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Macro Roundup (Aug 17)

iconAug 17, 2022 09:30
Source:SMM
The dollar was little changed against a basket of currencies on Tuesday as investors waited on U.S. retail sales and minutes from the Federal Reserve’s July meeting on Wednesday.

SHANGHAI, Aug 17 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar was little changed against a basket of currencies on Tuesday as investors waited on U.S. retail sales and minutes from the Federal Reserve’s July meeting on Wednesday.

The greenback has bounced from a six-week low last week as investors ramp up bets that the U.S. central bank will continue to hike rates aggressively as inflation remains persistently high.

Trading has been choppy, however, with the Fed not due to meet until Sept. 20-21 and with more consumer price inflation and jobs data due before then.

Looser financial conditions as benchmark 10-year Treasury yields hold below 3% and as the credit and stocks markets improve has increased speculation the Fed may need to be more aggressive in tightening conditions to address rising price pressures.

Stock futures were little changed Tuesday evening after two of the country’s big box chains, Walmart and Home Depot, pushed the Dow and S&P 500 higher and set the stage for more retail earnings this week.

Futures tied to the Dow Jones Industrial Average fell 17 points, or 0.5%. S&P 500 futures and Nasdaq 100 futures slipped 0.04% and 0.07%, respectively.

In regular trading, the Dow ended the day up 239 points, or 0.7% and the S&P added 0.2%. The Nasdaq Composite slipped 0.2%.

The Dow notched its fifth straight day of gains. Meanwhile, the S&P 500 is going for its fifth up week in a row as investors continue to gauge how much strength this rally has. The broad market index is now up 18% from its June lows.

Oil prices fell over 1% on Tuesday in volatile trading as economic data spurred concerns about a potential global recession, while the market awaited clarity on talks to revive a deal that could allow more Iranian oil exports.

Brent crude futures ended the day 2.9% lower at $92.34 per barrel, after hitting a session high of $95.95. West Texas Intermediate crude ended the day 3.2% lower at $86.53 per barrel.

The contracts fell about 3% in their previous sessions.

The European Union is assessing Iran’s response to what the bloc has called its “final” proposal to save a 2015 nuclear deal, and consulting with the United States, an EU spokesperson said on Tuesday.

Iran responded to the proposal late on Monday but neither Tehran nor the EU provided any details on the content of the reply.

Gold edged lower on Tuesday as the dollar held close to a near three-week high, while investors awaited direction on interest rate hikes from minutes of the U.S. Federal Reserve’s last meeting.

Spot gold fell 0.2% to $1,774.79 per ounce, after a more than 1% decline on Monday.

U.S. gold futures settled down 0.5% at $1,789.7.

The pan-European Stoxx 600 index ended the day up 0.2%, with basic resources adding 3.4% to lead gains while health care slid 0.6%.

Macro

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