Macro Roundup (Oct 19)

SHANGHAI, Oct 19 (SMM) — This is a roundup of global macroeconomic news last trading day and what is expected today.

The US dollar dipped on Monday after data showed production at U.S. factories fell by the most in seven months in September, erasing earlier gains on expectations that the Federal Reserve may be closer to raising interest rates than previously expected.

U.S. manufacturing output was hurt as an ongoing global shortage of semiconductors depressed motor vehicle output, providing further evidence that supply constraints were hampering economic growth.

Supply disruptions are adding to concerns about high inflation and adding to expectations that the U.S. central bank will need to act to stamp out price increases.

U.S. stock futures were steady in overnight trading Monday as investors geared up for a big day of earnings on Tuesday.

Dow futures fell just 30 points. S&P 500 futures fell less than 0.1% and Nasdaq 100 futures were down about 0.05%.

On Monday, the S&P 500 and Nasdaq Composite notched their fourth day of gains. The S&P 500 rose 0.34%. The Nasdaq was the relative outperformer, gaining 0.84% as Facebook, Amazon, Apple, Netflix and Google-parent Alphabet all closed higher.

The Dow Jones Industrial Average lost 36 points, dragged down by a 3% drop in Disney’s stock.

Oil prices pulled back after touching multi-year highs on Monday, trading mixed as U.S. industrial output for September fell, tempering early enthusiasm about demand.

Brent crude oil futures were down 62 cents or 0.7% at $82.26 a barrel after hitting $86.04, their highest since October 2018.

U.S. West Texas Intermediate (WTI) crude was 12 cents higher, or 0.1%, at $82.40 a barrel, after hitting $83.87, their highest since October 2014.

Both contracts rose by at least 3% last week.

Gold edged lower on Monday as a rise in U.S. Treasury yields dented its appeal, although a risk-off sentiment in wider financial markets limited losses for the metal.

Spot gold was down 0.1% at $1,765.14 per ounce, while U.S. gold futures settled down 0.2% at $1,765.70.

European stocks closed lower on Monday as investors reacted to slowing economic growth in China and soaring oil prices fueled elevated inflation concerns.

The pan-European Stoxx 600 provisionally ended down 0.5%, with autos stocks dropping 1.9% to lead losses. All sectors and major bourses closed the session in negative territory.