq 100 futures both gained 0.1%.

Moderna rose slightly in extended trading after the company released more data on breakthrough Covid cases that supports the push for the wide use of vaccine booster shots.

The S&P 500 gained 0.9% Wednesday amid a 3.8% jump in the energy sector, posting its biggest daily increase since Aug. 27. The blue-chip Dow advanced more than 200 points, while the tech-heavy Nasdaq Composite rose 0.8%.

Oil prices rose over $2 on Wednesday after industry data showed a larger-than-expected drawdown in U.S. crude inventories and on expectations demand will rise as vaccination roll-outs widen.

Brent oil rose advanced $1.86, or 2.5%, to settle at $75.46 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed $2.15, or 3.05%, to settle at $72.61 per barrel.

Brent hit its highest levels since late July and WTI since early August.

U.S. crude oil, gasoline and distillate stocks fell last week, two market sources said, citing American Petroleum Institute figures, after Hurricane Ida shut numerous refineries and offshore drilling production.

Crude stocks fell by 5.4 million barrels for the week ending Sept. 10, compared to a forecast 3.5 million barrel drop.

Gold retreated on Wednesday, hit by a bout of technical selling after it failed to hold above the key $1,800 level as investors looked past a subdued dollar and sought clarity on the U.S. Federal Reserve’s tapering strategy.

Spot gold fell 0.6% to $1,793.81 per ounce, while U.S. gold futures eased 0.6% to $1,796.00.

But spot prices traded within a tight range, reflecting overall uncertainty over the path the Fed may adopt at its meeting next week after softer U.S. inflation data on Tuesday.

The pan-European Stoxx 600 provisionally ended Wednesday’s session down 0.7%, with utilities shares dropping 2.7% to lead the losses as most sectors and major bourses dipped into the red.

Euro zone industrial production was stronger than expected in July, Eurostat data revealed Wednesday, rising 1.5% month-on-month and 7.7% annually against expectations of 0.6% and 6.3% increases.