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Macro Roundup (Aug 16)
Aug 16, 2022 09:30CST
Source:SMM
The safe-haven U.S. dollar rose on Monday after a new batch of disappointing data from China bolstered global recession worries, while the yuan weakened following a People’s Bank of China surprise rate cut.

SHANGHAI, Aug 16 —This is a roundup of global macroeconomic news last night and what is expected today.

The safe-haven U.S. dollar rose on Monday after a new batch of disappointing data from China bolstered global recession worries, while the yuan weakened following a People’s Bank of China surprise rate cut.

Chinese industrial output, retail sales and fixed-asset investment all fell short of analyst estimates on Monday, as a nascent recovery from draconian Covid-19 lockdowns faltered.

The dollar was also supported by Federal Reserve policymakers’ hawkish comments in response to early signs that U.S. inflation may have peaked.

U.S. stock futures were flat on Monday night after all three major averages gained during the daily trading session.

Dow Jones Industrial Average futures shed 45 points, or 0.13%. On Monday, the 30-stock index closed above its 200-day moving average for the first time since late April. S&P 500 and Nasdaq 100 futures dipped 0.13% and 0.08%, respectively.

At the start of regular trading on Monday, energy and financials initially dragged markets down following weak economic reports from China and news that the country’s central bank had unexpectedly cut interest rates. Later in the day, markets rebounded and went positive when consumer staples, communication services and consumer discretionary stocks rallied.

Oil prices fell by more than $4 a barrel on Monday on demand fears as disappointing Chinese economic data renewed global recession concerns.

Brent crude futures ended the day 3.1% lower at $95.10 per barrel.

U.S. West Texas Intermediate crude settled 2.9% lower at $89.41 per barrel.

Brent crude open interest this month is down by 20% from August last year.

Gold prices slid 1% on Monday as the dollar strengthened and as investors turned cautious in the run-up to minutes of the previous U.S. Federal Reserve policy meeting amid hawkish comments from the central bank officials.

Spot gold was down 1.28% at $1,778.74 per ounce, after rising about 1.6% last week. U.S. gold futures dropped 1.14% to $1,794.8.

The pan-European Stoxx 600 ended the session fractionally above the flatline after a choppy day’s trade. Food and beverages rose 0.9% to lead gains, while mining stocks fell 1.6%.

Macro

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