Japanese Prime Minister Shigeru Ishiba said on Saturday he would not intervene in monetary policy affairs, as the central bank is mandated to achieve price stability. "It's important to avoid vocally intervening" in monetary policy affairs, or appear as if he was doing so, Ishiba said in a news conference gathering leaders of major parties ahead of the Oct. 27 general election.
Japanese Prime Minister Shigeru Ishiba said on Saturday he would not intervene in monetary policy affairs, as the central bank is mandated to achieve price stability. "It's important to avoid vocally intervening" in monetary policy affairs, or appear as if he was doing so, Ishiba said in a news conference gathering leaders of major parties ahead of the Oct. 27 general election.
* China finance ministry says will ramp up debt issuance. * Size of fiscal stimulus unclear, expected to unnerve markets. * Beijing says will support indebted local governments. * Will offer subsidies to low-income people, recapitalise banks. * Pledges measures to stabilise property markets. By Kevin Yao and Joe Cash.
* U.S. stocks gain as banks lead after earnings. * Bets for quarter point Fed rate cut intact after PPI data. * Oil slips but set for weekly gain. By Chuck Mikolajczak.
* US 10-year yield posts weekly gain of nearly 10 bps. * US 30-year hits 10-week high, up for eight straight days. * US two-year yield on track for biggest daily fall since late September. * US yield curve bull-steepens after data. * US rate futures price in 91% chance of 25-bps cut in November. By Gertrude Chavez-Dreyfuss and Alden Bentley.
The evolution of inflation in Peru should lead to a series of "gradual" interest rate reductions, the bank's chief economist said on Friday, a day after the bank unexpectedly held its benchmark rate steady. Speaking at a webcast press conference, the bank's chief economist Adrian Armas said rate cuts should be gradual in part due to inflation expectations that have not decreased.
* U.S. stocks gain as banks lead after earnings. * Bets for quarter point Fed rate cut intact after PPI data. * Oil slips but set for weekly gain. By Chuck Mikolajczak.
* Canadian dollar hits weakest since Aug. 7 at 1.3783. * Canada's economy adds 47,000 jobs in September. * BoC survey shows firms still see weak demand. * Bond yields ease across the curve. By Fergal Smith.
Current inflation data in Peru indicates the central bank should follow a trajectory of gradual interest rate cuts, the bank's chief economist said on Friday.
* Both benchmarks settle up 1% on the week. * Investors consider Israel's response to Iran's attack last week. * Hurricane aftermath to weigh on Florida fuel demand. * Libyan oil production restored to pre-central bank crisis levels. By Georgina McCartney.
Fitch Ratings: * FITCH RATINGS: SPIRIT AIRLINES POSSIBLE BANKRUPTCY NEUTRAL TO AIRCRAFT LESSOR RATINGS Source text for Eikon: Further company coverage:
The U.S. central bank began an interest rate-cutting cycle in September, lowering short-term borrowing costs for the first time since the emergency reductions it implemented to support the economy during the COVID-19 pandemic.
* Producer price index unchanged in September. * PPI rises 1.8% year-on-year, smallest gain in 7 months. * Core PPI increases 0.1%; up 3.2% year-on-year. * Consumer sentiment slips in October. By Lucia Mutikani.
U.S. Treasury yields were mainly steady on Friday after bobbling on news that producer prices were flat in September, avoiding an inflation curve ball for the Federal Reserve before it must decide how much more to ease at its next meeting. The unchanged reading in the producer price index for final demand last month followed an unrevised 0.2% gain in August, the Labor Department said on Friday.
Oil and gas activity in the U.S. Midwest and Rockies declined during in the third quarter, marking its seventh consecutive quarterly drop, according to survey results released on Friday by Federal Reserve Bank of Kansas City. The survey, conducted in mid-September, covers companies drilling in Kansas, Colorado, Nebraska, Oklahoma and the northern half of New Mexico.
* U.S. stocks gain as banks lead after earnings. * Bets for quarter point Fed rate cut intact after PPI data. * Oil slips but set for weekly gain. By Chuck Mikolajczak. Global stocks were higher and poised for a weekly gain while longer-dated U.S. Treasury yields rose after a reading on inflation and consumer confidence kept expectations for the path of Federal Reserve interest rate cuts intact.
Brazil's ongoing monetary tightening cycle should last at least until March but there are risks it may have to go further, a former director of the country's central bank told Reuters. Fernanda Guardado, now serving as head of economic research for Latin America at lender BNP Paribas, said she does not see any exaggeration in the future interest rate hikes currently priced in by markets.
Canada's main stock index hit a record high on Friday led by gains in mining stocks, while a surprise decline in domestic unemployment rate assuaged concerns about a weak labor market. The Toronto Stock Exchange's S&P/TSX composite index rose as much as 180.36 points, or 0.74%, in morning trade to touch an all-time high of 24,482.62. The index was set for its fifth consecutive weekly rise.
* US PPI unchanged in September. * Bullion gains for a second straight session. * Silver, platinum head for weekly fall; palladium eyes weekly gains. By Anushree Mukherjee.
Libya's national oil corporation said it had restored oil production to levels before the country's central bank crisis as it reached 1.25 million barrels on Friday.
U.S. consumer sentiment slipped in October amid lingering frustration over high prices, a survey showed on Friday. The University of Michigan's preliminary reading on the overall index of consumer sentiment came in at 68.9 this month, compared to a final reading of 70.1 in September.
Canada's main stock index hit a record high on Friday led by gains in mining stocks, while traders raised bets for a quarter-point interest rate cut by the country's central bank later this month after a surprise dip in domestic unemployment rate. At 9:31 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 40.37 points, or 0.17%, at 24,342.63.
U.S. stock indexes were mixed at the open on Friday, as traders kept bets on a 25-basis-point Federal Reserve rate cut in November intact after producer prices data, while a slump in Tesla shares dragged on the Nasdaq.
The case for quarter-point U.S. interest rate cuts at upcoming Federal Reserve policy meetings appeared intact on Friday after a report showed producer prices were flat last month compared with August, suggesting inflation continues on track toward the Fed's target.
U.S. Treasury yields briefly ticked lower early on Friday after a report showed producer prices were flat in September, avoiding an inflation curve ball for the Federal Reserve before it must decide how much more to ease at its next meeting. The unchanged reading in the Producer Price Index for final demand last month followed an unrevised 0.2% gain in August, the Labor Department said on Friday.
* JPMorgan (JPM), Wells Fargo (WFC) up after Q3 results. * Tesla falls after unveiling robotaxi. * Core PPI higher than expected year-over-year. * Futures: Dow flat, S&P 500 down 0.06%, Nasdaq down 0.29% By Lisa Pauline Mattackal and Pranav Kashyap.
- U.S. equity funds witnessed outflows in the week to Oct. 9 as investors booked profits due to a shift in market expectations about the Federal Reserve rate cut path and a surge in bond yields. According to LSEG data, investors sold a net $342 million worth of U.S. equity funds during the week following a net $30.86 billion worth of purchases in the previous week.
U.S. equity funds witnessed outflows in the week to Oct. 9 as investors booked profits due to a shift in market expectations about the Federal Reserve rate cut path and a surge in bond yields. According to LSEG data, investors sold a net $342 million worth of U.S. equity funds during the week following a net $30.86 billion worth of purchases in the previous week.
-The case for quarter-point U.S. interest rate cuts at upcoming Federal Reserve policy meetings appeared intact on Friday after a report showed producer prices were flat last month compared with August, suggesting inflation continues on track toward the Fed's target.
Rating agency Moody's has cut its outlook on Volkswagen to "negative" from "stable", citing a deteriorating operating performance at Europe's top carmaker and expected challenges to turn the situation around.
The case for quarter-point U.S. interest-rate cuts at upcoming Federal Reserve policy meetings appeared intact on Friday after a report showed producer prices were unchanged last month compared to the prior month, suggesting inflation continues on track toward the Federal Reserve's target.
Most finance ministers and central bank chiefs from the BRICS group of countries did not attend a high-level meeting in Moscow on Friday ahead of a BRICS summit later this month, sending more junior officials instead, official documents showed.
U.S. producer prices were unchanged in September as a small rise in the cost of services was offset by cheaper goods, pointing to a still-favorable inflation outlook and supporting views that the Federal Reserve would cut interest rates again next month.
* Unemployment rate dips to 6.5% * * Average hourly wage growth slowed to 4.5% By Ismail Shakil and Promit Mukherjee. Canada's economy added a net 46,700 jobs in September and the unemployment rate unexpectedly decreased, data showed on Friday, weakening bets for a 50 basis-point rate cut this month.
- Global investors made large investments in money market funds in the week to Oct. 9 driven by a push back in Federal Reserve rate cut expectations and caution over the Middle East conflict. Investors also channelised capital into liquid money market funds as they awaited a much-anticipated update on Beijing's stimulus measures this weekend.
Global investors made large investments in money market funds in the week to Oct. 9 driven by a push back in Federal Reserve rate cut expectations and caution over the Middle East conflict. Investors also channelised capital into liquid money market funds as they awaited a much-anticipated update on Beijing's stimulus measures this weekend.
-JPMorgan Chase (JPM) shares rose nearly 5% on Friday after profit beat expectations in the third quarter, fueled by gains in investment banking and rising interest payments. The prospect of further monetary easing by the Federal Reserve spurred an equities rally during the third quarter, prompting companies to issue debt and equity.
The pound was pinned around a one month low on the dollar on Friday, getting little support from data that showed Britain's economy returned to growth in August. Sterling was last flat on the day on the dollar at $1.3069, just off the $1.3011 hit Thursday, its lowest since mid Sept. It was also flat on the euro, at 83.70 pence to the common currency.
A look at the day ahead in U.S. and global markets from Mike Dolan. Even though futures pricing had already turned queasy before the sticky September inflation report on Thursday, the prospect of the Federal Reserve skipping another interest rate cut next month has now become part of the mix.
A look at the day ahead in U.S. and global markets from Mike Dolan. Even though futures pricing had already turned queasy before the sticky September inflation report on Thursday, the prospect of the Federal Reserve skipping another interest rate cut next month has now become part of the mix.
* Bullion poised for second straight weekly decline. * Silver, platinum head for weekly fall. By Daksh Grover. Gold extended gains after the release of the latest data on U.S. producer prices on Friday, as the U.S. dollar pulled back from two-month highs on heightened expectations for a Federal Reserve rate cut in November. Spot gold rose 0.7% to $2,647.55 per ounce by 1316 GMT.
* Futures down: Dow 0.11%, S&P 500 0.21%, Nasdaq 0.34% U.S. stock index futures edged lower on Friday, ahead of the third-quarter earnings season kickoff, after hotter-than-expected September inflation data solidified expectations for a 25-basis-point rate cut by the Federal Reserve in November.
* BoC likely to lower rates faster than Fed due to weak Canadian growth. * Investors expect BoC policy rate to hit neutral setting in less than one year. * Canadian dollar hits a two-month low amid rate-cut expectations. By Fergal Smith.
China's GDP figures, U.S. retail sales and a rate decision by the European Central Bank headline the coming week, while earnings are under way on both sides of the Atlantic and UK markets get nervy ahead of the new government's first budget.
Japanese government bond yields declined on Friday, tracking U.S. Treasury yields, and easing from multi-week highs hit in the previous session. Data on Thursday showed an increase in U.S. weekly jobless claims and the smallest annual jump in inflation since February 2021, suggesting the Federal Reserve is on track to cut interest rates next month.
* U.S. PPI data due at 1230 GMT. * Palladium set for weekly gains. * Indian gold dealers charge premium after two months. By Ashitha Shivaprasad. Gold climbed on Friday after a higher jobless claims report firmed bets for a Federal Reserve rate cut next month, while investors awaited U.S. Producer Price Index data for further direction.
Finance Minister Katsunobu Kato said on Friday he would attend meetings of financial leaders from the Group of Seven and Group of 20 economic powers, as well as the International Monetary Fund and World Bank gatherings later this month. Speaking to reporters in a news conference, Kato said he would travel to Washington Oct. 23-27 to attend those meetings.
Gold prices edged higher on Friday after recent data supported bets for a Federal Reserve interest rate cut next month, while market participants focussed on the U.S. Producer Price Index report for further direction. FUNDAMENTALS. * Spot gold rose 0.3% to $2,636.13 per ounce by 0153 GMT but was down about 0.6% for the week. * The dollar index fell from two-month highs.
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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