Macro Roundup (Sep 15)

SHANGHAI, Sep 15 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The dollar slipped on Monday against its major peers, dropping to a two-week low versus the yen, as positive news about a COVID-19 vaccine and a wave of merger and acquisition deals lifted the mood in global equity markets.

On Wall Street, fresh off its worst week since March, the Nasdaq Composite led the way with a 1.9% gain as major tech stocks found their footing. The Dow and S&P 500 both gained more than 1% as well, with advancing stocks outnumbering declining ones nearly 5-to-1 on the New York Stock Exchange.

Stocks received a boost from news that Phase III trials of AstraZeneca’s coronavirus vaccine have resumed in the UK after trials were halted last week over safety concerns. The news raises hope that one of the leading candidates in the global race to develop a vaccine which can stem the pandemic is back on track.

Oil prices slipped slightly on Monday amid concerns about a stalled global economic recovery and with Libya poised to resume production, and failed to get support from an impending storm which has disrupted US oil output.

The Organization of the Petroleum Exporting Countries said on Monday that world oil demand would tumble by 9.46 million barrels per day (bpd) this year, a sharper decline than it predicted in a report a month ago.

In Libya, commander Khalifa Haftar committed to ending a months-long blockade of oil facilities, a move that would add more supplies to the market.

Gold jumped about 1% on Monday as the dollar weakened, while expectations around the US Federal Reserve maintaining its dovish monetary policy this week further boosted the safe haven metal’s allure.

On the data front, euro zone industrial production grew by 4.1% month-on-month in July, showing a slowing down of the bloc’s expected rebound in industrial output.

Investor focus on Tuesday will likely be on Chinese economic data releases for August expected to be out at around 10:00 a.m. HK/SIN. That includes industrial production, fixed asset investment as well as retail sales.

Investors also looked ahead to an event-packed week which includes a Federal Reserve meeting and the appointment of a new Japanese premier.

Here’s a look at what’s on tap:

China: Fixed asset investment, industrial production, retail sales data for August at 10:00 a.m. HK/SIN

Eurozone: German ZEW Economic Sentiment for September and Eurozone ZEW Economic Sentiment for September

US: New York Fed’s Empire State Manufacturing Survey index for September, August industrial production