US equity indexes closed lower this week amid divergent bank earnings, hot-and-cold inflation data, and the threat to the Federal Reserve's independence from a Department of Justice probe. * The S&P 500 closed at 6,940.01 on Friday versus 6,966.28 a week ago.
The Federal Reserve should keep the door open to interest rate cuts amid a fragile labor market, Vice Chair for Supervision Michelle Bowman said Friday. While the US economy continues to grow at a strong pace, the labor market has become "increasingly more fragile," Bowman said in prepared remarks for delivery in Massachusetts.
According to Avery Shenfeld, in his 'Week Ahead' market call, a 0.4% drop on Monday in the CPI for December would represent a trend-like 0.2% rise in seasonally adjusted terms, and leave the 12-month rate at 2.2%. He said that's "quite favourable" given that there's an upward bias in the 12-month figure because the prior December benefited from a short lived sales tax holiday on items like rest...
US benchmark equity indexes were higher intraday as markets evaluated shifting dynamics in the race to replace Jerome Powell as Federal Reserve chair. The S&P 500 and the Nasdaq Composite were up 0.2% each at 6,956.1 and 23,571.8, respectively, after midday Friday.
US industrial production increased more than expected in December, led by a rebound in utilities, data from the Federal Reserve showed Friday. Industrial output rose 0.4% last month following a similar, upwardly revised pace of growth in November. Utilities output expanded 2.6% in December following a 0.3% contraction the month before, underpinned by gains in natural gas, the Fed said.
Canadian housing starts came in at a "robust" 282,400 annualized units in December, marking an 11% month-over-month increase from November's level, said TD. The picture was unchanged on a trend basis, however, with the six-month moving average of starts clocking in at 264,400 units, the bank added.
The total monthly seasonally adjusted annual rate of housing starts for all areas in Canada was up 11% in December at 282,439 units compared with November's 254,625 units, said the Canada Mortgage and Housing Corp. Friday. The rural starts monthly SAAR estimate was 12,271 units, noted CMHC.
Canada started 2025 with moderate optimism on the housing market with the expectation it would benefit from the easing in the Bank of Canada policy rate since the summer of 2024, along with the resulting decline in mortgage rates, said Scotiabank. The bank was also expecting economic and income conditions to firm up in 2025, which would have added support to housing demand.
Canada's data run isn't that encouraging this week, with housing remaining soft in December, while manufacturing and wholesale volumes were weak in November, said Bank of Montreal. Emphasizing the first theme is an expected decline in December housing starts at 8:15 a.m. ET on Friday, noted the bank.
Mitsubishi UFJ Financial Group (MUFG) said Thursday that the Federal Reserve Bank of New York has designated its registered broker-dealer, MUFG Securities Americas, as a primary dealer. The company said MUFG Securities Americas, as a primary dealer, will serve as a trading counterparty with the New York Fed. MT Newswires does not provide investment advice.
US equity indexes were off session highs at the close on Thursday after Federal Reserve heavyweights outlined the consequences of damaging the central bank's independence, undermining the boost to risk sentiment from strong earnings and rolling back of threats to strike Iran. The Nasdaq Composite climbed 0.3% to 23,530.02, giving up gains of as much as 1% earlier in the session.
Weekly applications for unemployment insurance in the US unexpectedly fell, while continuing claims also moved lower, government data showed Thursday. For the week through Jan. 10, the seasonally adjusted number of initial claims dropped by 9,000 to 198,000, the Department of Labor said. The four-week moving average totaled 205,000, its lowest level since Jan. 20, 2024, the DOL said.
The Toronto Stock Exchange is up 117 points, passing the 33,000 level, to a new record high. The best performers are industrials and financials. Canadian existing home sales fell 2.7% month-on-month in December, marking a second straight monthly drop, and largest decline since March. Average home prices were flat on m/m basis in December.
European stock markets closed mostly higher Thursday as the Stoxx Europe rose 0.5%, Germany's DAX 40 gained 0.3%, the FTSE 100 climbed 0.5%, and the Swiss Market Index increased 0.1%. France's CAC 40 eased 0.2%. In Germany, annual gross domestic product grew 0.2% in 2025, according to the Federal Statistical Office.
China's central bank announced several targeted easing measures earlier Thursday at a joint briefing with State Administration of Foreign Exchange, said Societe Generale.
After two years of a mild recession, the German economy returned to modest growth in 2025, said Berenberg after Thursday's gross domestic product data. Helped by a 1.4% rise in private and a 1.5% increase in public consumption, calendar-adjusted GDP edged up by 0.3% last year, noted the bank.
Canadian existing home sales declined 2.7% month over month in December, marking the second straight monthly drop and the largest decline since March, said TD after the Canadian Real Estate Associaton released data on Thursday. New listings decreased 2% month over month in December, a fourth straight monthly drop.
Rosenberg Research said Thursday it "marvels" over the unanimous opinion among Bay Street economists that the Bank of Canada is done in this easing cycle. Many think the next move is a tightening and the markets seem to have bought into that "illusion," the research said, before adding: "A pause is only a pause."
US initial jobless claims fell to a level of 198,000 in the week ended Jan. 10 from a downwardly revised 207,000 level in the previous week, compared with expectations for an increase to 215,000 in survey of analysts compiled by Bloomberg. The four-week moving average declined by 6,500 to 205,000 after decreasing by 8,500 to a level of 211,500 in the previous week.
Canada's housing market was still chilled in December, with existing home sales falling 2.7% in the month and 4.5% from a year ago, said Bank of Montreal. With new listings also down 2% in the month, the market balance didn't change much at the national level, and remains balanced overall, noted the bank.
The US dollar rose against its major trading partners early Thursday, except for a decline against the yen, ahead of a busy day of economic releases, starting with weekly jobless claims, import and export prices for November, and manufacturing data for January from the New York and Philadelphia Federal Reserve Banks, all at 8:30 am ET.
Canadian existing home sales fell 2.7% month-over-month seasonally adjusted in December, said Scotiabank after the release of data from the Canadian Real Estate Association on Thursday. Weather likely played a role as winter gripped large parts of the country earlier than normal in recent years, stated the bank. MT Newswires does not provide investment advice.
Orla Mining (ORLA) late on Wednesday provided an update on its South Railroad gold project in Nevada that includes the results of a feasibility study and board of directors' approval to begin spending for detailed engineering, procurement and project execution. The study reaffirms the project's strong economics, the company said.
Commerzbank in its "European Sunrise" note of Thursday highlighted: Markets: United States Treasuries turn sideways in late New York session, soften in Asia, Japanese government bond curve flattens. Fed: Federal Reserve Bank of Minneapolis President Neel Kashkari says inflation is too high, but trending in the right direction.
MUFG said the Bank of England is expected to cut rates by a further 50bps this year. Yields in the United Kingdom are still under downward pressure at the start of this year both at the short and long end of the curve, wrote the bank in a note to clients.
Major US equity indexes closed lower Wednesday amid disappointing bank earnings, mixed wholesale price inflation, and escalating geopolitical turmoil. * The US producer price index rose 0.2% in November, matching expectations and following a 0.1% gain in October.
Most Federal Reserve districts saw economic activity grow since late November, while the overall outlook was "mildly optimistic," the US central bank said in its latest Beige Book released Wednesday. Of the 12 districts, eight reported "slight to modest" growth, while three saw no change in activity.
Atlanta Fed President Raphael Bostic said that the FOMC should maintain its restrictive stance, saying that efforts to bring inflation down to the 2% goal have not been fully realized yet. Fed Governor Stephen Miran said that deregulation has the potential to slow cost increases while at the same time increasing potential output, supporting the FOMC's ability to lower rates further.
US producer price growth accelerated sequentially in November as the goods index turned positive, delayed official data showed Wednesday. The producer price index rose by 0.2% on a seasonally adjusted basis in November, after a 0.1% increase in October, according to the Bureau of Labor Statistics. Wholesale prices of goods advanced 0.9% in November, rebounding from a 0.4% drop in October.
Existing home sales in the US rose to the highest in nearly three years in December amid lower mortgage rates, data from the National Association of Realtors showed Wednesday. Sales increased 5.1% sequentially to a seasonally adjusted annual rate of 4.35 million units last month.
US retail sales rose more than projected in November as outlays on motor vehicles and at fuel stations turned positive, delayed government data showed Wednesday. Sales grew 0.6% sequentially in November, following a 0.1% decrease the previous month, the Census Bureau said. The report was delayed due to a 43-day federal government shutdown that ended in November.
Bank of Canada resumed routine Canada T-Bill purchases in December to keep pace with currency growth and maturing bonds, aiming to restore a balanced mix to its bond-heavy balance sheet, said Desjardins.
Angola's central bank Wednesday said its Monetary Policy Committee decided to cut the policy rate by 100bps to 17.50%. MT Newswires does not provide investment advice.
Government of Canada bonds cheapened on a cross-market basis after the Bank of Canada suggested that the easing cycle is now in the rearview mirror, said National Bank of Canada. The have gained back some ground recently, however, as incoming data in the United States and Canada has spilled over to performance across the curve, noted the bank.
The pace of US existing home sales rose by 5.1% to a 4.35 million seasonally adjusted annual rate in December from 4.14 million in November, compared with an expected increase to a 4.22 million rate in a survey compiled by Bloomberg, data from the National Association of Realtors released Wednesday showed.
National Bank of Canada (NTIOF) said Wednesday that it has opened an office in the Dubai International Financial Centre, United Arab Emirates, to "serve as a platform to support Canadian clients pursuing business opportunities in the Middle East". Ali Fares, managing director and head, Middle East and North Africa capital markets, has relocated to Dubai to lead the Bank's regional presence there.
The US Q3 current account deficit narrowed to $226.40 billion from a revised $249.22 billion in the previous quarter, compared with expectations of a $238.0 billion deficit from a survey compiled by Bloomberg. The narrower current account deficit reflected a smaller goods and services gap, a return to a surplus for primary income and smaller secondary income gap.
The US Producer Price Index rose by 0.2% in November following a 0.1% increase in October, as expected in a survey compiled by Bloomberg. Energy prices rose by 4.6% in the month, while food prices were flat. After excluding food and energy prices, core PPI were flat, below the 0.2% gain expected and following a 0.3% gain in the previous month.
US retail sales rose by 0.6% in November, a faster gain than the 0.5% increase expected in a survey compiled by Bloomberg and following the previous month's 0.1% decline. Excluding a 1% increase in motor vehicle sales, retail sales were still up 0.5% compared with an expected 0.4% gain.
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