Macro Roundup (Sep 5)

SHANGHAI, Sep 5 —This is a roundup of global macroeconomic news last Friday and what is expected today.

The dollar eased from a 20-year high on Friday after data showed the pace of U.S. hiring rose more than expected in August, but wage growth moderated and unemployment ticked higher, giving the Federal Reserve some wiggle room when it raises interest rates later this month.

The U.S. economy added 315,000 jobs in August, data showed, topping the consensus forecast of 300,000 jobs by economists polled by Reuters, and marking the 20th straight month of job growth.

The dollar index, which tracks the currency against six counterparts, zig-zagged following the report, in thin trading ahead of the long North American Labor Day weekend.

The U.S. currency was last down 0.07% at 109.61, but was still up 0.6% for the week and set for its third-straight weekly gain.

The U.S. currency leaped to its strongest level since June 2002 on Thursday, 109.99, and has been riding high since Fed Chair Jerome Powell said at the Jackson Hole symposium in Wyoming last Friday that rates would need to be high “for some time” to combat stubbornly high inflation.

U.S. equities fell on Friday to cap their third straight weekly decline, after a solid August jobs report failed to ease fears that the Federal Reserve would keep aggressively hiking interest rates to fight inflation.

After rallying through the morning, the Dow Jones Industrial Average erased a 370-point gain and finished the session lower by 337.98 points, or about 1.1%, at 31,318.44. The S&P 500 fell roughly 1.1% to 3,924.26, its lowest close since July. The Nasdaq Composite declined 1.3% to 11,630.86, recording its first six-day losing streak since 2019.

All of the major averages were lower to end the week, making it their third negative week in a row after slumping in the final days of August. The Dow and S&P lost roughly 3% and 3.3%, respectively, while the Nasdaq fell 4.2%.

Oil prices rose on Friday on expectations that OPEC+ will discuss output cuts at a meeting on Sept. 5, though concern over China’s COVID-19 curbs and weakness in the global economy loomed over the market.

Brent crude futures rose 66 cents to settle at $93.02 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 26 cents to settle at $86.87 a barrel.

Both benchmarks slid 3% to two-week lows in the previous session. Brent posted a weekly drop of 7.9%, and WTI of 6.7%.

Gold bounced over 1% on Friday as the dollar retreated after U.S. jobs data came mostly in line with expectations, but it was still bound for a third consecutive weekly fall pressured by an elevated interest rate environment.

Spot gold rose 0.9% to $1,711.1438 per ounce. Prices were still down 1.5% for the week. U.S. gold futures were up 0.8% at $1,723.

The pan-European Stoxx 600 ended 2% higher by the close of trade. Autos added 3.8% to lead gains as all sectors and major bourses traded in positive territory.