- Minutes of the U.S. Federal Reserve's half-a-percentage-point rate cut last month, to be released on Wednesday, may provide a final word on just how divided policymakers were over a decision that took many economists by surprise and sparked the first dissent from a member of the Board of Governors in 19 years.
* Futures lower: Dow 0.16%, S&P 500 0.15%, Nasdaq 0.20% Stock index futures fell on Wednesday as investors awaited the release of minutes from the Federal Reserve's last meeting for insight into the interest-rate path, while Alphabet dipped after the U.S. said it was considering breaking up Google.
* Boeing (BA) considers issuing stock and equity-like securities to raise cash. * Investment banks have been building shadow books, fielding investor inquiries. * Analysts estimate Boeing (BA) needs $10-$15 billion to maintain credit ratings. By Shankar Ramakrishnan, Allison Lampert, Echo Wang, Mike Stone.
* Minutes may reveal division among Fed policymakers over rate cut. * Investors expect further rate cuts in November and December. * Upcoming inflation data crucial for future rate cut decisions. By Howard Schneider.
It may not quite be the famous question of Shakespeare's Hamlet, but it is something very much on the minds of U.S. homeowners these days: To refi or not to refi? Judging from the latest numbers, there is a lot of pent-up demand for Americans looking to refinance their home mortgages.
JPMorgan Chase and Wells Fargo kick off?earnings for the sector on Friday, and investors are expected to focus on the big banks' forecasts for net interest income after strong jobs data fueled uncertainty about the path of future Federal Reserve rate cuts. Both banks are expected to report lower profits for the third quarter after interest income may shrink while loan demand remained subdued.
* Fed's September meeting minutes due at 1800 GMT. * Gold hit its lowest since Sept. 20 in the last session. * Analyst sees range-bound trading with limited downside rallies. By Rahul Paswan.
The global economy could face losses of $14.5 trillion over a five-year period from a hypothetical geopolitical conflict which hits supply chains, insurance market Lloyd's of London said on Wednesday. The economic impact would result from severe damage to infrastructure in the conflict region and the potential for compromised shipping lanes, Lloyd's said in a statement.
China's new yuan loans likely jumped in September from August, a Reuters poll showed on Wednesday, as the central bank ramps up stimulus to drive the sputtering economy towards this year's growth target. Banks likely issued 1.87 trillion yuan in net new yuan loans last month, the median of 16 economists' estimates showed.
The New Zealand dollar slumped on Wednesday after the country's central bank cut interest rates by 50 basis points, while the U.S. dollar nudged up against most currencies and hit a new two month high on a basket of peers. The kiwi tumbled 0.8% on the U.S. dollar to $0.6086 and hit its lowest in nearly two months after the.
Several European Central Bank policymakers argued their case on Wednesday for another interest rate cut next week, even if some of their colleagues remained unconvinced as turmoil in the Middle East fuels volatility in energy costs.
* ECB policymakers advocate for rate cut amid economic slowdown. * Investors expect ECB to lower deposit rate to 3.25%, cut further. * Divergent views within ECB on rate cuts due to volatile energy costs. By Balazs Koranyi.
Singapore's central bank is widely expected to keep monetary policy unchanged next week and hold off easing settings amid inflation and growth uncertainties caused by geopolitical tensions. Of the 10 analysts polled by Reuters, nine expect the Monetary Authority of Singapore to hold off making changes to its policy at the scheduled review next Monday.
Decarbonisation of the global economy is progressing too slowly and while there has been improvement among big developed economies, emerging markets have failed to make reductions, Fitch Ratings warned in a report published on Wednesday. World CO2 emissions rose by 1.8% last year compared to world gross domestic product growth of 2.9%, the report said.
* China stocks off lows after MOF calls news conference. * Shanghai Composite -4%; Hang Seng flat. By Tom Westbrook. Chinese shares slumped and commodities were struggling to find a footing on Wednesday as investors tempered expectations for a robust Chinese economic recovery, while a downbeat outlook from New Zealand's central bank sent the kiwi to a seven-week low.
Japanese government bonds yields edged higher on Wednesday but lacked momentum amid a dearth of catalysts a day ahead of a keenly anticipated U.S. consumer price report.
The dollar drifted sideways on Wednesday, giving some relief to the yen and other major currencies after a sharp rally to a seven-week high last week, as investors paused to assess the interest rate outlook for the United States.
The European Central Bank is very likely to reduce its interest rates next week, policymaker Francois Villeroy de Galhau said on Wednesday. Villeroy, who is also the head of the French central bank, has said the ECB would likely cut interest rates later this month due to weak economic growth.
Italy's demographics are the worst in Europe in terms of economic growth potential between 2023 and 2040, Scope Ratings said on Wednesday, with a rapidly ageing population posing a threat to the country's strained public finances.
The dollar drifted sideways on Wednesday, giving some relief to the yen and other major currencies after a sharp rally to a seven-week high last week, as investors paused to assess the interest rate outlook for the United States.
Most emerging Asian currencies gained
ground against a muted dollar on Wednesday as investors stood on
the sidelines to assess the future rate cut path by the Federal
Reserve, while a potential ...
European Central Bank policymaker Yannis Stournaras is backing two interest rate cuts this year and expects further easing in 2025 as inflation continues to trend lower, he told the Financial Times in an interview published on Wednesday.
The Reserve Bank of India kept its key interest rate unchanged on Wednesday as widely expected, but changed its policy stance to "neutral", opening the door for rate cuts as early as December. India has lagged global peers in easing policy as inflation has remained above target due to high food prices.
European Central Bank policymaker Yannis Stournaras is backing two interest rate cuts this year and expects further easing in 2025, he told the Financial Times in an interview published on Wednesday.
* Fed's September meeting minutes due at 1800 GMT. * Gold could get a nice bump if U.S. CPI comes in soft - analyst. By Daksh Grover and Ashitha Shivaprasad. Gold prices were subdued on Wednesday as investors strapped in for minutes from the Federal Reserve's latest policy meeting for insights into the U.S. central bank's interest rate trajectory.
* Fast Retailing's (FRCOF) profit likely rose 24% to 478.3 billion yen. * Key factors: Japan's fall/winter sales, China business recovery. * Shares up 43% in 2024, outperforming Nikkei's 16% rise. By Rocky Swift.
New Zealand's central bank slashed rates by 50 basis points on Wednesday and said policy is still restrictive even though inflation has returned to target, prompting markets to bet on yet more aggressive easing and sending the kiwi dollar skidding.
* RBNZ's outsized cut prompts bets for another 50 bp cut in Nov. * RBNZ says inflation is within 1%-3% target, sees subdued economy. * New Zealand dollar slips, swaps fall on dovish policy stance. By Lucy Craymer.
The New Zealand dollar slumped on Wednesday after the country's central bank cut interest rates by 50 basis points, while the U.S. dollar nudged up against most currencies and hit a new two month high on a basket of peers.
The dollar drifted sideways on Wednesday, giving some relief to the yen and other major currencies after a sharp rally to a seven-week high last week, as investors paused to assess the interest rate path outlook for the United States. The New Zealand dollar slumped to its lowest since Aug. 19 at $0.6096, after the Reserve Bank of New Zealand cut interest rates by 50 basis points.
The New Zealand dollar fell on Wednesday after the country's central bank cut its cash rate by 50 basis points to 4.75% and said it assesses that annual consumer price inflation is within its 1% to 3% inflation target range. The kiwi was last down 0.54% at $0.6103 after the policy decision that was in line with market pricing and most economists' expectations.
New Zealand's central bank slashed the cash rate by 50 basis points to 4.75% on Wednesday and said it assesses that annual consumer price inflation is within its 1% to 3% inflation target range.
- The Federal Reserve's 50-basis-point interest-rate cut last month was "timely" and was neither reactive, nor proactive, Fed Vice Chair Philip Jefferson said on Tuesday. "It was timely and consistent" with the Fed's two mandates of attaining 2% inflation and maximum employment, Jefferson said at Davidson College in North Carolina.
Gold prices held steady on Wednesday as traders awaited cues on U.S. interest rate policy from the minutes of the Federal Reserve's latest meeting. FUNDAMENTALS. * Spot gold held its ground at $2,622.24 per ounce by 0020 GMT, after falling more than 1% in the previous session. * Minutes from the Fed's September policy meeting are due at 1800 GMT.
- Federal Reserve Vice Chair Philip Jefferson on Tuesday said the U.S. central bank's half-percentage-point interest-rate cut last month was aimed at keeping the labor market strong even as inflation continues to ease.
A look at the day ahead in Asian markets. Wall Street got back on track Tuesday, encouraged that the Fed seems confident enough in the U.S. growth picture to ease up on the easing, but investors have been reticent ahead of the release of minutes from the September FOMC where officials took the most dovish possible policy turn to ensure the US jobs machine keeps humming.
A look at the day ahead in Asian markets. Wall Street got back on track Tuesday, encouraged that the Fed seems confident enough in the U.S. growth picture to ease up on the easing, but investors have been reticent ahead of the release of minutes from the September FOMC where officials took the most dovish possible policy turn to ensure the US jobs machine keeps humming.
Boeing is examining options to raise billions of dollars through a sale of stock and equity-like securities, two sources familiar with the matter said, as the planemaker tries to avoid slipping in to junk territory on its credit ratings.
* Boeing (BA) considers issuing stock and equity-like securities to raise cash. * Investment banks have been building shadow books, fielding investor inquiries. * Analysts estimate Boeing (BA) needs $10-$15 billion to maintain credit ratings. By Shankar Ramakrishnan, Allison Lampert, Echo Wang, Mike Stone.
Federal Reserve Bank of Boston President Susan Collins said Tuesday she's not seeing any major signs of financial sector troubles in the economy right now. Broadely speaking, "the financial system is in a relative good place" right now, Collins told a conference at her bank.
* China's stimulus details disappoint, impacting global stocks. * U.S. inflation data and corporate earnings in focus. * U.S. Treasury yields rise on recalibrated Fed expectations. By Chuck Mikolajczak.
* U.S. 10-year yields hit new 10-week high. * U.S. two-year yields pull back from seven-week peaks. * U.S. yield curve steepens. * U.S. three-year note auction shows lackluster results. By Gertrude Chavez-Dreyfuss.
The dollar held firm on Tuesday, treading water just under
last week's seven-week highs as investors assessed the outlook
for further U.S. rate cuts, with concerns about the conflict in
the ...
Global ratings agency S&P said on Tuesday it had placed Boeing's (BA) rating on CreditWatch negative as about 33,000 of its workers remain on strike, halting production of its best-selling jets.
Uruguay's central bank on Friday held its benchmark interest rate at 8.50%, the monetary authority said on Tuesday, saying inflation remained in line with forecasts and the economy is expected to grow in coming quarters.
Federal Reserve Bank of Boston President Susan Collins said on Tuesday that with inflation trends growing weaker it is very probable that the U.S. central bank can deliver more interest rate cuts. "Further adjustments of policy will likely be needed," Collins said in the text of a speech to be delivered before a conference at her bank.
Argentina's industrial output dropped 6.9% in August from a year earlier in non-seasonally adjusted terms, while growing 1.5% from July in seasonally adjusted terms, the INDEC statistics agency said on Tuesday.
* China's stimulus details disappoint, impacting global stocks. * U.S. inflation data and corporate earnings in focus. * U.S. Treasury yields rise on recalibrated Fed expectations. By Chuck Mikolajczak. NEW YORK, Oct 8 - A gauge of global stocks was flat on Tuesday after details over China's stimulus disappointed as investor focus shifts to upcoming U.S. inflation data and corporate earnings.
Last week's jobs numbers confirm the U.S. labor market remains strong even though it may be slowing, with a 4.1% unemployment rate around what is considered full employment and employers adding jobs faster than what is needed to account for population growth, Atlanta Federal Reserve President Raphael Bostic said on Tuesday.
The Brazilian Senate's Economic Affairs Committee on Tuesday approved Gabriel Galipolo to head the central bank starting January, replacing current governor Roberto Campos Neto, whose term expires this year. Appointed by leftist President Luiz Inacio Lula da Silva for the position, Galipolo currently serves as the bank's monetary policy director.
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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