Speculators trimmed net
bearish bets on U.S. 10-year and two-year Treasury note futures
in the latest week, according to Commodity Futures Trading
Commission data released on Friday.
* Job growth beats expectations. * Unemployment rate steady at 3.7% * Ford falls on lower November vehicle sales. * Dow up 0.1%, S&P 500 down 0.12%, Nasdaq down 0.18% By Chuck Mikolajczak.
* S&P SAYS LITHUANIA OUTLOOK REVISED TO NEGATIVE FROM STABLE ON SPILLOVER EFFECTS FROM THE WAR; 'A+/A-1' RATINGS AFFIRMED. * S&P PROJECTS COUNTRY'S ECONOMY WILL FALL INTO RECESSION IN FIRST-HALF 2023 BEFORE RECOVERING IN SECOND HALF & GROWING ONLY 0.5% ANNUALLY.
Treasury yields pared sharp
gains on Friday after a strong U.S. jobs report for November
showed a resilient labor market with rising wages, a potential
thorn for the Federal Reserve as it moves to ...
- Persistently massive inflows of cash into a key Federal Reserve facility are in large part being driven by a bank liquidity regulation change from last year, a report from the New York Fed said Friday. The Fed's facility offers what are called reverse repos, which allow eligible firms to park cash at the central bank in exchange for a risk-free return.
Latin American currencies fell on
Friday after a stronger-than-expected reading on U.S. employment
raised concerns about a hawkish Federal Reserve, while South
Africa's rand rebounded a day ...
The dollar dipped on Friday
as a Federal Reserve official said rate hikes are likely to slow
and as investors took profits from earlier gains after jobs data
and wage inflation were surprisingly ...
The U.S. Federal Reserve Board on Friday joined other key banking regulators in proposing a plan for how large banks should manage climate-related financial risks, drawing immediate dissent from one member and reservations from another.
Treasury yields were little
changed on Friday after a strong unemployment report for
November showed a resilient labor market with rising wages, a
potential thorn for the Federal Reserve as it moves ...
* Job growth beats expectations; unemployment rate steady at 3.7% * Ford falls on lower November vehicle sales. * Dow down 0.29%, S&P 500 down 0.54%, Nasdaq down 0.75% By Chuck Mikolajczak.
U.S. employers hired more workers than expected in November and increased wages, shrugging off mounting worries of a recession, but that will probably not stop the Federal Reserve from slowing the pace of its interest rate hikes starting this month.
- The Federal Reserve will likely need to raise borrowing costs to a "slightly higher" peak than envisioned in forecasts from September, Chicago Federal Reserve Bank President Charles Evans said on Friday.
The pace and scale of rate hikes delivered by central banks in November picked up speed again as policy makers around the globe battle decade high inflation. Central banks overseeing six of the 10 most heavily traded currencies delivered 350 basis points of rate hikes between them last month.
The Canadian dollar weakened against its U.S. counterpart on Friday as domestic jobs data caused few surprises, while a stronger-than-expected U.S. jobs gain ran counter to hopes that the Federal Reserve would soon slow the pace of rate hikes.
* Canadian dollar weakens 0.2% against the greenback. * For the week, the loonie was on track to fall 0.6% * Canada adds 10,100 jobs in November. * Canadian bond yields rise across curve. The Canadian dollar weakened against its broadly stronger U.S. counterpart on Friday as investors weighed U.S. and Canadian jobs data for its impact on the pace of central bank interest rate hikes.
Investors have withdrawn $316 billion from credit funds this year, unwinding all of the previous year's inflows, BofA Global Research said in a note on Friday. That is a bearish signal for corporate debt markets as high inflation and rising interest rates darken the economic outlook, and is in sharp contrast to inflows into share markets.
Canada's main stock index opened lower on Friday after data showed the economy added more-than-anticipated jobs in November, while falling bullion prices further weighed on the index. At 09:31 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down 153.6 points, or 0.75%, at 20,371.85.
The dollar jumped on Friday
after data showed that U.S. employers added more jobs than
expected in November while average hourly earnings also
increased, potentially giving the Federal Reserve more ...
Wall Street's main indexes opened lower on Friday as higher-than-expected job additions in November poured cold water on investor expectations of the Federal Reserve easing its aggressive monetary policy tightening.
-The Federal Reserve is seen driving its policy rate above 5% by May after a government report Friday showed little sign of a cooling job market, despite the central bank's aggressive interest-rate increases so far.
The Canadian economy added a limited number of jobs in November and the unemployment rate came in lower than expected as fewer people looked for work, official data showed on Friday, in a tepid report that may bolster the chances for a normal-sized interest rate increase next week.
The Canadian economy added a limited number of jobs in November and the unemployment rate came in lower than expected as fewer people looked for work, official data showed on Friday, in a tepid report that may bolster the chances for a normal-sized interest rate increase next week.
The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation.
U.S. stock index futures fell sharply on Friday as higher-than-expected job additions in November poured cold water on investor expectations of the Federal Reserve easing its aggressive monetary policy tightening. Money market bets show an 87% chance of a 50-basis point hike by the Fed at its December meeting, down from 91% before the data was published.
Brazil's central bank is set to keep its benchmark interest rate at a cycle-high of 13.75% next week, stressing heightened worries over new government plans to boost social spending, a Reuters poll showed.
Industrial production in Brazil rose 0.3% in October from September, government statistics agency IBGE said on Friday, returning to positive territory after two consecutive monthly declines though still below pre-pandemic levels. The median estimate in a Reuters poll of economists had projected stability from the previous month.
Industrial production in Brazil rose 0.3% in October from September, government statistics agency IBGE said on Friday, returning to positive territory after two consecutive monthly declines though still below pre-pandemic levels. The median estimate in a Reuters poll of economists had projected stability from the previous month.
- Global equity funds recorded enormous outflows in the week ended on Nov. 30 as investors booked profits - after a rally in the last month - amid concerns about global economic growth due to China's strict zero-COVID curbs. According to Refinitiv Lipper data, investors withdrew a net $5.44 billion out of global equity funds, the highest since the week ended Oct. 19.
Global equity funds recorded enormous outflows in the week ended on Nov. 30 as investors booked profits - after a rally in the last month - amid concerns about global economic growth due to China's strict zero-COVID curbs. According to Refinitiv Lipper data, investors withdrew a net $5.44 billion out of global equity funds, the highest since the week ended Oct. 19.
The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation.
* Futures off: Dow 0.07%, S&P 0.02%, Nasdaq 0.07% U.S. stock index futures edged lower on Friday as investors await the monthly jobs report for November, which would provide more clues on the Federal Reserve's path of monetary tightening.
New U.S. Federal Reserve projections, issued later this month alongside an expected half-point interest rate increase, could show the central bank's target rate headed toward levels last seen on the eve of the 2007 financial crisis, and will also reveal policymakers' best guess of the fallout that will have for a so-far resilient job market.
A look at the day ahead in U.S. and global markets from Dhara Ranasinghe. The yield on two-year U.S. Treasuries, the most sensitive to the interest rate outlook, is down some 26 basis points this week alone to around 4.22%. If it holds at current levels, this would mark one of the biggest weekly drops in the last two years.
U.S. Federal Reserve officials have signaled plans for a half-point interest rate hike at their meeting this month, and while that would be a step down from recent rate increases, new projections issued then could show a policy rate headed toward levels last seen on the eve of the 2007 financial crisis.
Bank of France deputy governor Sylvie Goulard is leaving the French central bank on Dec 5 to join the French Foreign Ministry, the central bank said on Friday.
European government bonds on Friday were set to post weekly gains having rallied in the slipstream of advances in U.S. Treasuries, although U.S. jobs data due later in the day could disturb the trend. Germany's 10-year bund yield, the benchmark for the euro zone, was last at 1.79%, little changed on the day, but at its lowest since early October and down nearly 18 basis points on the week.
Investors have withdrawn $316 billion from credit funds this year, unwinding all of the previous year's inflows, BofA Global Research said in a note on Friday. That is a bearish signal for corporate debt markets as high inflation and rising interest rates darken the economic outlook, and is in sharp contrast to inflows into share markets.
The Bank of Japan bought 70.1 billion yen of exchange-traded funds on Friday, stepping into the market for the first time in six months, the central bank data showed.
Japanese government bond yields fell on Friday, tracking U.S. Treasury yields lower, amid caution ahead of U.S. non-farm payrolls data and next week's domestic auction. The 20-year JGB yield fell 2 basis points to 1.095%. The 30-year JGB yield fell 2.5 basis points to 1.490% ahead of an auction for bonds with the same maturity next week.
- Swiss lender Credit Suisse faces a litmus test over its rights issue, just one several trials markets must work through between now and year-end even if some are already gearing up for festive cheer. U.S. data will provide a reality check on the shifting nature of inflation while policy makers at Australia's central bank and OPEC+ ministers are due to meet.
India began its year-long presidency of the Group of 20 this week, taking over from Indonesia at a time of geopolitical tumult and uncertainty over post-pandemic economic recovery. WHAT IS THE G20?
Swiss lender Credit Suisse faces a litmus test over its rights issue, just one several trials markets must work through between now and year-end even if some are already gearing up for festive cheer. U.S. data will provide a reality check on the shifting nature of inflation while policy makers at Australia's central bank and OPEC+ ministers are due to meet.
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
Line of Credit Log In Required
Publication Date