- A searing late-year rally has brought the S&P 500 to a fresh 2023 closing high, as investors bet the Federal Reserve is done raising interest rates and the U.S. economy will remain resilient in the face of tighter monetary policy. The benchmark index closed at 4,594.63, nearly 6 points above its previous closing high for 2023 set in late July.
The benchmark S&P 500 index closed at its highest level of the year on Friday amid growing optimism the Federal Reserve was done raising U.S. interest rates and could begin to cut them next year as inflation cools. The index closed at 4,594.63 points, up 26.83 points, or 0.59%, and topping the close on July 31 at 4,588.96, which had been the prior high of 2023.
MSCI's global stock index rose on Friday and marked its fifth straight weekly gain while U.S. Treasury yields and the dollar fell on the day as investors were encouraged by Federal Reserve Chair Jerome Powell's vow to move "carefully" on interest rates.
The benchmark S&P 500 index closed at its highest level of the year on Friday amid growing optimism the Federal Reserve was done raising U.S. interest rates and could begin to cut them next year as inflation cools. The index closed at 4,594.63 points, up 26.83 points, or 0.59%, and topping the close on July 31 at 4,588.96, which had been the prior high of 2023.
* TSX ends up 1.1% at 20,452.87. * Posts its highest closing level since Sept. 18. * Industrials and bond proxies among biggest gainers. * National Bank of Canada (NTIOF) rallies after Q4 results. By Shashwat Chauhan and Fergal Smith.
The benchmark S&P 500 index closed at it's highest level of the year on Friday amid growing optimism the Federal Reserve was done raising U.S. interest rates and could begin to cut them next year as inflation cools. The index closed at 4,594.63 points, up 26.83 points, or 0.59%, and topping the close on July 31 at 4,588.96, which had been the prior high of 2023.
* Powell acknowledges risks of over-tightening. * ISM shows U.S. manufacturing weakness persists. * Pfizer (PFE) dips as obesity drug trial dropped. * Tesla slips as Cybertruck priced above initial forecast. By Stephen Culp.
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Latam stocks up 1.3%, FX up 1%
(Updated at 3pm ET/2000 GMT)
By Johann M Cherian
Dec 1 (Reuters) - Most Latin American stocks ...
The dollar fell on Friday, after two days of gains, as Federal Reserve
Chair Jerome Powell struck a cautious tone on further interest rate moves, saying that the risk of under- or
over-tightening is ...
- Investors seeking justification for breathtaking rallies in stocks and bonds are finding hope in the words of Federal Reserve Chair Jerome Powell, even as the central bank insists the fight against inflation has a long way to go.
* Powell acknowledges risks of overtightening. * ISM shows U.S. manufacturing weakness persists. * Pfizer (PFE) dips as obesity drug trial dropped. * Tesla slips as Cybertruck priced above initial forecast. * Indexes up: Dow 0.72%, S&P 0.48%, Nasdaq 0.36% By Stephen Culp.
- 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.
MSCI's global stock index gained ground on Friday, while U.S. Treasury yields and the dollar were lower after Federal Reserve Chair Jerome Powell vowed to move "carefully" on interest rates.
Brazil posted a trade surplus of $8.78 billion in November, government data showed on Friday, below a forecast of economists polled by Reuters. The surplus, an increase of 41.5% compared with the same month last year, was driven by a 11.2% drop in the value of imports, which landed at $19.04 billion. Exports in the month rose 0.6% to $27.82 billion.
The Bank of Japan's massive asset-buying scheme introduced in 2013 led to a sharp deterioration in the function of the country's bond markets, which continued to worsen after the adoption of its yield curve control, a central bank survey of market participants showed on Friday.
By Jamie McGeever. Even as traders bring forward the expected timing of the Federal Reserve's first interest rate cut, the gap since the U.S. central bank's last hike will probably be one of the longest on record.
The dollar fell on Friday, after two days of gains, as Federal Reserve
Chair Jerome Powell struck a cautious tone on further interest rate moves, suggesting the U.S. central bank
is likely done with ...
* Manufacturing PMI unchanged at 46.7 in November. * New orders continue to decline, but at moderate pace. * Factory employment decreases as hiring slows down. By Lucia Mutikani. U.S. manufacturing remained subdued in November, with factory employment declining further as hiring slowed and layoffs increased, more evidence that the economy was losing momentum after robust growth last quarter.
The risks of the Federal Reserve slowing the economy more than necessary have become "more balanced" with those of not moving interest rates high enough to control inflation, Fed Chair Jerome Powell said on Friday, reaffirming the U.S. central bank's intent to be cautious but also offering fresh optimism on its progress so far.
South Africa's rand strengthened against the dollar on Friday, reversing its losses from the previous day, as U.S. Federal Reserve Chair Jerome Powell said the Fed would move "carefully" on interest rates. At 1619 GMT, the rand traded at 18.6150 against the dollar, about 1.2% stronger than its previous close.
MSCI's global stock index gained ground on Friday, while the U.S. dollar slipped after Federal Reserve Chair Jerome Powell vowed to move "carefully" on interest rates.
Euro zone bond prices rose on Friday, a day after clocking their best month in more than a year, as soft U.S. data and comments from Federal Reserve Chair Jerome Powell supported the view that rate cuts could come as early as the first quarter next year.
Brazil's central bank still sees its current pace of 50-basis-point interest rate cuts per meeting as appropriate and expects it to remain in place for the next few meetings, multiple board members said on Friday.
The U.S. manufacturing sector?s struggle persisted through November, with the Institute for Supply Management Manufacturing Purchasing Managers? Index remaining in contractionary territory at 46.7. This figure, unchanged from October, missed market forecasts of 47.6, marking the thirteenth month of consecutive contraction for the U.S. manufacturing sector.
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Latam stocks up 0.2%, FX up 0.5%
By Johann M Cherian
Dec 1 (Reuters) - Most Latin American stocks and
currencies rose on Friday, ...
The risks of the Federal Reserve slowing the economy more than necessary have become "more balanced" with those of not moving interest rates high enough to control inflation, Fed Chair Jerome Powell said on Friday, reaffirming the U.S. central bank's intent to be cautious but also offering fresh optimism on its progress so far.
The risks of the Federal Reserve moving too far with interest rate hikes, and slowing the economy more than necessary, have become "more balanced" with those of not moving high enough to control inflation, Fed Chair Jerome Powell said on Friday in remarks reaffirming the U.S. central bank's intent to be cautious in its upcoming monetary policy decisions.
U.S. construction spending increased more than expected in October amid strong gains in single-family homebuilding, but data for the prior month was revised lower. The Commerce Department said on Friday that construction spending rose 0.6%. Data for September was revised down to show construction spending climbing 0.2% instead of 0.4% as previously reported.
The dollar rose for a third straight day on Friday, while the
euro extended steep overnight losses, as traders looked ahead to a speech later in the day by U.S. Federal
Reserve Chair Jerome Powell.
National Bank of Canada (NTIOF): * NATIONAL BANK OF CANADA ANNOUNCES ITS INTENTION TO LAUNCH A NORMAL COURSE ISSUER BID. * National Bank of Canada (NTIOF) - AUTHORIZED A NORMAL COURSE ISSUER BID TO PURCHASE FOR CANCELLATION UP TO 7 MILLION OF ITS COMMON SHARES.
Chicago Federal Reserve President Austan Goolsbee said on Friday he believes inflation is "on track" to reaching the U.S. central bank's 2% target, driven in coming months by what he expects to be a decline in housing inflation.
U.S. construction spending increased more than expected in October amid strong gains in single-family homebuilding, but data for the prior month was revised lower. The Commerce Department said on Friday that construction spending rose 0.6%. Data for September was revised down to show construction spending climbing 0.2% instead of 0.4% as previously reported.
U.S. manufacturing remained subdued in November, with factory employment declining further as hiring slowed and layoffs increased, more evidence that the economy was losing momentum after robust growth last quarter. The survey from the Institute for Supply Management on Friday followed on the heels of data on Thursday showing moderate growth in consumer spending and subsiding inflation in October.
* Gold up over 3% so far for the week. * Fed to move 'carefully' on interest rates. * Silver hits six-month high. By Ashitha Shivaprasad and Deep Kaushik Vakil.
The U.S. dollar made something of a comeback in the last two days of November, following a month of losses as markets leveraged rising expectations the Federal Reserve will start cutting rates in the first quarter of 2024.
* Powell due to speak at 11:00 a.m. ET. * Tesla slips as Cybertruck priced above initial forecast. * Indexes: Dow up 0.09%, S&P down 0.20%, Nasdaq down 0.48% By Shristi Achar A and Amruta Khandekar. Dec 1 - The S&P 500 and Nasdaq fell on Friday as investors were on edge ahead of Federal Reserve Chair Jerome Powell's comments that some fear may have a hawkish tilt towards monetary policy.
New Orders and Backlogs Contracting; Employment and Production Contracting; Supplier Deliveries Faster; Raw Materials Inventories Contracting; Customers' Inventories Too High; Prices Decreasing; Exports and Imports Contracting. TEMPE, Ariz.
AM Best has assigned the Financial Strength Rating of B and the Long-Term Issuer Credit Rating of ?bb+? to Mongolian National Reinsurance JSC. The ratings reflect Mongolian Re?s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
Canada's manufacturing sector contracted for a seventh straight month in November as global industrial weakness weighed on output and new orders, and despite an increase in hiring, data showed on Friday. The S&P Global Canada Manufacturing Purchasing Managers' Index fell to a seasonally adjusted 47.7 in November from 48.6 in October. A reading below 50 indicates contraction in the sector.
-Some major banks expect global economic growth to ease further in 2024, squeezed by elevated interest rates, higher energy prices and a slowdown in the world's two largest economies.
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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