Macro Roundup (Oct 25)

SHANGHAI, Oct 25 —This is a roundup of global macroeconomic news night and what is expected today.

The dollar edged higher on Monday despite another suspected foreign exchange intervention by Japan, while sterling was choppy after Rishi Sunak was picked to become Britain’s third prime minister in the last seven weeks, and China’s offshore yuan fell to a record low.

The dollar held firm after the suspected BOJ intervention, but weakened, briefly turning negative, after S&P flash PMI data showed U.S. business activity contracting for a fourth straight month in October, the latest evidence of an economy softening in the face of high inflation and rising interest rates.

The data may indicate that the dollar’s strong run is nearing its end, said Edward Moya, senior market analyst at OANDA.

The market is now waiting to see how much the economy is weakening and if the Fed will pause after hiking rates in December and February, Moya said.

The dollar was last up 0.01% at 112.02 against a basket of six peer currencies.

Stock futures were flat in overnight trading Monday as investors looked ahead to big technology earnings for further clues into the health of the U.S. economy.

Futures tied to the Dow Jones Industrial Average traded marginally higher, while S&P 500 and Nasdaq 100 futures added 0.09% and 0.02%, respectively.

Stocks built on Friday’s gains during Monday’s regular trading session, with the Dow Jones Industrial Average rising 417.06 points, or 1.3%, to close at 31,499.62. The Nasdaq Composite finished 0.9% higher and the S&P 500 added roughly 1.2%, with nine of 11 sectors finishing higher, led by health care.

Oil were lower in choppy trade on Monday as data showing demand from China remained lackluster in September and a strong U.S. dollar weighed, while weakening U.S. business activity data eased expectations for more aggressive interest rate hikes and limited price decline.

Brent crude futures for December delivery were down 3 cents, 0.03%, at $93.47 a barrel, after rising 2% last week. U.S. West Texas Intermediate crude lost 20 cents, 0.24%, at $84.85 a barrel. Both benchmarks had fallen by $2 a barrel earlier in the session.

Gold prices slipped on Monday, weighed down by a firm dollar and elevated U.S. bond yields, while expectations of another hefty rate hike by the Federal Reserve kept investors on the sidelines.

Spot gold last fell 0.45% to $1,649.15per ounce. U.S. gold futures fell 0.17% to $1,653.50.

The Stoxx 600 provisionally closed up 1.4%, with all sectors and major bourses in positive territory. Utilities, construction, retail and media stocks all added more than 2%.