Macro Roundup (Aug 10)

SHANGHAI, Aug 10 —This is a roundup of global macroeconomic news last night and what is expected today.

The safe-haven dollar edged higher on Tuesday, erasing earlier losses as risk appetite dwindled ahead of key inflation figures that could offer clues on how aggressive the Federal Reserve will be in its expected interest rate hike in September.

The dollar index, which measures the currency’s value against a basket of peers, was up 0.047%.

The greenback had drifted lower in thin summer trading from the start of the session, but then reversed course as U.S. stock markets slid on profit warnings, global inflationary concerns, and data that showed U.S. worker productivity fell sharply in the second quarter.

The big focus for traders is on Wednesday’s U.S. Consumer Price Index report, which is expected to show that decades-high inflation eased in July following back-to-back 75-basis point hikes by the Fed in June and July.

Stock futures rose Tuesday as investors looked ahead to a key inflation report set to be released Wednesday.

Dow Jones Industrial Average futures rose by 24 points, or 0.07%. S&P 500 and Nasdaq 100 futures climbed 0.07% and 0.11%, respectively.

The moves come after the S&P 500 and Nasdaq fell for a third straight day on Tuesday. The Nasdaq Composite led the declines, falling 1.19% after Micron, Novavax and Upstart warned that future earnings and revenue may come in lower than previously thought. The S&P 500 fell 0.42%, and the Dow Jones Industrial Average shed 0.18%.

Oil prices settled slightly lower on Tuesday after a see-saw session as worries that a slowing economy could cut demand vied with news that some oil exports had been suspended on the Russia-to-Europe Druzhba pipeline that transits Ukraine.

Crude prices have been under pressure for weeks as fears mounted that a recession could cut oil demand.

Brent crude settled at $96.31 a barrel, losing 34 cents, or 0.4%. U.S. West Texas Intermediate (WTI) crude settled at $90.50 a barrel, shedding 26 cents, or 0.3%. During the session, both benchmarks rose and fell by more than $1 a barrel.

Ukraine halted oil flows on the Druzhba oil pipeline to parts of central Europe because Western sanctions had prevented a payment from Moscow for transit fees from going through.

Gold prices gained on Tuesday supported by a softer dollar, while market participants awaited U.S. inflation data for cues on the Federal Reserve’s policy tightening path.

Spot gold was 0.4% higher at $1,794.76 per ounce, while U.S. gold futures rose 0.4% to $1,811.40.

The pan-European Stoxx 600 provisionally ended down by 0.6%, with technology stocks shedding 3.2% to lead losses while oil and gas stocks bucked the downward trend to add 1.2%.