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Macro Roundup (Sep 27)
Sep 27, 2022 09:30CST
Source:SMM
The British pound plunged to a record low on Monday morning in Asia, following last week’s announcement by the new U.K. government that it would implement tax cuts and investment incentives to boost growth.

SHANGHAI, Sep 27 —This is a roundup of global macroeconomic news last night and what is expected today.

The British pound plunged to a record low on Monday morning in Asia, following last week’s announcement by the new U.K. government that it would implement tax cuts and investment incentives to boost growth.

Sterling briefly fell 4% to an all-time low of $1.0382 on Monday, continuing its sluggish trade in recent months as the U.S. dollar strengthens. The U.K. currency last traded down about 1.5% $1.069 against the greenback.

Critics say those economic measures will disproportionately benefit the wealthy and could see the U.K. take on high levels of debt at a time of rising interest rates.

Stock futures were little changed on Monday evening after the market started the week by continuing its dramatic September decline.

S&P 500 futures and Nasdaq 100 futures up by less than 0.1%. Those tied to the Dow Jones Industrial Average rose 33 points, or about 0.1%.

The move in futures comes after five straight days of losses for stocks, with the S&P 500 Monday closing at its lowest level of 2022. The Dow dropped more than 300 points on Monday, putting it in a bear market after falling more than 20% below its record high.

On Tuesday, investors will get several new pieces of economic data, including September consumer confidence, August durable goods orders and July home prices. Wall Street has grown increasingly concerned that the Fed’s six-month-long inflation fight will push the economy into a recession.

Brent crude fell below $85 a barrel Monday, as recession fears weighed and the U.S. dollar surged.

Brent futures for November settlement shed 2.1% to trade at $84.32 per barrel around 1:20 p.m. on Wall Street. West Texas Intermediate futures fell 2.3% to trade at $76.97 per barrel, a price last seen in early January.

The U.S. dollar surged to a high not seen since 2002 Monday, while sterling tumbled to a record low against the currency.

On Friday, both Brent and WTI futures fell around 5%.

Gold prices hovered near a 2-1/2-year low on Monday, on higher Treasury yields and a stronger dollar, while jitters over rising U.S. interest rates dented appeal for non-yielding bullion.

Spot gold was down 1.2% at $1,623.59 per ounce, after dropping to its lowest price since April 2020 at $1,626.41.

U.S. gold futures dropped 1.5% to $1,631.40.

Higher U.S. interest rates dull zero-yielding bullion’s appeal, while bolstering the dollar and bond yields.

The pan-European Stoxx 600 provisionally ended down 0.4%, having earlier fallen more than 0.8%. Utilities dropped 2.3% while travel stocks added over 2%.

Macro

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