* Investors optimistic about potential rate cuts later this year after Powell's comments. * Although fragile, Israel-Iran ceasefire pushes oil prices lower. * Demand at $69 billion two-year notes auction tepid, with high primary dealers stake. By Tatiana Bautzer, Davide Barbuscia.
* Wall Street shares rally more than 1% * Iran and Israel ceasefire appears to hold. * Brent crude futures settle down 6% * US yields fall, German draft budget sends Bund yields higher. * Dollar extends pullback, gold softens. By Chibuike Oguh.
-Higher import levies will put upward pressure on prices that may not prove temporary, Federal Reserve Governor Michael Barr said on Tuesday in remarks that suggest he is in no rush? to cut interest rates despite what he called?"gradual, albeit uneven" progress toward 2% inflation to date.
* Fed Chair Powell reiterates "wait and see" approach to rate cuts, tariffs. * US airlines rise on hopes of end to Israel-Iran conflict. * Broadcom (AVGO) hits record peak after brokerage upgrades. By Stephen Culp.
* Indexes up: Dow 1.21%, S&P 500 1.19%, Nasdaq 1.56% * FedEx (FDX) rises ahead of quarterly results. * Fed Chair Powell reiterates "wait and see" approach to rates. * US airlines rise on hopes of end to Israel-Iran conflict. * Broadcom (AVGO) hits record peak after brokerage upgrades. By Stephen Culp.
U.S. Treasury Secretary Scott Bessent on Tuesday said the date for the nation to reach its debt ceiling could change if courts interfere with U.S. President Donald Trump's tariff policies. "We will never default on national debt," he told reporters at the U.S. Capitol after meeting with lawmakers.
Federal Reserve Bank of Boston President Susan Collins said Tuesday monetary policy is in the right place. In remarks focused on the housing industry, the bank president noted that the "modestly restrictive" stance of monetary policy is "necessary" even as it has weighed on the housing market and thwarted efforts to improve the supply of homes.
* Consumer confidence index falls 5.4 points to 93.0 in June. * Labor market differential narrows; inflation expectations ease. * Annual house price growth slows in April as supply rises. By Lucia Mutikani.
Federal Reserve Chair Jerome Powell on Tuesday said members of Congress have told him privately the central bank is "doing the right thing" on interest rates even as President Donald Trump berates Powell and the Fed for not cutting borrowing costs.
Federal Reserve Bank of New York President John Williams expects slower growth and higher inflation this year due in large part to trade tariffs, in comments that suggested he is in no rush to cut interest rates.
Federal Reserve Bank of New York President John Williams expects slower growth and higher inflation this year due in large part to trade tariffs, in comments that gave little in the way of guidance for what's next for central bank interest rate policy.
* Investors focused on fragile Israel-Iran ceasefire. * Powell's comments seen as opening door to potential rate cuts. * German budget adds some selling pressure for long-dated debt. * Two-year auction later on Tuesday. By Davide Barbuscia.
* US President Trump accuses both sides of violating ceasefire. * Analysts see less risk to Middle East oil supplies. * Trump says China can continue to purchase oil from Iran. By Scott DiSavino. Oil prices fell 6% on Tuesday to settle at a two-week low, on expectations the ceasefire between Israel and Iran will reduce the risk of oil supply disruptions in the Middle East.
Federal Reserve Chair Jerome Powell on Tuesday said he is open to the idea that the inflation he and other Fed officials worry will be kindled by President Donald Trump's tariffs may prove to be less severe than thought.
Federal Reserve Chair Jerome Powell on Tuesday said if it turns out that inflation pressures are contained, the central bank will get to a place when it can cut interest rates, but "we don't need to be in any rush."
* Investors focused on fragile Israel-Iran ceasefire. * German budget adds selling pressure for long-dated debt. * Two-year auction later on Tuesday. By Davide Barbuscia. U.S. Treasury yields were roughly unchanged on Tuesday amid fragile optimism over a ceasefire between Israel and Iran, uncertainty over the path of interest rates, and concerns over global demand for long-dated government debt.
* Canadian dollar gains 0.3% against the greenback. * Trades in a range of 1.3679 to 1.3738. * Annual rate of CPI holds steady at 1.7% * Bond yields edge lower across the curve. By Fergal Smith.
Federal Reserve Chair Jerome Powell on Tuesday said it was too soon to know what effects the escalating conflict in the Middle East might have on the U.S. economy. "I think it's too early to know what any economic implications might be and I would not want to speculate," Powell said in response to a question during testimony before the House Financial Services Committee.
* Gold hit over 2-week low earlier in the session. * Support levels for gold at $3,300, $3,250 level - analyst. * Fed's Powell says need more time before considering rate cuts. By Sarah Qureshi. June 24 - Gold fell 2% to hit an over two-week low on Tuesday as the announcement of a ceasefire between Iran and Israel dented safe-haven demand for bullion.
* Trump announces Iran, Israel ceasefire. * Euro, yen gain as oil prices drop, risk currencies rally. * Fed's Powell to testify before U.S. Congress. By Karen Brettell. The dollar was broadly lower on Tuesday after the announcement of a ceasefire between Israel and Iran and as Federal Reserve Chair Jerome Powell testifies before U.S. Congress.
U.S. consumer confidence unexpectedly deteriorated in June as households increasingly worried about job availability, another indication that labor market conditions were softening against the backdrop of rising economic uncertainty because of the Trump administration's tariffs.
U.S. consumer confidence unexpectedly deteriorated in June as households worried about business conditions and employment prospects over the next six months.
The U.S. current account deficit widened to a record high in the first quarter as businesses front-loaded imports to avoid President Donald Trump's hefty tariffs on imported goods.
Federal Reserve Bank of Cleveland President Beth Hammack said Tuesday she sees no pressing need to cut interest rates when there's still a lot of uncertainty what trade tariffs will do to inflation, which is still above the central bank's target.
The U.S. current account deficit widened to a record high in the first quarter as businesses front-loaded imports to avoid President Donald Trump's hefty tariffs on imported goods.
Traders of short-term interest-rate futures on Tuesday priced in a smaller chance of a July Federal Reserve interest-rate cut after Fed Chair Jerome Powell used his prepared remarks to Congress to repeat that the central bank is well-positioned to wait for more clarity before adjusting short-term borrowing costs.
Higher tariffs could begin raising inflation this summer, a period that will be key to Federal Reserve consideration of possible rate cuts, Fed Chair Jerome Powell told members of Congress on Tuesday.
* Powell says tariffs will raise inflation. * Fed in good position to wait before cutting rates. * Economy remains solid. By Howard Schneider. U.S. Federal Reserve Chair Jerome Powell said on Tuesday the central bank needs more time to see if rising tariffs drive inflation higher before considering the interest rate cuts that President Donald Trump is demanding.
* Lower gasoline prices on annual basis aided CPI data. * Mortgage costs, rents also cooled from previous month. * Core measures CPI-median, CPI-trim eased to 3% * Inflation in May on a monthly basis was at 0.6% By Promit Mukherjee.
Mexico's headline inflation landed in line with expectations in the first half of June, reinforcing analysts' expectations that the central bank should continue to steadily bring down interest rates in Latin America's second-largest economy.
* Central bank open to resuming hikes if inflation remains above 3% target. * Brazil's economy has continued to outperform expectations. * Short-term inflation outlook remains adverse. By Marcela Ayres.
Germany will boost defence spending to 3.5% of gross domestic product by 2029, a hefty, and quick, increase from a 2% NATO quota that it only achieved for the first time in three decades in 2024. Here is how Germany will achieve its defence spending goal: DEFENCE FUND.
Brazil's central bank said on Tuesday that much of the impact from its "particularly quick and very firm" tightening cycle is yet to be felt, which is why it now foresees a pause in interest rate increases to assess those effects.
The Bank for International Settlements issued its starkest warning yet on the risks posed by stablecoins and urged countries to move rapidly towards the tokenisation of their currencies.
* BIS warns stablecoin carry multitude of system-wide risks. * Risks include monetary sovereignty, EM capital flight. * Central banks need to boldly pursue tokenisation. By Marc Jones. The Bank for International Settlements issued its starkest warning yet on the risks posed by stablecoins and urged countries to move rapidly towards the tokenisation of their currencies.
Wall Street advanced on Tuesday as investors welcomed a fragile truce with Israel and Iran while parsing Federal Reserve Chair Jerome Powell's congressional testimony for clues regarding the U.S. central bank's path forward. All three major U.S. stock indexes were on track for their second straight session of solid gains following U.S. missile strikes on Iran's uranium enrichment assets.
U.S. stocks rallied more than 1% on Tuesday as investors welcomed a fragile truce with Israel and Iran while parsing Federal Reserve Chair Jerome Powell's congressional testimony for clues regarding the U.S. central bank's path forward. All three major U.S. stock indexes closed with their second straight session of solid gains following U.S. missile strikes on Iran's uranium enrichment assets.
What matters in U.S. and global markets today. By Mike Dolan, Editor-At-Large, Financial Industry and Financial Markets. After a tentative ceasefire was announced in the Middle East, U.S. crude, gold, Treasury yields and the dollar gave up all gains registered since Israel's initial attack on Iran on June 13.
By Mike Dolan. What matters in U.S. and global markets today By Mike Dolan, Editor-At-Large, Financial Industry and Financial Markets. After a tentative ceasefire was announced in the Middle East, U.S. crude, gold, Treasury yields and the dollar gave up all gains registered since Israel's initial attack on Iran on June 13.
The Federal Reserve need not cut interest rates with companies planning to raise prices later this year in response to higher import taxes and with the job market still stable, Atlanta Fed President Raphael Bostic told Reuters. "I think we have some space and time" to watch how the tariff and other policy debates evolve, said Bostic in an interview at his office in downtown Atlanta.
U.S. Federal Reserve Chair Jerome Powell begins two days of congressional testimony on Tuesday under fire from President Donald Trump for not cutting interest rates but with his status as head of the central bank seemingly secured from any presidential action by a Supreme Court ruling last month.
* Supreme Court citing Fed's special role limits Trump's appointments. * President may be able to name as few as two new governors. * Powell starts two days of hearings before Congress. * U.S. military involvement in Iran now part of backdrop. By Howard Schneider.
* Germany plans record investments to stimulate economic growth. * Defence spending to rise to 3.5% of GDP by 2029. * Total borrowing of 847 bln euros over five years. By Maria Martinez.
* * Focus on Powell's testimony due later in the day. * ANZ expects gold to peak later in 2025, followed by a gradual decline in 2026. By Anushree Mukherjee. June 24 - Gold dropped more than 1% to touch a two-week low on Tuesday, after President Donald Trump's announcement of a ceasefire between Israel and Iran diminished bullion's safe-haven appeal.
The custodians of trillions of dollars of global central bank reserves are eyeing a move away from the greenback into gold, the euro and China's yuan as the splintering of world trade and geopolitical upheaval spark a rethink of financial flows.
By Hongmei Li. Copper prices on the London Metals Exchange and Shanghai Futures Exchange inched up on Tuesday as caution prevailed after U.S. President Donald Trump announced the Iran-Israel ceasefire. LME three-month copper was up 0.52% at $9,717.5 per metric ton as of 0703 GMT and SHFE most-traded copper gained 0.4% to 78,640 yuan.
* Asian stock markets: https://tmsnrt.rs/2zpUAr4. * Trump says Iran and Israel agree to ceasefire. * Wall St futures rise, Nikkei up 1.3% * Dollar extends pullback, Treasury yields steady. By Wayne Cole, Stella Qiu.
-U.S. President Donald Trump said on Tuesday that interest rates in the country should be lowered by at least two to three percentage points, ahead of Federal Reserve Chair Jerome Powell's testimony before Congress. "We should be at least two to three points lower...if things later change to the negative, increase the Rate," Trump said in a Truth Social post.
U.S. President Donald Trump on Tuesday said interest rates should be at least two to three points lower and the U.S. Federal Reserve could increase them later if things turned negative. "We should be at least two to three points lower.
* Trump says Iran and Israel agree to ceasefire. * Global shares rally, oil slumps. * Focus on Powell's testimony for clues on US rate path. By Brijesh Patel. Gold prices fell to a near two-week low on Tuesday as risk appetite improved after U.S. President Donald Trump said Iran and Israel had agreed to a ceasefire, denting demand for safe-haven assets.
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.
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