Macro Roundup (Sep 23)

SHANGHAI, Sep 23 —This is a roundup of global macroeconomic news last night and what is expected today.

The dollar was last down 1.1% at 142.40 yen. It hit a low of 140.31 after the intervention, having earlier reached a fresh 24-year peak of 145.9 yen. The spread between the day’s high and low for the pair was the widest since June 2016.

The euro, Australian dollar and pound also plunged against the Japanese currency, before regaining a little ground.

The Japanese yen jumped across the board on Thursday after monetary authorities intervened in the foreign exchange market to boost the battered currency for the first time since 1998, although analysts said Japan may struggle to keep the yen strong for long.

Confirmation of the intervention came just hours after the BOJ decided to maintain low interest rates to support the country’s fragile economic recovery.

Stocks on Thursday posted their third straight daily decline, as mounting fears that the Federal Reserve’s aggressive rate hikes will push the economy into a recession dented risk appetite for investors.

The S&P 500 slid 0.8% to 3,757.99, while the Nasdaq Composite shed 1.4% to 11,066.81. The Dow Jones Industrial Average closed 107.10 points lower, or 0.3%, at 30,076.68.

Thursday’s session left the major averages on pace to close the week with losses. The Dow is down about 2.42% week to date, while the S&P and Nasdaq have tumbled 3% and 3.3%, respectively. The S&P and Dow closed Thursday 2.5% and 0.5% off their recent lows.

Bond yields surged again on Thursday, with the yields on the 10-year and 2-year Treasury notes notching fresh multiyear highs, hitting their highest levels since February 2011 and October 2007, respectively.

Oil rose on Thursday in volatile trading focused on Russian oil supply concerns and as the Bank of England hiked interest rates less than some had expected.

Brent crude futures were up 75 cents, or 0.8%, at$90.58 per barrel by 12:17 p.m. EDT (1617 GMT), after rising by more than $2 earlier in the session.

U.S. West Texas Intermediate (WTI) crude was up 75 cents, or 0.8%, at $83.69, after rising by more than $3 earlier in the session.

Gold prices edged lower in choppy trading on Thursday, pressured by a stronger dollar and higher Treasury yields, while the U.S. Federal Reserve’s hawkish policy stance clouded the outlook for non-yielding bullion.

Spot gold was down .2% at $1,671.10 per ounce, after shedding more than 1% earlier in the session.

The pan-European Stoxx 600 closed down 1.8% with all sectors and major bourses in negative territory except banks and basic resources, which were flat.