* Retail sales up 0.7% in September despite shortages. * Goldman Sachs (GS) rises on strong third-quarter earnings. * Indexes up: Dow 1.1%, S&P 500 0.8%, Nasdaq 0.4% By Caroline Valetkevitch. NEW YORK, Oct 15 - U.S. stocks rose on Friday as Goldman Sachs (GS) was the latest big bank to report strong results and better-than-expected retail sales eased worries about demand.
Wall Street banks have been among the biggest beneficiaries of the pandemic-era trading boom, fueled by the Federal Reserve's massive injection of cash into financial markets.
Wall Street banks have been among the biggest beneficiaries of the pandemic-era trading boom, fueled by the Federal Reserve's massive injection of cash into financial markets.
Treasury yields rose and a
market indication of inflation expectations hit the highest
since 2005 on Friday as an unexpected increase in U.S. retail
sales in September added to bearish bond sentiment ...
Global investors are looking harder for pockets of opportunity and becoming more selective in their fixed income and equity allocations, some fund managers told Reuters, anticipating volatility spurred by quicker inflation and uncertainty around central bank policy.
Brazilian economic activity fell slightly more than analysts were expecting in August, a central bank index showed on Friday, as an economic recovery lost steam amid surging inflation. The IBC-Br economic activity index, a leading indicator of gross domestic product, fell by 0.15% in August from the month before, marking its first drop in three months.
Peru's gross domestic product expanded 11.83% in August compared with August 2020, marking six straight months of economic growth for the South American country, the government's INEI statistics agency said in a statement on Friday. The expansion in August was principally driven by the construction and manufacturing sectors, the agency said.
Turkey's central bank governor on Friday played down suggestions that some of the three policymakers dismissed this week opposed a rate cut sought by President Tayyip Erdogan, and said they left either of their own choice or because the bank wanted it.
Turkish Central Bank Governor Sahap Kavcioglu said on Friday that some of the three policymakers that were removed this week wanted to leave, while the bank preferred others to be let go, dismissing claims they opposed last month's rate cut.
Chile's peso slumped to a 15-month low on
Friday as political uncertainty weighed, while Brazil's real
rose after the central bank said inflation would likely peak
this month.
Euro zone government bond yields rose on Friday, at the end of a volatile week that saw them first hit multi-month highs then ease back as investors struggled to work out the extent to which rising energy prices would feed into inflation and growth.
* Retail sales up 0.7% in Sept. despite shortages. * Goldman Sachs (GS) rises on strong Q3 earnings. * Futures: Dow 0.63%, S&P 0.46%, Nasdaq 0.34% By Devik Jain and Federica Urso. Oct 15 - U.S. stock indexes were set for gains on Friday after Goldman Sachs (GS) rounded out a strong earnings season for big banks, while a surprise rise in retail sales strengthened views about economic recovery.
U.S. stocks rose on Friday as Goldman Sachs (GS) was the latest big bank to report strong results and better-than-expected retail sales eased worries about demand. The three major stock indexes were on track to post gains for the week as well. Goldman Sachs Group (GS) jumped 3.4%, giving the Dow its biggest boost, as a record wave of dealmaking activity drove a surge in the bank's quarterly profit.
U.S. retail sales unexpectedly rose in September in part as more expensive motor vehicles boosted receipts at auto dealerships, but there are fears that supply constraints could disrupt the holiday shopping season amid continued shortages of goods.
Sterling rose on Friday and was set for its biggest weekly gain against both the dollar and the euro since May, boosted by a combination of dollar weakness and expectations that the Bank of England will raise rates this year. The dollar was heading for a weekly decline and the Japanese yen sunk to a three-year low, as global risk appetite rebounded.
The spillover effect of China Evergrande Group's debt problems on the banking system is controllable, a central bank official said on Friday, in rare official comments on a liquidity crisis at China's No. 2 developer that has roiled global markets.
U.S. stocks rose on Friday as Goldman Sachs was the latest big bank to report strong results and better-than-expected retail sales eased worries about demand. The three major stock indexes were on track to post gains for the week as well. Goldman Sachs Group jumped 3.4%, giving the Dow its biggest boost, as a record wave of dealmaking activity drove a surge in the bank's quarterly profit.
* Futures: Dow 0.42%, S&P 0.34%, Nasdaq 0.27% By Devik Jain. U.S. stock futures edged higher on Friday and pointed to weekly gains for major indexes, ahead of results from Goldman Sachs, which is expected to round out a strong third-quarter earnings season for big banks. Shares of Wall Street's most prolific dealmaker were up 0.7% in premarket trading.
* Dismissed central bankers seen as opposed to latest rate cut. * Central bank survey shows 140 bps of rate cuts expected in 3 months. * Central bank policy meeting Thursday next week. * Lira has weakened 19% this year vs dollar. By Daren Butler and Jonathan Spicer.
Jerome Powell may still be the clear favorite to get renominated as Federal Reserve Chairman, but some investors are considering the long-shot alternative should there be a surprise change. Powell's odds in betting markets have fallen following sharp criticism of his performance by progressive Democrats and a trading scandal among Federal Reserve officials.
The spillover effect of China Evergrande Group's (EGRNF) debt problems on the banking system is controllable and individual financial institutions' risk exposures are not big, a central bank official said on Friday. Chinese authorities are urging Evergrande to step up asset disposals and the resumption of projects, Zou Lan, head of financial markets at the People's Bank of China, also told a briefing.
The spillover effect of China
Evergrande Group's (EGRNF) debt problems on the banking system is controllable and individual financial institutions' risk exposures are not big, a central bank official said on Friday. Chinese authorities are urging Evergrande to step up asset disposals and the resumption of projects, Zou Lan, head of financial markets at the People's Bank of China, also told a briefing.
The spillover effect of Evergrande's debt problems on the banking system is controllable and individual financial institutions' risk exposures are not big, a central bank official said on Friday. Chinese authorities are urging Evergrande to step up asset disposals and the resumption of projects, Zou Lan, head of financial markets at the People's Bank of China, also told a briefing.
Central European currencies
edged lower in a mild correction on Friday, giving up some of
their gains posted over the past week on rate hike expectations
by the region's central banks as ...
The euro zone's unadjusted trade surplus was much smaller then expected in August as the bloc had to pay much more for imported energy, data showed on Friday. The European Union's statistics office Eurostat said the external trade surplus of the 19 countries sharing the euro was 4.8 billion euros in August compared to 14.0 billion euros a year earlier.
Sterling rose to a three-week high in early trading on Friday and was on track for its best week since August versus the dollar, boosted by rising expectations that the Bank of England will raise rates this year. Many investors are betting the BoE will become the first major central bank to lift interest rates since the start of the coronavirus pandemic.
* BOJ seen trimming this fiscal year's inflation f'cast. * Dep gov Amamiya calls for vigilance to supply constraint impact. * Weak exports may force BOJ to offer bleaker view on economy. 28 meeting. By Leika Kihara.
The Bank of Japan is expected to downgrade its economic growth forecast for the current fiscal year as supply constraints caused by Asian factory shutdowns cripple output and exports, sources familiar with its thinking say.
Jerome Powell may still be the clear favorite to get renominated as Federal Reserve Chairman, but some investors are considering the long-shot alternative should there be a surprise change. Powell's odds in betting markets have fallen following sharp criticism of his performance by progressive Democrats and a trading scandal among Federal Reserve officials.
* Fed unlikely to raise rates sooner than signalled- analyst. * Silver on track for best week in seven. By Eileen Soreng. Gold was set on Friday for its best week in nearly five months, with a weaker U.S. dollar lifting its appeal despite a looming Federal Reserve stimulus taper. Spot gold eased 0.2% to $1,792.54 per ounce by 0609 GMT, but was up 2% for the week so far.
By Jamie McGeever. The U.S. and UK bond markets are sounding the economic alarm bell. Yield curves in both markets are flattening dramatically, indicating that traders are pricing in a growing risk of a central bank policy error or an increasingly gloomy outlook for long-term growth. Or both.
Any digital currency the Bank of Japan issues should have a simple design that private firms can use to develop financial and payment services for customers, a senior central bank official said on Friday. If central banks were to decide on issuing digital currencies, they need to co-exist with private-sector payment services, BOJ executive director Shinichi Uchida said.
Indonesia's central bank will hold interest rates steady next week to bolster the economy as activity stalled by the recent devastating COVID-19 wave gradually gathers pace, according to a Reuters poll of economists.
- Some big U.S. banks are buying more U.S. government securities as yields start to rise and the Federal Reserve appears ready to taper its bond-buying program - a balance sheet shift that analysts say could boost bank earnings by several percentage points depending on how they play their hands.
Global supply chain bottlenecks are not easing as quickly as expected, meaning inflation in Canada and among IMF members will probably take a little longer to come down, the governor of the Bank of Canada said on Thursday.
- Some big U.S. banks are buying more U.S. government securities as yields start to rise and the Federal Reserve appears ready to taper its bond-buying program - a balance sheet shift that analysts say could boost bank earnings by several percentage points depending on how they play their hands.
Some big U.S. banks are buying more U.S. government securities as yields start to rise and the Federal Reserve appears ready to taper its bond-buying program - a balance sheet shift that analysts say could boost bank earnings by several percentage points depending on how they play their hands.
It will soon be time to start reducing the Federal Reserve's asset purchases from the current pace of $120 billion a month, but the central bank is not likely to raise interest rates for at least another year, Philadelphia Federal Reserve Bank President Patrick Harker said on Thursday.
Brazil's real was supported by central
bank intervention and upbeat economic data on Thursday, while
Peru's sol jumped more than 1% in a winning streak spurred by a
more moderate shift in ...
Argentina's inflation rate spiked back up to a higher-than-expected 3.5% in September after months of declines, heaping pressure on the Peronist government as it looks to keep prices down ahead of key midterm elections in November. The monthly rise of the South American country's consumer price index was above a median analyst forecast of 2.9% and well above 2.5% a month earlier.
U.S. Treasury yields fell on Thursday after data on the labor
market and inflation eased worries the Federal Reserve may need to take action earlier than
expected to combat rising prices, with ...
-The U.S. Federal Reserve's regional bank presidents responded to criticism of their ethics rules by Democratic Senator Elizabeth Warren with a joint letter welcoming a review of the matter by the Fed's Board of Governors and pledging to make any changes that result from that process.
The popularity of a Federal Reserve facility that allows financial firms to park cash with the central bank overnight is not concerning and usage should decline as rates on other investments start to rise, a senior New York Fed official said on Thursday.
- Richmond Federal Reserve President Tom Barkin on Thursday said the U.S. central bank has cleared a path for what he hopes to be a "seamless" start to a reduction in its support for the economy, but that it will take more time to determine when interest rate hikes will be appropriate.
- The domestic standing repo facility established by the Federal Reserve this year could be open to banks by early next year, a top New York Federal Reserve official said on Thursday.
The domestic standing repo facility established by the Federal Reserve this year could be open to banks by early next year, a top New York Federal Reserve official said on Thursday.
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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