August 15, 2022
Dollar Gains, Futures Slip as China Clouds Outlook: Markets Wrap
U.S. equity-index futures slipped, the dollar gained and commodities from oil to iron ore tumbled as disappointing data from China further clouded the outlook for the global economy.
Contracts on both the S&P 500 and Nasdaq 100 were lower, suggesting a four-week stocks rally may stall when US markets open. Treasury yields fell and the bond curve remained deeply inverted, pointing to worries that the Federal Reserve’s campaign of monetary tightening against high inflation will spark a US recession. The latest New York state manufacturing data added to those concerns.
German Refinery Reliant on Russia Is Now Using Oil From the US
Germany’s Schwedt oil refinery has started processing US crude blended with Russian Urals, according to a person familiar with the matter.
US crude brought in from Rostock on Germany’s Baltic coast currently accounts for about 20% of what the refinery is processing, the person said. The port recently took delivery of its first cargo of US oil in at least half a decade. Operator PCK couldn’t immediately be reached by phone for comment.
China Woes Grant Dollar Bulls Reprieve From Recent Weakness
China’s worsening economic outlook may supercharge demand for the world’s safest assets, of which the dollar is likely to be the top beneficiary.
That’s according to strategists who reckon investors could double down on long greenback bets against the yuan and other emerging currencies as jitters around a Chinese downturn spur funds to dial back on risk.
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