- U.S. bond funds attracted inflows for a 16th straight week in the week ended Sept. 18, on expectations that the Federal Reserve would deliver an outsized rate cut in its meeting during the week. According to LSEG data, investors bought a net $6.76 billion worth of US bond funds during the week, registering the highest weekly inflow in three weeks.
Wall Street's main indexes opened slightly lower on Friday as investors held back after a jump in the previous session that was sparked by an oversized interest rate cut by the Federal Reserve.
U.S. bond funds attracted inflows for a 16th straight week in the week ended Sept. 18, on expectations that the Federal Reserve would deliver an outsized rate cut in its meeting during the week. According to LSEG data, investors bought a net $6.76 billion worth of US bond funds during the week, registering the highest weekly inflow in three weeks.
The U.S Federal Reserve's blackout period on public comment around meetings of the central bank lifts on Friday after a key rate decision earlier in the week, with Governor Chris Waller scheduled for an 11:30 a.m. EDT appearance on CNBC.
* Poll: Fed to cut rates by 25 bps in Nov and Dec. * FedEx (FDX) falls on quarterly profit drop, forecast trim. * Nike (NKE) jumps after appointing new CEO. * Futures: Dow up 0.07%, S&P 500 down 0.13%, Nasdaq off 0.15% By Johann M Cherian and Purvi Agarwal.
- Global investors scooped up equity funds in the week to Sept. 18, anticipating the Federal Reserve's interest rate cut to initiate its long-awaited reduction cycle. According to LSEG data, investors acquired a net $5.21 billion worth of equity funds during the week following $6.54 billion worth of net purchases in the week before.
Global investors scooped up equity funds in the week to Sept. 18, anticipating the Federal Reserve's interest rate cut to initiate its long-awaited reduction cycle. According to LSEG data, investors acquired a net $5.21 billion worth of equity funds during the week following $6.54 billion worth of net purchases in the week before.
The U.S. Federal Reserve will cut the federal funds rate by 25 basis points in both November and December, according to a strong majority of over 100 economists in a snap Reuters poll.
The U.S. Federal Reserve will cut the federal funds rate by 25 basis points in both November and December, according to a strong majority of over 100 economists in a snap Reuters poll.
Morgan Stanley on Friday downgraded earnings estimates for computer chip equipment maker ASML, the latest brokerage to do so following weakness in the memory chip market and concerns over demand from Chinese chipmakers and Intel (INTC). MS followed UBS and Deutsche Bank in cutting estimates and reducing share price targets for ASML after the company's share price slid 30% in July and August.
Bank of Canada Governor Tiff Macklem on Friday said adoption of artificial intelligence by businesses could add to price pressures in the short term by boosting demand, even though its full effects would not be visible any time soon. Macklem said strong investment in AI technologies was already boosting the economy and noted surging electricity demand as new data centers are built.
* FedEx (FDX) falls on quarterly profit drop, forecast trim. * Nike (NKE) jumps after appointing new CEO. * Futures slip: Dow 0.02%, S&P 500 0.31%, Nasdaq 0.50% By Johann M Cherian and Purvi Agarwal.
The yen weakened on Friday after the Bank of Japan signalled it was in no rush to raise interest rates again after keeping them steady at 0.25% as widely expected. The dollar rose 1.2% to 144.32 yen, reaching its highest level in a little over two weeks, as Governor Kazuo Ueda said the BoJ could afford to spend time eyeing the fallout from global economic uncertainties.
Indian government bond yields rose marginally on Friday but ended lower for the week, after the U.S. Federal Reserve delivered a super-sized interest rate cut, boosting investor sentiment. The benchmark 10-year yield ended at 6.7626%, compared to its previous close of 6.7577%, as traders booked profits after the recent sharp fall.
Central Europe's currencies
steadied against the euro on Friday, with the Hungarian forint
and Czech crown holding near recent levels ahead of central bank
policy meetings next week that may ...
- Wall Street's main indexes opened slightly lower on Friday as investors held back after a jump in the previous session that was sparked by an oversized interest rate cut by the Federal Reserve.
- Wall Street's main indexes opened slightly lower on Friday as investors held back after a jump in the previous session that was sparked by an oversized interest rate cut by the Federal Reserve.
* Futures: Dow dips 0.03%, S&P 500 down 0.24%, Nasdaq off 0.37% U.S. stock index futures edged lower on Friday, taking a pause from the previous session's rally that set Wall Street's main indexes on track for weekly gains after the Federal Reserve took a pivotal stance on monetary policy earlier in the week.
Just a week ago, before deadly floods swept through central Europe, the Czech Republic looked on track to become the first country in the region since COVID-19 to pull its budget deficit firmly below the 3% of GDP cap set by European Union rules.
Euro zone government bond yields edged up on Friday as investors shifted their focus to economic data next week after pricing the outcome of the Federal Reserve policy meeting. Risky assets rallied after the Fed as investors expected rates to fall further and the U.S. central bank to be close to winning its battle against inflation while engineering a soft landing for the U.S. economy.
STOCKS: The benchmark BSE Sensex was up 0.1% to 84005, while the broader NSE index also advanced 1.5% to 25805, with both the indices hitting record highs, as an outsized interest rate reduction by the U.S. Federal Reserve and the anticipation of a soft landing boosted risk appetite.
A look at the day ahead in U.S. and global markets from Mike Dolan. After a roaring Thursday that saw Wall Street stocks lap up deep Federal Reserve easing into a still-healthy economy, there's a modest step back today and an eye on other central banks choosing to stand pat for now.
-Investment advisers are urging clients to dump hefty cash allocations now that the Federal Reserve has begun its much-anticipated interest-rate easing, a process they expect to limit the appeal of money-market funds in the coming months.
A look at the day ahead in U.S. and global markets from Mike Dolan After a roaring Thursday that saw Wall Street stocks lap up deep Federal Reserve easing into a still-healthy economy, there's a modest step back today and an eye on other central banks choosing to stand pat for now.
* Retail money-market funds have attracted $951 billion in inflows since 2022. * Fed cut federal funds rate by 50 basis points to 4.75%-5% * Investors may need to shift to riskier assets for better returns. By Suzanne McGee and Carolina Mandl.
* China unexpectedly leaves lending rates steady. * Sri Lanka dollar bonds slip ahead of Saturday election. * India, Pakistan stocks touch record highs. * Stocks up 0.7%, FX flat after touching record high. By Ankika Biswas.
-Shares of FedEx (FDX) slumped 13% on Friday after the parcel giant's dismal first-quarter results, in what analysts attributed to a combination of broader economic concerns and an unfavorable shift in the company's sales away from higher-priced deliveries. FedEx (FDX), as a shipping giant, is often seen as a barometer for global economic trade and growth.
The yen weakened on Friday after the Bank of Japan signalled it would be judicious about further policy tightening, with its governor refraining from giving clear indications as to whether a hike in interest rates was on the cards in the coming months.
Greece's current account surplus shrank in July compared to the same month a year ago as imports outpaced exports, central bank data showed on Friday. According to the Bank of Greece figures, the current account surplus was 246 million euros in July versus a surplus of 847 million euros in the same month a year ago.
Greece's current account surplus shrank in July compared to the same month a year ago, central bank data showed on Friday. According to the Bank of Greece figures, the current account surplus was 246 million euros in July versus a surplus of 847 million euros in the same month a year ago.
Prime Minister Keir Starmer's warnings about the state of the British economy and the likely need for tax increases in next month's budget have caused consumer confidence to plunge this month, according to a survey published on Friday. The GfK Consumer Confidence Index dropped to a six-month low of -20 in September from August's -13, which was the joint-highest in nearly three years.
More interest rate cuts are set to come in Switzerland and Sweden after a supersized Federal Reserve rate move, with U.S. inflation data and global business activity surveys charting the pressure ahead. In politics, Japan's ruling party is picking its next leader, who will become prime minister, and Sri Lankan voters are choosing a president.
STOCKS: The benchmark BSE Sensex was up 1.5% to 84420, while the broader NSE index also advanced 1.4% to 25774, with both the indices hitting record highs, as an outsized interest rate reduction by the U.S. Federal Reserve and the anticipation of a soft landing boosted risk appetite.
Euro zone government bond yields were on track to end the week slightly higher as the U.S. Federal Reserve policy meeting and jobs data fuelled appetite for risky assets. Investors expect rates to fall further as the Fed won its battle against inflation. German 10-year Bund yields were flat at 2.19%, and on track to end the week four basis points higher. Bond prices move inversely with yields.
The Bank of Japan kept interest rates steady on Friday and revised up its assessment on consumption, signalling its confidence a solid economic recovery would allow the central bank to raise interest rates again in coming months.
Japan's Nikkei share average rose on Friday and logged its best week since mid-August, but gains were capped as the yen strengthened after the Bank of Japan set the stage for future interest rate hikes. The tech-heavy Nikkei ended the day up 1.53% at 37,723.91, with chip-sector stocks rallying in line with their U.S. peers.
-The Bank of Japan kept interest rates steady on Friday and revised up its assessment on consumption, signalling its confidence a solid economic recovery will allow the central bank to raise interest rates again in coming months. As widely expected, the BOJ kept short-term interest rates steady at 0.25% at a two-day meeting that ended on Friday.
The Bank of Japan kept interest rates steady on Friday and revised up its assessment on consumption, signalling its confidence a solid economic recovery will allow the central bank to raise interest rates again in coming months. As widely expected, the BOJ kept short-term interest rates steady at 0.25% at a two-day meeting that ended on Friday.
* Chinese shares drop, yuan hits 16-month highs. * China unexpectedly holds rates steady. * BOJ stands pat on rates, as widely expected. * Focus on Ueda briefing at 0630 GMT. By Stella Qiu.
Tight monetary policy coupled with a penny-pinching fiscal agenda usually results in currency appreciation, and sterling is surging on the prospect. This week's BoE decision to hold off on its second interest rate cut of the year was billed by many central bank watchers as an expected "non-event".
* Mixue, Guming and Auntea sought IPO approvals earlier this year. * Regulatory caution stems from poor performance of listed peers-sources. * Chabaidao dropped nearly 27% on Hong Kong debut in April. * Move highlights tighter scrutiny of offshore Chinese IPOs. By Julie Zhu, Scott Murdoch and Kane Wu.
The yen pared its losses on Friday as the Bank of Japan sounded optimistic about growth and signalled it will be judicious about further policy tightening, while the dollar had its own problems as markets priced in more rapid U.S. rate cuts. It has been a tough week for the yen, with the euro gaining 2.2% to 159.46 as speculators booked profit on recent long yen positions.
As the Federal Reserve kicks off a long-awaited rate cutting cycle, some investors are wary that richly valued U.S. stocks may have already priced in the benefits of easier monetary policy, making it harder for markets to rise much further.
As the Federal Reserve kicks off a long-awaited rate cutting cycle, some investors are wary that richly valued U.S. stocks may have already priced in the benefits of easier monetary policy, making it harder for markets to rise much further.
Shares in India's IIFL Finance jumped about 13% on Friday, after the country's central bank lifted restrictions on the non-banking financial company's gold loan business, removing a key overhang on its financials and stock. Shares rose as much as 13.2% to 560.95 rupees, their highest since late February.
A look at the day ahead in European and global markets from Wayne Cole. It was left to the Bank of Japan to end "central banker week" by doing nothing on rates, though it did bring the yen into sharper focus.
A look at the day ahead in European and global markets from Wayne Cole. It was left to the Bank of Japan to end "central banker week" by doing nothing on rates, though it did bring the yen into sharper focus.
Asian shares extended their rally on Friday, bathing in the afterglow of an outsized interest rate cut in the United States, while the yen edged higher as the Bank of Japan held rates steady and stayed upbeat on the economy. In China, the central bank kept its benchmark lending rates on hold, countering expectations for a move lower.
Australia's central bank will keep its key policy interest rate unchanged on Tuesday and for the rest of the year amid elevated price pressures, according to economists polled by Reuters, with most expecting the first reduction early next year. Inflation slowed to 3.5% in July but was still above the Reserve Bank of Australia's 2%-3% target range.
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.
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