SHANGHAI, Jul 12 —This is a roundup of global macroeconomic news last Friday and what is expected today.

The British pound dropped to a two-year low on Monday as traders moved to the sidelines as a leadership contest kicked off to determine Britain’s next prime minister.

Worsening risk appetite before the all-important U.S. inflation data this week sent the dollar surging against its main rivals.

Boris Johnson’s resignation as prime minister deepened the uncertainty hanging over the British economy, already under strain from an inflation rate heading for double digits, the risk of a recession and Brexit.

Against the U.S. dollar, the pound was trading at $1.1867, its lowest levels since March 2020 and down 1.2% on the day. Versus the euro, the pound was marginally weaker at 84.80 pence.

U.S. stock futures were little changed after hours Monday as Wall Street looks ahead to what many expect will be the start of a volatile second quarter earnings season this week.

Dow Jones Industrial Average futures fell by 12 points, or 0.03%. S&P 500 and Nasdaq 100 futures dipped 0.03% and 0.03%, respectively.

The Dow on Monday’s session shed 164.31 points, or 0.5%. The S&P 500 fell 1.2%, while the Nasdaq Composite lost nearly 2.3%.

Those moves come as investors prepare for companies to start reporting their latest results. Market participants will watch for downside risk to earnings forecasts as companies grapple with rising interest rates and greater inflationary pressures, and as Wall Street debates the likelihood of a recession.

Oil prices were little changed on Monday as markets balanced an expected drop in demand due to mass testing for COVID-19 in China against ongoing concerns over tight supply.

Brent futures added 0.07%, ending the dat ay $107.10 per barrel , while U.S. West Texas Intermediate (WTI) crude settled 0.67% lower at $104.09 per barrel.

With the U.S. Federal Reserve expected to keep raising interest rates, open interest in New York Mercantile Exchange (NYMEX) futures fell on July 7 to its lowest since October 2015 as investors cut back on risky assets.

Last week, oil speculators cut their net long futures and options positions on the NYMEX and Intercontinental Exchanges to their lowest since April 2020.

Gold was pinned at near a nine-month low on Monday as bets for aggressive interest rate hikes by the U.S. Federal Reserve and the dollar’s ascent dimmed appeal for bullion.

Spot gold fell 0.3% to $1,737.32 per ounce. U.S. gold futures dipped 0.3% to $1,737.00.

The pan-European Stoxx 600 index provisionally ended 0.5% lower, with most sectors and major bourses in negative territory. Autos stocks led the losses, down 2.7%, while utilities bucked the trend to close over 1.2% higher.