Macro Roundup (Sep 19)

SHANGHAI, Sep 19 —This is a roundup of global macroeconomic news last Friday and what is expected today.

The dollar index was down slightly on Friday but registered a gain for the week as investors expected the U.S. Federal Reserve to remain aggressive when it hikes interest rates next week, while China’s yuan eased past the key threshold of 7 per dollar.

The dollar mostly held a slight gain following U.S. data showing consumer sentiment improved moderately in September. The University of Michigan’s preliminary September reading on the overall index on consumer sentiment came in at 59.5, up from 58.6 in the prior month. Economists polled by Reuters had forecast a preliminary reading of 60.0 in September.

The dollar, measured against a basket of currencies, declined 0.1% on the day to 109.68. It reached a two-decade high of 110.79 earlier this month. For the week, it was up 0.6%, and it is up about 15% for the year so far.

S&P 500 futures were little changed on Sunday evening after the major averages posted their worst week since June and ahead of the Federal Reserve’s two-day meeting this week.

Futures tied to the broad market index were flat in premarket trading. Dow Jones Industrial Average futures were 0.1% higher, while Nasdaq 100 futures fell 0.1%.

On Friday, stocks slid as investors reacted to a hotter-than-expected inflation report and a dismal warning from FedEx about a “significantly worsened” global economy. The Dow industrials dropped 139 points, while the S&P 500 lost 0.7% and the Nasdaq Composite shed 0.9%.

Investors are focused on the Fed’s two-day meeting, which will begin Tuesday. The central bank is expected to raise interest rates by another three-quarters of a point, though investors are also watching for guidance about corporate earnings before the next reporting season begins in October.

Oil prices were broadly steady on Friday but on track for a weekly decline on fears of sharp interest rate increases expected to curb global economic growth and fuel demand.

Brent crude futures settled 51 cents higher at $91.35 per barrel. U.S. West Texas Intermediate (WTI) crude futures ended the day at $85.11 per barrel for a gain of one cent.

Both benchmarks are headed for third consecutive weekly losses, hurt partly by a strong U.S. dollar, which makes oil more expensive for buyers using other currencies. The dollar index held near last week’s high above 110.

Gold edged up on Friday as the dollar stalled, but expectations of a sizeable U.S. rate hike kept bullion well below the key $1,700 mark and en route to its worst week in four.

Spot gold was 0.6% higher at $1,673.19 per ounce. U.S. gold futures rose 0.3% to $1,682.10.

The pan-European Stoxx 600 closed 1.6% lower, with all sectors and major bourses in negative territory.