* Euro zone bond yields hit 15-year high as inflation fears grow. * ECB and BoE rate hikes likely in April, markets show. * Energy importers like Italy face greater bond yield pressure. * Spain proposes 5-billion euro package to cushion energy impact. By Amanda Cooper.
President Donald Trump has spent months aggressively pushing Federal Reserve Chairman Jerome Powell to cut interest rates. A rate hike. Short-term interest-rate futures are now pricing chances of a Federal Reserve rate hike before the end of the year. The Iran war has not just reversed that assumption ? it has flipped it.
* Major brokerages see greater chance of hikes for BoE and ECB this year. * Markets starting to price in potential for Fed hikes. * Oil prices remain choppy. By Chuck Mikolajczak.
* US dollar and Treasury yields extend gains. * Silver, platinum and palladium head for weekly fall. By Ashitha Shivaprasad. Gold prices fell nearly 2% on Friday as the dollar strengthened after reports that the U.S. will deploy thousands of additional troops in the Middle East, further fanning concerns of higher oil prices, inflation, and with it, elevated interest rates.
Some states and local governments "went on spending sprees" with pandemic funds and "got ratings upgrades that didn't have a lot to do with fiscal management," said an investor.
* Fed officials express caution due to Iran war's impact on energy prices. * Bowman advocates for more interest rate cuts to support labor market. * Iran war uncertainty affects Fed's economic, policy outlook. By Michael S. Derby and Howard Schneider.
* Indexes off: Dow 0.24%, S&P 500 0.71%, Nasdaq 1.17% * Trump mulls Kharg Island takeover, report says. * Main indexes on track for fourth-straight weekly loss. * FedEx (FDX) up on strong forecast; Amazon (AMZN) plans smartphone comeback. By Johann M Cherian and Utkarsh Hathi.
Bitcoin is back at $70,000 on weakening bullish momentum, setting up a key test for its next move. Prominent analyst Trader Mayne on Friday said rising geopolitical tensions and the aftermath of recent Federal Reserve policy decisions are driving volatility across crypto markets. He noted that macro conditions remain critical.
Kraft Heinz Canada said on Friday it will invest C$250 million to modernize its Montreal-based manufacturing plant, as the company looks to ramp up production of its staple food products in the region.
Traders of short-term interest-rate contracts on Friday priced in a better-than-even chance of a Federal Reserve interest-rate hike in December, a dramatic shift from expectations earlier this week of a rate cut.
On behalf of Price Holdings LLC, a Price Brothers affiliate, Northmarq has secured a $512 million Freddie Mac credit facility to refinance and recapitalize a 13?property multifamily portfolio spanning the Kansas City and Dallas metro areas. ?In today?s competitive and ever-changing multifamily markets, sponsors need certainty of execution and optionality more than ever,? said Duvall.
Federal Reserve Vice Chair for Supervision Michelle Bowman said Friday that the U.S. central bank is taking another look at what went wrong with Silicon Valley Bank three years ago. "What happened there was really a failure of supervision and a failure of bank management," Bowman said in an interview on Fox Business Network's "Mornings with Maria".
Federal Reserve Vice Chair for Supervision Michelle Bowman said Friday that the U.S. central bank is taking another look at what went wrong with Silicon Valley Bank three years ago. "What happened there was really a failure of supervision and a failure of bank management," Bowman said in an interview on Fox Business Network's "Mornings with Maria".
* Spot gold hit its lowest level since February 2 on Thursday. * Silver, platinum and palladium head for weekly fall. By Ashitha Shivaprasad. Gold prices firmed on Friday but remained on course for a third consecutive weekly decline, due to expectations of a hawkish stance from major central banks amid inflationary risks spurred by the Middle East conflict.
Gold rose off a two-month low early Friday, rebounding despite a higher dollar, rising treasury yields and dimming hopes for lower interest rates. Gold for April delivery was last seen up $69.60 to US$4,675.60 per ounce, after falling to the lowest since Jan. 16 a day earlier.
Brazil's former Finance Minister Fernando Haddad said on Friday that President Luiz Inacio Lula da Silva has yet to choose candidates for two vacant seats on the central bank's board, and that he does not know what criteria will guide the picks.
U.S. equity funds witnessed the largest weekly net sales in nearly 2-1/2 months in the week to March 18 as expectations of higher oil prices, a hotter-than-expected inflation reading and the Federal Reserve's cautious stance dampened hopes for rate cuts this year.
According to Oskar Stone over at Desjardins, retail sales for the first two months of the year were "surprisingly strong", despite adverse weather conditions in parts of the country. Stone noted headline retail sales rose 1.1% in January, with a rebound in auto sales an important catalyst.
According to Oskar Stone over at RBC, retail sales for the first two months of the year were "surprisingly strong", despite adverse weather conditions in parts of the country. Stone noted headline retail sales rose 1.1% in January, with a rebound in auto sales an important catalyst.
U.S. Federal Reserve Governor Christopher Waller said he was planning to dissent in favor of a rate cut at this week's meeting of the central bank because of unexpected job losses in February, but a developing oil shock and the threat of more persistent inflation convinced him a more cautious approach is needed until the impact of the Iran war becomes clearer.
* Traders move to price in hikes for BoE and ECB this year. * Fed seen leaving rates on hold. * Oil prices, shares remain choppy. By Sophie Kiderlin and Rae Wee. Global shares and the dollar nudged higher on Friday but were set for weekly losses while bonds remained under pressure as central banks warned that the Iran war could reignite inflation.
Federal Reserve Vice Chair for Supervision Michelle Bowman said Friday that the U.S. central bank is taking another look at what went wrong with Silicon Valley Bank three years ago. "What happened there was really a failure of supervision and a failure of bank management," Bowman said in an interview on Fox Business Network.
Two Federal Reserve officials said on Friday the Iran war and its impact on energy markets were clouding the outlook for the economy and monetary policy, as one policymaker laid out an outlook calling for notably more interest rate cuts than most U.S. central bank officials currently support.
Federal Reserve Vice Chair for Supervision Michelle Bowman said Friday she sees a series of interest rate cuts happening this year amid concerns about labor market softness. "I'm still concerned about...the job market," Bowman said in an interview on the Fox Business Network.
Global equity funds saw the biggest weekly selloff in three months in the week through March 18 as investors cut risk exposure ahead of major central bank meetings amid concerns over inflation and the economic fallout from the U.S.-Israeli conflict with Iran.
Global equity funds saw the biggest weekly selloff in three months in the week through March 18 as investors cut risk exposure ahead of major central bank meetings amid concerns over inflation and the economic fallout from the U.S.-Israeli conflict with Iran.
Russia's central bank Friday said its Russia Board of Directors decided to cut the key rate by 50 basis points to 15.00%, as expected. CBR is widely expected by analysts to deliver a 50bps rate cut on Friday, extending its 'symbolic' monetary easing cycle while maintaining a fundamentally cautious stance, wrote Commerzbank in a note before the policy decision.
* Middle East conflict makes central banks cautious. * Euro, yen, sterling gain against dollar as energy prices rise. * Fed not expected to raise rate this year. By Jiaxing Li and Samuel Indyk.
* ECB cites inflation risks, may discuss hikes. * Major banks now expect ECB April hike. * Italian bonds under pressure due to energy dependence, yields rise. By Amanda Cooper.
* Sterling lower, still set for weekly rise. * Markets price at least three BoE hikes. * Oil prices provide direction. By Samuel Indyk. The British pound fell on Friday, as oil prices resumed their upward trend, but stayed on course for a weekly rise after the Bank of England raised expectations of rate hikes this year.
Any prolongation of the Iran war risks creating an unprecedented crisis in energy supplies that sooner or later will hit every corner of the global economy. But it is already clear that some countries are either more exposed to that impact or less able to deal with it. THE G7 BIG ECONOMIES. Look first to Europe. GERMANY - Its industry-heavy economy has more to lose from costlier energy.
Any prolongation of the Iran war risks creating an unprecedented crisis in energy supplies that sooner or later will hit every corner of the global economy. But it is already clear that some countries are either more exposed to that impact or less able to deal with it. THE G7 BIG ECONOMIES. Look first to Europe. GERMANY - Its industry-heavy economy has more to lose from costlier energy.
Three weeks ago, there was a diverse range of outlooks for developed market central banks, said National Bank of Canada. For some, rate stability was expected -- such as the European Central Bank and the Bank of Canada -- while others were primed for modest tightening -- for example, the Reserve Bank of Australia -- or easing, noted the bank.
* Futures off: Dow 0.52%, S&P 500 0.59%, Nasdaq 0.82% U.S. stock index futures slipped in choppy trading on Friday as the Iran war approached its fourth week, roiling energy markets and prompting investors to aggressively reprice bets on interest rate cuts by the U.S. Federal Reserve.
Aluminium and copper prices extended losses on Friday after news that the U.S. was sending thousands of more troops to the Middle East boosted the dollar and fuelled worries that a prolonged conflict and surging oil prices will hurt economic growth and metals demand.
March 20 - Everything Mike Dolan and the ROI team are excited to read, watch and listen to over the weekend. From the Editor. Hello Morning Bid readers! We are now officially in the doomsday scenario for energy markets. * What might a strong dollar surprise mean for global growth and corporate earnings? * Can Asia's earnings boom survive the Middle East stress test?
* Traders scale back Fed rate cut expectations. * Iran and Israel launch fresh attacks on each other. * Gold lost over 6% this week. By Pablo Sinha. Gold prices rose on Friday on bargain hunting, but remained poised for a third straight weekly drop as signals of a hawkish U.S. Federal Reserve tempered non-yielding bullion's appeal.
The European Central Bank opted for a cautious tone in light of energy price volatility on Thursday, but President Christine Lagarde's press conference had a hawkish undertone as she conveyed a sense of heightened concern for upside risks to inflation, said ING.
Federal Reserve Chair Jerome Powell's upcoming decision on whether to keep his seat on the U.S. central bank's Board of Governors after his leadership term ends is now a key factor in how the tenure of his would-be successor Kevin Warsh evolves, and whether President Donald Trump and Treasury Secretary Scott Bessent can pursue any overhaul of the Fed's structure, operations and monetary policy.
* Middle East developments expected to dominate markets. * Oil surge, rising Treasury yields in focus. * Investors watch technical levels as S&P 500 drops below key trendline. By Lewis Krauskopf. A Middle East crisis that has convulsed markets should remain the focal point for Wall Street in the near term, as investors stay glued to developments in Iran and the fallout from surging energy prices.
* Traders move to price in hikes for BoE and ECB this year. * Fed seen leaving rates on hold. * Hawkish rate repricing hits bonds. * Oil prices, shares remain choppy. By Sophie Kiderlin and Rae Wee.
* Middle East conflict makes central banks cautious. * Euro, yen, sterling gain against dollar as energy prices rise. * Fed not expected to raise rate this year. By Jiaxing Li and Samuel Indyk.
Copper was set to log its steepest weekly loss in nearly a year on Friday, as the Middle East war stoked fears of higher inflation and slower global growth amid surging oil prices. The most active copper contract on the Shanghai Futures Exchange ended daytime trading 1.12% lower at 94,780 yuan, down 6.05% for the week.
* ECB cites inflation risks, may discuss hikes. * Major banks now expect ECB April hike. * Italian bonds under pressure due to energy dependence, yields rise. By Amanda Cooper.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Log In Required
Publication Date