Macro Roundup (Sep 30)

SHANGHAI, Sep 30 —This is a roundup of global macroeconomic news last night and what is expected today.

Sterling rose sharply in volatile trading on Thursday, rallying from record lows hit on Monday, after the Bank of England conducted a second day of bond buying to stabilize financial markets.

The pound posted its largest one-day percentage gain since March 2020 and last traded at $1.1076, up 1.8%. After hitting an all-time trough of $1.0327 three days ago, sterling has rallied more than 7% against the dollar.

The dollar, on the other hand, fell against a basket of major currencies. It was last down 0.4% at 112.148.

The euro rose 0.7% against the dollar to $0.9804.

Data showed euro zone economic sentiment fell sharply and by more than expected in September as confidence dropped among companies and consumers, who are also downbeat about price trends in the coming months.

Stock futures were up slightly Thursday evening following a sharp sell-off that brought the S&P 500 to a new 2022 low.

Futures for the S&P 500 were up 0.26%. The Dow Jones Industrial Average futures were up 0.17%. Nasdaq 100 futures were up 0.14%.

The 2022 sell-off resumed in full force during regular trading on Thursday as investors weighed concerns over future rate-hiking decisions from the Federal Reserve and the impact on the market.

At the end of regular trading on Thursday, the S&P 500 dropped 2.1% to 3,640.47. The Dow was down 1.54% to 29,225.61, while the Nasdaq Composite fell 2.84% to 10,737.51.

Oil prices dropped after touching the $90 per barrel mark on Thursday as traders awaited clarity on potential OPEC+ cuts next week and as the dollar eased off 20-year highs.

Brent crude futures settled at $88.49 per barrel for a loss of 0.9%, after earlier rising as high as $90.12. U.S. crude futures for November ended the day 1.1% lower at $81.23 per barrel.

Leading members of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have begun discussions about an oil output cut at their next meeting on Oct. 5, three sources told Reuters.

Gold prices were largely flat on Thursday as elevated Treasury yields and concerns over the U.S. Federal Reserve’s aggressive monetary policy pressured bullion, but a drop in the U.S. dollar supported the precious metal.

Spot gold was little changed at $1,659.09 per ounce, having slid over 1% to $1,640.30 earlier.

U.S. gold futures settled 0.1% lower at $1,668.60.

The pan-European Stoxx 600 provisionally closed down 1.8%, with auto stocks dropping 5% to lead losses as all major bourses slid into negative territory. Only the basic resources sector gained, closing up 0.5%.