U.S. Treasury yields on
Friday ended the third quarter lower, with yields on benchmark
10-year falling from 16-year highs touched during the previous
session after key inflation data for August ...
S&P: * S&P SAYS TURKIYE OUTLOOK REVISED TO STABLE FROM NEGATIVE ON POLICY SHIFT; 'B' RATINGS AFFIRMED. * S&P SAYS TURKIYE'S NEW ECONOMIC TEAM FACES AN OVERHEATED ECONOMY, LARGE TWIN DEFICITS, ELEVATED INFLATION, AND RAPID MONEY GROWTH. * S&P ON TURKIYE SAYS SHIFT TOWARDS ORTHODOX MONETARY POLICY MAY REBALANCE ECONOMY AWAY FROM HIGH RELIANCE ON EXTERNALLY FINANCED CONSUMPTION BY 2025/2026.
FITCH: * FITCH: REVISES PANAMA'S OUTLOOK TO NEGATIVE, AFFIRMS IDR AT 'BBB-' * FITCH UPGRADED PANAMA'S COUNTRY CEILING TO 'AA-' FROM 'A-' * FITCH SAYS PANAMA'S NEGATIVE OUTLOOK REFLECTS PERSISTENT FISCAL PRESSURES AND UNCERTAIN PROSPECTS FOR CONSOLIDATION. * FITCH SAYS IT DOES NOT EXPECT PENSION REFORM WITHIN CURRENT ADMINISTRATION TERM ENDING JULY 2024 IN PANAMA.
- The labels "dove" and "hawk" have long been used by central bank watchers to describe the monetary policy leanings of policymakers, with a dove more focused on risks to the labor market and a hawk more focused on the threat of inflation.
Big positions in a handful of stocks helped a select number of U.S. value and small-cap funds rocket higher in the third quarter while rising Treasury yields dented the broad stock market.
Ecuador's economy expanded by 3.3% in the second quarter of this year compared to the same three-month period last year, the central bank said on Friday, adding that 15 of 18 industrial sectors in the South American country reported growth. The bank said in a statement that the quarterly expansion was largely due to increased government and consumer spending.
Underlying U.S. inflation moderated in August, with the annual rise in prices excluding food and energy falling below 4.0% for the first time in more than two years, welcome news for the Federal Reserve as it ponders the monetary policy outlook.
Federal Reserve Bank of New York President John Williams said Friday the central bank may be done with rate rises as inflation pressures, while still elevated, are moving back toward the official 2% target. "My current assessment is that we are at, or near, the peak level of the target range for the federal funds rate," Williams said in a speech text.
Investors continued piling into exchange-traded funds that track U.S. government debt in the third quarter, with retail investor flows hitting their highest level since the pandemic on bets that the Federal Reserve is done hiking rates.
* Gold set to drop 4.3% in September. * PCE data shows inflation slowing. * Platinum, palladium eye quarterly gains. By Ashitha Shivaprasad. Gold prices extended declines on Friday and were on track for monthly and quarterly declines on expectations that the U.S. central bank may keep interest rates elevated for longer. Spot gold fell 0.5% to $1,855.95 per ounce by 11:20 a.m. EDT.
MSCI'S global equities index rose on Friday while U.S. Treasury yields dipped with the dollar after encouraging inflation data from Europe and the United States boosted investor hopes that the Federal Reserve may be done with hiking interest rates.
A measure of inflation closely watched by the Federal Reserve has now averaged near the central bank's 2% target for the last three months, another step forward in the Fed's inflation battle and a sign that price increases have continued slowing despite better-than-expected job and economic growth.
U.S. Treasury yields slid on Friday, with the benchmark
10-year tumbling from 16-year highs, after
key consumer price data
for August pointed to decelerating inflation and raised ...
HSBC Holdings PLC (HSBC): * HSBC Holdings PLC (HSBC) - ISSUANCE OF SENIOR UNSECURED NOTES. * HSBC (HSBC) - ISSUED EUR65MLN 5.240% FIXED RATE NOTES DUE 2043 UNDER ITS DEBT ISSUANCE PROGRAMME Source text for Eikon: Further company coverage:
A measure of inflation closely watched by the Federal Reserve has now averaged near the central bank's 2% target for the last three months, another step forward in the Fed's inflation battle and a sign that price increases have continued slowing despite better-than-expected job and economic growth.
* TSX up 0.3% * IT leads sectoral gains. * TSX set for worst month since May. * Canada's economy stalled in July. * Aritzia (ATZAF) up on strong Q2 results. By Khushi Singh.
* Nike (NKE) jumps on Q1 profit beat. * Aug PCE data softer than expected. * Carnival gains after FY profit forecast raise. * All three indexes set to log quarterly declines.
* Consumer spending increases 0.4% in August. * Core PCE price index gains 0.1%; up 3.9% year-on-year. * Personal income rises 0.4%; saving rate dips to 3.9% By Lucia Mutikani.
Treasury yields slid on Friday after a core reading of the
personal consumption expenditures price index pointed to a
further deceleration in inflation, increasing the outlook that
the Federal ...
- U.S. equity funds witnessed robust outflows in the seven days to Sept. 27 on worries about a potential extension of the Federal Reserve's restrictive monetary policy and a renewed surge in Treasury yields. According to LSEG data, U.S. equity funds suffered outflows of a net $11.69 billion, the biggest of any week since June 21.
- The Federal Reserve held its benchmark overnight interest rate steady at its Sept. 19-20 policy meeting. The Fed's target policy rate has been raised to the 5.25%-5.50% range from near zero in March of 2022, and inflation measured by the Fed's preferred personal consumption expenditures price index was 3.5% in August, compared to a peak of 7% last summer.
Brazil's jobless rate dropped for the fifth consecutive rolling quarter in the three months ended in August, reaching its lowest since early 2015 as the labor market in Latin America's largest economy continues to show resilience.
U.S. consumer spending increased in August, but underlying inflation moderated, with the year-on-year rise in prices excluding food and energy slowing to below 4.0%. With gasoline price surging, inflation as measured by the personal consumption expenditures price index rose 0.4% in August after climbing 0.2% in July.
Treasury yields pared some early losses on Friday after the personal consumption expenditures price index increased slightly more than expected in August. The PCE price index rose 0.4% last month after climbing 0.2% in July.
Underlying U.S. inflation moderated in August, with the annual rise in prices excluding food and energy falling below 4.0% for the first time in more than two years, welcome news for the Federal Reserve as it ponders the monetary policy outlook.
U.S. consumer spending increased in August, but underlying inflation moderated, with the year-on-year rise in prices excluding food and energy slowing to below 4.0%. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, gained 0.4% last month, the Commerce Department reported on Friday. Some the rise in spending last month reflected higher prices.
U.S. stock index futures extended gains on Friday after data showed a closely-watched measure of inflation was softer-than-expected, keeping alive hopes of a pause in interest rate hikes from the Federal Reserve.
Mozambique's lawsuit against Credit Suisse and shipbuilder Privinvest over the decade-old "tuna bond" scandal in London could pitch one of the world's poorest nations against corporate heavyweights in a $1.5 billion-plus battle next week.
Brazil saw its nominal deficit, which includes payments on the public debt, surge to 7.3% of the gross domestic product in the 12 months ending in August, central bank data showed on Friday. This marks the worst performance since May 2021, when it reached 8.8% of GDP, following a nominal deficit of 106.6 billion reais in August only.
- Global bond funds saw their biggest weekly outflows in more than a month on concerns that U.S. and European central banks will keep interest rates higher for longer to curb inflationary pressures.
The equation for financial markets over the last few months has been simple and painful: A near 30% surge in oil prices + a steep rise in borrowing costs = a clattering for global stocks and bonds. Sub plots have included Saudi Arabia and Russia cutting crude supplies and two African coups, but the main theme has been the Federal Reserve & Co continuing to crank up interest rates.
Global bond funds saw their biggest weekly outflows in more than a month on concerns that U.S. and European central banks will keep interest rates higher for longer to curb inflationary pressures.
Brazil's government debt as a share of gross domestic product increased to 74.4% in August from 74.0% the month before, central bank data showed on Friday. The Brazilian public sector posted a primary deficit of 22.83 billion reais for the month, narrower than the 25.8 billion reais forecast by economists polled by Reuters.
Futures for Canada's main stock index moved higher on Friday, supported by a rise in prices of most commodities, while investors remained cautious ahead of the release of domestic GDP data and a key U.S. inflation report. September futures on the S&P/TSX index were up 0.5% at 7:20 a.m. ET. The benchmark index is set to log its first quarterly decline in a year.
* Nike (NKE) jumps on Q1 profit beat. * All three indexes set to log quarterly declines. * Futures up: Dow 0.49%, S&P 0.49%, Nasdaq 0.62% By Ankika Biswas and Shashwat Chauhan.
By Naomi Rovnick and Dhara Ranasinghe. World shares nudged higher on Friday, while better-than-expected euro zone inflation data boosted government bonds, with both asset classes still set for their worst quarter in a year in response to central banks' pledge to keep interest rates high.
* Futures up: Dow 0.39%, S&P 0.40%, Nasdaq 0.57% U.S. stock index futures rose on Friday as Treasury yields eased from multi-year highs and powered gains in megacap stocks, while investors awaited a crucial inflation metric to assess the outlook for the Federal Reserve's monetary policy.
* EM stocks, FX eye quarterly declines. * China stock markets closed for week-long holiday. * S&P to publish Turkey credit rating review. * India misses out on FTSE Russell index inclusion. By Amruta Khandekar and Johann M Cherian.
Hong Kong shares rebounded on the last trading day of September, tracking Wall Street gains overnight due to a pullback in U.S. Treasury yields from multi-year highs. The rally was also driven by positive forecasts for September manufacturing purchasing managers' index data to be released on Saturday.
There's a looming partial shutdown of the U.S. government, embattled developer China Evergrande on the brink, and markets still adjusting to central banks' higher for longer rates mantra. If that wasn't enough to kick off the final quarter of 2023, there's central bank meetings from Australia to Poland and closely-watched U.S. jobs data - if not delayed by a shutdown.
Asian shares had their best day in weeks on Friday but were still on track for their worst quarterly performance in a year as worries over elevated interest rates dragged on sentiment, while the dollar wobbled and oil prices held their ground. MSCI's broadest index of Asia-Pacific shares outside Japan gained 1%, and were set for their biggest one-day percentage rise in four weeks.
The yen's slide to the cusp of 150 per dollar has put investors on high alert for the risk of intervention. At its core, the yen's 3% slide in September to its weakest in 11 months at 149.71 on Wednesday is a result of the Bank of Japan's hesitancy exiting an ultra-easy monetary policy while the U.S. Federal Reserve keeps its options open for further tightening.
As the final stretch of the year approaches, there's relief in markets that the sharpest global monetary tightening cycle in decades is finally nearing an end. Yet, the strain from interest rate hikes has just started to come through and with central banks signalling that rates will likely stay higher for longer, the notion of something "breaking" remains strong.
As the final stretch of the year approaches, there's relief in markets that the sharpest global monetary tightening cycle in decades is finally nearing an end. Yet, the strain from interest rate hikes has just started to come through and with central banks signalling that rates will likely stay higher for longer, the notion of something "breaking" remains strong.
The Bank of Japan bought 300 billion yen of bonds with maturities between 5 and 10 years on Friday, intervening in the market to bring down government bond yields which hit their highest in a decade.
Hong Kong shares rebounded on Friday from the lowest level in 2023 hit in the previous session, as Wall Street gained overnight due to a pullback in U.S. Treasury yield from multi-year highs.
A look at the day ahead in European and global markets from Ankur Banerjee. As the rally in Treasury yields and oil prices takes a breather, investors are attempting a bit of a risk-on rally to close out a bruising third quarter, but sentiment remains at the mercy of worries over persistently higher interest rates. Europe wakes up to a drooping dollar and firmer Asian markets.
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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