Peru's central bank held the benchmark interest rate at 5.25% on Thursday, after two consecutive cuts, defying analysts' expectations of a 25-basis-point trim. Peru has one of Latin America's lowest benchmark interest rates, and the central bank said in a statement that future rate changes would be dependent on inflation data and its determinants.
* U.S. CPI slightly above expectations. * * Market views for 25-bp Fed rate cut in November choppy. By Chuck Mikolajczak. Global stocks were little changed while longer-dated U.S. Treasury yields edged up in choppy trading on Thursday as investors weighed the interest rate path from the Federal Reserve after economic data and comments from central bank officials.
* September CPI data higher than expected. * Unemployment claims higher than estimates. * Delta Air Lines (DAL) shares fall after Q3 results. * Energy stocks track oil prices higher. * Banks to kick off Q3 earnings season on Friday. * Indexes: Dow down 0.14%, S&P 500 off 0.21, Nasdaq down 0.05% By Sin?ad Carew and Lisa Pauline Mattackal.
* U.S. inflation annual rise smallest since February 2021. * U.S. jobless claims rise in latest week. * U.S. yield curve steepens post-data. * U.S. rate futures price in 91% chance of 25-bp cut in November. * U.S. 30-year bond auction shows strong results. By Gertrude Chavez-Dreyfuss.
Peru's sol depreciated the most among
Latin American currencies on Thursday, with traders pricing in
an interest rate cut by the domestic central bank, while
Colombia's peso firmed, ...
The U.S. dollar slipped
against the yen on Thursday as investors weighed data showing
labor market weakness as well as a slight uptick in consumer
prices, suggesting that the Federal Reserve will ...
- Wall Street's biggest banks expect the Federal Reserve to end the process of shrinking its balance sheet next April, holding the line relative to what they told the central bank in July.
Argentina's monthly inflation rate stood at 3.5% in September, in line with a Reuters poll forecast and down from 4.2% in August, data from the INDEC statistics agency showed on Thursday. Month-on-month inflation declined dramatically in the first few months of the year but had since May stayed stubbornly at around 4%. The latest data marks the lowest level since late 2021.
* September CPI data higher than expected. * Delta Air Lines (DAL) down after Q3 results. * Energy stocks track oil prices higher. * Banks to kick off Q3 earnings season on Friday. * Indexes: Dow down 0.34%, S&P 500 off 0.30, Nasdaq down 0.17% By Sin?ad Carew and Lisa Pauline Mattackal.
* U.S. CPI slightly above expectations. * * Market views for 25-bp Fed rate cut in November choppy. By Chuck Mikolajczak. Global stocks fell while longer-dated U.S. Treasury yields rose on Thursday as investors gauged the path of interest rates from the Federal Reserve after data on the labor market and inflation as well as comments from central bank officials.
* Canadian dollar weakens 0.3% against the greenback. * Touches its weakest since Aug. 7 at 1.3775. * Price of US oil jumps 3.8% * 2-year yield eases 7.3 basis points. By Fergal Smith.
-Slowly cooling inflation and a U.S. job market that remains strong but at risk of deteriorating give a green light for more interest-rate cuts in coming months, Federal Reserve policymakers indicated in remarks on Thursday, even as one suggested that skipping a move in November may be in order.
* September CPI data higher than expected. * Delta Air Lines (DAL) down after Q3 results. * Energy stocks track oil prices higher. * Banks to kick off Q3 earnings season on Friday. * Indexes: Dow down 0.08%, S&P 500 flat, Nasdaq up 0.18% By Lisa Pauline Mattackal and Pranav Kashyap.
* Fed's Goolsbee says rates need to drop 'fair amount' * NY Fed chief says timing, pace of cuts depend on data. * Markets bet Fed to cut in quarter-point increments. By Ann Saphir and Michael S. Derby.
- The average rate on the popular U.S. 30-year mortgage rate increased to 6.32% this week, its largest one week increase since April, as a string of stronger-than-expected economic data caused investors to scale back bets on further Federal Reserve interest-rate cuts.
The average rate on the popular U.S. 30-year mortgage rate increased to 6.32% this week, its largest one week increase since April, as a string of stronger-than-expected economic data caused investors to scale back bets on further Federal Reserve interest-rate cuts.
Federal Reserve Bank of New York President John Williams said Thursday he does not know when the central bank will end the process of shrinking its balance sheet. When it comes to shutting down quantitative tightening, or QT, Williams noted, "when will that be?
The Bank of Mexico's five-member governing board expects easing inflation could allow further reductions to its benchmark interest rate, minutes from the bank's September monetary policy decision showed on Thursday. Most of the board, however, warned that inflationary pressures still pose a challenge.
Federal Reserve Bank of New York President John Williams said Thursday the latest round of hiring and inflation data fits in with the overall pattern of economic activity seen as the central bank went into its policy meeting last month.
The Bank of Mexico's five-member governing board expects that easing inflation could allow further adjustments to the benchmark interest rate, minutes from the bank's September monetary policy decision showed on Thursday.
* U.S. CPI slightly above expectations. * * Market views for 25-bp Fed rate cut in November climb. By Chuck Mikolajczak. Global stocks slipped for the first time in three sessions while shorter-dated U.S. Treasury yields dipped as slightly higher than expected U.S. inflation data and a jump in weekly jobless claims did not diminish expectations the Fed will cut rates in November.
- Federal Reserve Bank of New York President John Williams said Thursday he expects more rate cuts lie ahead as inflation pressures continue to moderate.
The Mexican government's wide budget deficit this year should land below 6% of the country's economic output, President Claudia Sheinbaum said on Thursday, pledging to keep government red ink roughly in line with an earlier forecast. This year's deficit was previously estimated at 5.9% of the country's gross domestic product.
- Chicago Federal Reserve Bank Austan Goolsbee on Thursday said he sees a series of interest-rate cuts over the next year to year and a half, noting that inflation is now near the Fed's 2% goal and the economy is about at full employment, and the Fed's goal is to freeze those conditions in place.
Mexican President Claudia Sheinbaum said on Thursday that the government's budget deficit should end this year at below 6% of gross domestic product, while aiming for a deficit of 3.5% of GDP in 2025. This year's budget deficit is forecast to reach 5.9% of the country's economic output.
* U.S. inflation annual rise smallest since February 2021. * U.S. jobless claims rise in latest week. * U.S. yield curve steepens post-data. * U.S. rate futures price in 91% chance of 25-bp cut in November. By Gertrude Chavez-Dreyfuss.
* U.S. consumer prices rise slightly above expectations in September. * U.S. weekly jobless claims surge. * Traders see an 88% chance of a 25 bp cut in November. By Anushree Mukherjee. Oct 10 - Gold prices extended gains on Thursday after traders added to bets that the Federal Reserve will deliver an interest-rate cut next month following the latest U.S. economic data.
* September CPI data higher than expected. * Delta Air Lines (DAL) down after Q3 results. * Indexes down: Dow 0.18%, S&P 500 0.27%, Nasdaq 0.38% By Lisa Pauline Mattackal and Pranav Kashyap. Wall Street opened lower on Thursday as hotter-than-expected September inflation data reinforced expectations of a 25-basis-point rate hike by the Federal Reserve at its upcoming meeting.
Federal Reserve policymakers are seen as likely to deliver a quarter-percentage-point interest-rate cut next month and continue to lower the policy rate gradually until it gets to 3.5%, or possibly lower, by late next year, based on bets in interest-rate futures contracts.
Wall Street's main indexes fell at the open on Thursday, after data showed U.S. inflation was higher than expected in September, keeping the Federal Reserve on track to ease interest rates by 25 basis points at its next meeting.
Euro zone government bond yields pared their rise on Thursday after U.S. economic data led investors to slightly increase bets on Federal Reserve interest rate cuts. U.S. consumer prices rose slightly more than expected in September, but their annual increase was the smallest in more than 3-1/2 years.
* U.S. CPI rises 0.2% m-o-m, 2.4% y-o-y. * Jobless claims surge. * Markets still se 25 bp Fed rate cut in November. * Investors wait on details of China stimulus measures. * Focus on Saturday's briefing on fiscal policy moves. * French budget provides European focus for later in the day. By Alun John.
* September CPI data higher than expected. * Delta Air Lines (DAL) down after Q3 results. * Futures down: Dow 0.26%, S&P 500 0.37%, Nasdaq 0.52% By Lisa Pauline Mattackal and Pranav Kashyap.
The U.S. dollar edged lower against the yen on Thursday after data showed a higher-than-expected rise in U.S. inflation in September even though prices were on a downward trend, allowing the Federal Reserve to keep cutting interest rates. Labor Department data on Thursday showed that the consumer price index increased 0.2% in September.
- U.S. consumer prices rose slightly more than expected in September, but the annual increase in inflation was the smallest in more than 3-1/2 years, potentially keeping the Federal Reserve on track to cut interest rates again next month. The consumer price index increased 0.2% last month after gaining 0.2% in August, the Labor Department said on Thursday.
U.S. Treasury yields were mixed on Thursday, after briefly turning lower across the board in volatile trade as data showed inflation last month came in a little higher than expected, although the annual rise was the lowest since February 2021. Data showed the consumer price index increased 0.2% last month after gaining 0.2% in August.
The number of Americans filing new applications for unemployment benefits surged last week, partially boosted by Hurricane Helene and furloughs at Boeing amid a nearly four-week-old strike at the U.S. planemaker. Initial claims for state unemployment benefits increased 33,000 last week to a seasonally adjusted 258,000 for the week ended October.
The number of Americans filing new applications for unemployment benefits surged last week, partially boosted by Hurricane Helene and furloughs at Boeing (BA) amid a nearly four-week-old strike at the U.S. planemaker. Initial claims for state unemployment benefits increased 33,000 last week to a seasonally adjusted 258,000 for the week ended October.
-Slowly cooling inflation and a U.S. job market that remains strong but at risk of deteriorating give a green light for more interest-rate cuts in coming months, Federal Reserve policymakers indicated in remarks on Thursday, even as one suggested that skipping a move in November may be in order.
U.S. consumer prices rose slightly more than expected in September, but the annual increase in inflation was the smallest in more than 3-1/2 years, potentially keeping the Federal Reserve on track to cut interest rates again next month. The consumer price index increased 0.2% last month after gaining 0.2% in August, the Labor Department's Bureau of Labor Statistics said on Thursday.
U.S. consumer prices rose slightly more than expected in September amid higher food costs, but the annual increase in inflation was the smallest in more than 3-1/2 years, keeping the Federal Reserve on track to cut interest rates again next month.
Stock index futures extended losses on Thursday as data showed U.S. inflation was higher than expected in September, hinting at the possibility of fewer interest-rate cuts later this year. A Labor Department report showed the Consumer Price Index rose 2.4% in September on an annual basis, compared with an estimate of a 2.3% rise.
* Delta Air Lines (DAL) down after Q3 results. * CPI data due at 8:30 a.m. ET. * Futures down: Dow 0.10%, S&P 500 0.17%, Nasdaq 0.20% By Lisa Pauline Mattackal and Pranav Kashyap.
-Wall Street's main indexes closed lower on Thursday as investors looked to higher-than-expected inflation and unemployment claims for indications on the health of the U.S. economy and the path for interest rates.
European Central Bank policymakers appeared content with the drop in inflation when they met last month but argued for a gradual policy easing given stubborn price pressures, the accounts of their Sept. 12 policy meeting showed on Thursday.
Indian shares ended marginally higher on Thursday as a drop in information technology stocks weighed on gains in financials, while markets awaited a key U.S. inflation report. The Nifty 50 index rose 0.07% to 24,998.45, while the S&P BSE Sensex added 0.18% to 81,611.41. The indexes rose about 0.6% each earlier in the session.
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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