SHANGHAI, Aug 31 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.
The dollar stabilized after falling to two-week lows on Monday as the greenback attempted to recover from Friday’s drop on comments from US Federal Reserve Chair Jerome Powell that were interpreted as dovish.
The dollar had one of its biggest daily percentage declines of the month on Friday after Powell said tapering could begin this year, but the central bank was in no hurry to raise interest rates.
The dollar index hit a two-week low at 92.595 before firming slightly, and was unchanged at 92.69 by 3:17 p.m. ET
“The market is still digesting Powell’s dovish tapering speech and you are probably seeing the market is a little confused that Treasury yields are not getting the go-ahead for lift-off here, and that is going to be data dependent on everything with inflation and the job markets,” said Edward Moya, senior market analyst at OANDA in New York.
On Wall Street, stock futures rose slightly in overnight trading on Monday as the S&P 500 looks to wrap up its seventh straight month of gains at a record high.
Futures on the Dow Jones Industrial Average gained 40 points. S&P 500 futures edged up 0.1% and Nasdaq 100 futures were flat.
Zoom shares fell more than 11% in after-hours trading on Monday after the video-conferencing software company showed slowing revenue growth in the second quarter. The drop in shares came even as Zoom’s earnings beat estimates and the company raised full-year guidance as the pandemic took a turn for the worse.
Oil edged higher on Monday, but remained below session highs as Hurricane Ida weakened to tropical storm status after forcing shutdowns of US Gulf oil production, and OPEC+ looked set to go ahead with a planned oil output increase.
Within 12 hours of coming ashore, the storm had weakened into a Category 1 hurricane, and has since dropped to tropical storm status. Hundreds of oil production platforms were evacuated ahead of the storm and nearly all offshore Gulf oil production, or 1.74 million barrels per day, was suspended.
After heavy winds and rains, nearly 1.2 million homes and businesses in Louisiana and Mississippi were without power on Monday and the storm’s move inland shifted the oil market’s focus to when refiners can restart and produce fuels.
Exxon Mobil Corp said on Monday it is shutting the 520,000 barrel-per-day (bpd) Baton Rouge, Louisiana, refinery units until utilities resume providing power and feedstocks are available.
Gold prices slipped, after touching a near a four-week high earlier on Monday, as the dollar ticked up from its lows and investors showed caution in the run-up to the release of a key US jobs report later in the week.
Spot gold fell 0.4% to $1,808.67 per ounce by 1:33 p.m. ET after touching its highest level since Aug. 4. US gold futures settled down 0.4% at $1,812.2.
Gold initially rose on Monday in the wake of US Federal Reserve Chair Jerome Powell’s speech to the annual Jackson Hole economic conference on Friday.
However, gold then fell as the dollar index, which had slipped to nearly a two-week low in the wake of Powell’s speech, attempted a rebound.
European stocks traded around the flatline on Monday after euro zone data disappointed investors.
Euro zone economic sentiment eased more than expected in August from a record high in July, data showed.
U.K. markets are closed for a public holiday.
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