Asian shares edged down and bonds nursed small losses on Tuesday as investors braced for an eventful week that will include central bank meetings, a slew of earnings reports and key U.S. economic data. Investors broadly expect the U.S. Federal Reserve to raise interest rates by 25 basis points on Wednesday.
International Monetary Fund economists said on Tuesday that Singapore and other Southeast Asian economies are seeing downgrades to their 2023 growth outlooks because slowing global growth will outweigh the positive impact from China's economic reopening.
The Indian rupee eased on Tuesday against a stronger dollar, with investors keeping a close eye on equity markets while they awaited the domestic Union budget and the U.S. Federal Reserve meeting. The rupee fell to 81.67 per dollar by 10:15 a.m. IST, compared to its previous close of 81.4950. The currency is headed for a monthly gain of about 1.3%, relatively less than its peers.
* Positive China data buoys sentiment. * OPEC+ seen sticking with oil output policy at Feb. 1 meeting. * Investors watch for central bank rate hikes. By Laila Kearney and Trixie Sher Li Yap. Oil prices extended losses on Tuesday as the threat of further interest rate increases and continued Russian crude flows cancelled out demand recovery expectations from China.
* Gold set for gain of over 5% in January. * Silver, platinum, palladium set for monthly fall. * Fed policy meeting on Jan. 31 - Feb. 1. By Ashitha Shivaprasad. Gold prices edged up on Tuesday, en route to their third straight month of gains, as the dollar weakened, while market participants awaited the U.S. Federal Reserve policy decision later this week amid hopes of a less-aggressive rate hike.
U.S. wheat, soybean and corn futures were little changed in early Asian trading on Tuesday as caution prevailed across markets ahead of a slew of central bank policy meetings this week, including the U.S. Federal Reserve. FUNDAMENTALS. * The most-active soybean contract on the Chicago Board of Trade was virtually flat at $15.35 a bushel, as of 0237 GMT.
Indian shares are set to open higher on Tuesday, the final day of Adani Enterprises' mega secondary share sale and a day ahead of the Union budget, with investors also keeping an eye out for interest rate decisions by global central banks later this week. India's NSE stock futures listed on the Singapore exchange were up 0.47% at 17,789 as of 08:11 a.m. IST.
- Asian shares edged down and bonds nursed small losses on Tuesday as investors braced for an eventful week that will include central bank meetings, a slew of earnings reports and key U.S. economic data. Investors broadly expect the U.S. Federal Reserve to raise interest rates by 25 basis points on Wednesday.
China's economic activity swung back to growth in January, after a wave of COVID-19 infections passed through the country faster than expected following abandonment of pandemic controls.
Asian shares traded cautiously and bonds nursed small losses on Tuesday as investors braced for an eventful week that includes central bank meetings, a slew of earnings reports and key U.S. economic data. Investors broadly expect the U.S. Federal Reserve will raise interest rates by 25 basis points on Wednesday.
China's economic activity swung back to growth in January, official data showed on Tuesday, after a wave of COVID-19 infection passed through the country faster than expected following abandonment of pandemic controls. The official purchasing managers' index, which measures manufacturing activity, rose to 50.1 from 47.0 in December, the National Bureau of Statistics said on Tuesday.
* OPEC+ seen sticking with oil output policy at Feb. 1 meeting. * Russian oil supply appears to remain strong. * Investors watch for central bank rate hikes. By Laila Kearney. Oil prices steadied in early Asian trade on Tuesday after falling by more than 2% in the previous session on the threat of further interest rate hikes and continued Russian crude flows.
The International Monetary Fund on Tuesday raised its 2023 global growth outlook slightly due to "surprisingly resilient" demand in the United States and Europe, an easing of energy costs and the reopening of China's economy after Beijing abandoned its strict COVID-19 restrictions.
China's non-manufacturing activity broke into expansion territory for the first time since September 2022, official data showed on Tuesday, as consumption and travel recovered over the Lunar New Year holiday after the lifting of pandemic curbs.
Profits at China's industrial firms fell 4.0% in 2022 from a year earlier, according to data from the National Bureau of Statistics on Tuesday. The NBS did not release figures for December alone. China's economic growth in 2022 slowed to one of its weakest rates in nearly half a century as the economy was hit hard by strict COVID-19 curbs and a property market slump.
The dollar was eyeing a fourth monthly loss on Tuesday as investors reckon a peak in U.S. interest rates could swing into view as soon as this week's Federal Reserve meeting.
China's factory activity rebounded in January, expanding for the first time since September 2022, official data showed on Tuesday, as the "exit wave" from zero-COVID passed through the population and production lines faster than expected. The official manufacturing purchasing managers' index stood at 50.1, compared with a reading of 47.0 in December, the National Bureau of Statistics said.
The International Monetary Fund on Tuesday raised its 2023 global growth outlook slightly due to "surprisingly resilient" demand in the United States and Europe, an easing of energy costs and the reopening of China's economy after Beijing abandoned its strict COVID-19 restrictions.
The dollar was eyeing a
fourth monthly loss on Tuesday as investors reckon a peak in
U.S. interest rates could swing into view as soon as this week's
Federal Reserve meeting.
Gold prices were flat on Tuesday, as market participants held back from making large bets ahead of the U.S. Federal Reserve policy decision. FUNDAMENTALS. * Spot gold held its ground at $1,922.26 per ounce, as of 0032 GMT. * Traders mostly expect the U.S. central bank to scale back rate hikes to 25 basis points at its two-day policy meeting that ends on Wednesday.
South Korea's Samsung Electronics Co Ltd (SSNLF) on Tuesday indicated it has no plan to cut investment in chips this year, even as a weak global economy condemns the industry to its worst downturn in over a decade.
Japanese factories cut output slightly in December, capping the worst quarter for manufacturers since the onset of the COVID-19 pandemic, hit by stalling global demand and rising costs.
* Dec output -0.1% m/m vs forecast -1.2% * Oct-Dec output -3.1% q/q, biggest fall since 2020Q2. * Manufacturers see Jan output flat, Feb +4.1% * Dec retail sales +3.8% y/y vs f'cast +3.0% * Jobless rate, jobs/applicants ratio flat in Dec. By Kantaro Komiya.
Japan's factory output fell 0.1% in December from the previous month, government data showed on Tuesday, versus the median market forecast for a 1.2% drop. Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect output to be flat in January and rise 4.1% in February, the data also showed.
A look at the day ahead in markets from Stephen Culp, New York stock market reporter. U.S. stocks appeared to take a breather near the end of a month of solid gains, dipping into red as market participants gird their loins for multiple central bank policy decisions and a spate of high profile megacap earnings, with the Labor Department's hotly anticipated January employment report due on Friday.
* * Megacap stocks lead earnings results this week. * MSCI index on track for biggest January pct gain since 2019. By Chuck Mikolajczak. A gauge of global stocks retreated on Monday after six sessions of gains while U.S. Treasury yields rose ahead of central bank policy announcements and data that may shed light on whether progress has been made in bringing down inflation.
The dollar rose on Monday,
a day before the Federal Reserve was due to begin a two-day
policy meeting, while the euro was boosted by unexpectedly high
inflation data before the European Central Bank ...
* Canadian dollar weakens 0.5% against the greenback. * Touches its strongest since Nov. 16 at 1.3297. * Price of U.S. oil settles 2.2% lower. * 10-year yield touches a near three-week high. By Fergal Smith.
* * Megacap stocks lead earnings results this week. * MSCI index on track for biggest January pct gain since 2019. By Chuck Mikolajczak. A gauge of global stocks retreated on Monday after six sessions of gains while U.S. Treasury yields rose ahead of central bank policy announcements and data that may shed light on whether progress has been made in bringing down inflation.
Mexico's economy likely grew between 2.9% and 3% in 2022, the country's Deputy Finance Minister Gabriel Yorio said in a press conference on Monday, marking a slowdown from the 5% advance recorded in 2021. The government official added the country's economy grew 2.9% through November 2022. Private sector analysts set their 2022 growth estimate for Mexico at 3% in a. survey published. in December.
Mexico's public debt stood at 49.4% of the country's gross domestic product at the end of last year's fourth quarter, the finance ministry said in a statement Monday. Latin America's second-biggest economy expanded 2.9% through November, the statement added.
Brazil's Finance Minister Fernando Haddad said on Monday that the new central bank monetary policy director could be tapped from the private sector, a closely followed position that should signal the president's relationship with policymakers.
* Apple (AAPL), Meta, Alphabet, Amazon.com (AMZN) slide ahead of earnings. * Fed decision on interest rates on Wednesday. * Indexes: Nasdaq down 1.15%, S&P falls 0.51%, Dow flat. By Shreyashi Sanyal and Johann M Cherian.
* Federal Reserve policy meeting on Jan. 31 - Feb. 1. * Benchmark U.S. 10-year yields at two-week high. By Seher Dareen. Gold prices edged up slightly in choppy trade on Monday as investors looked ahead to the U.S. Federal Reserve policy meeting this week amid expectations of a slowdown in rate hikes. Spot gold was up 0.1% to $1,928.39 per ounce by 10:28 a.m. ET.
Canada's main stock index was subdued on Monday, with energy and technology stocks among the top decliners, at the start of a week packed with interest rate decisions from central banks around the world. At 10:24 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down 15.67 points, or 0.08%, at 20,698.81, paring losses after falling more than 0.5% at the open.
The dollar was little
changed on Monday, a day before the Federal Reserve was due to
begin a two-day policy meeting, while the euro was boosted by
unexpectedly high inflation data before the European ...
Wall Street's main indexes opened lower on Monday, with the tech-focused Nasdaq dropping nearly 1%, to kick-start the busiest week of the earnings season and ahead of key central bank meetings. The Nasdaq Composite dropped 109.37 points, or 0.94%, to 11,512.34 at the opening bell.
* Megacap growth stocks lead declines. * Fed decision on interest rates on Wednesday. * Futures down: Nasdaq 1.13%, S&P 0.80%, Dow 0.46% By Shreyashi Sanyal and Johann M Cherian. Jan 30 - Wall Street was set to open lower on Monday, with the tech-focused Nasdaq futures dropping more than 1%, at the start of the busiest week of the earnings season and ahead of key central bank meetings.
Major U.S. stock indexes sank on Monday, weighed down by declines in technology and other megacap shares, as investors looked toward a major week of events including central bank meetings and a slew of earnings reports. The heavyweight tech sector was among the biggest S&P 500 sector decliners on the day.
Kenya's central bank held its benchmark lending rate steady at 8.75% on Monday, its monetary policy committee said, saying its last hike in November was still working its way through the economy. Six out of nine market participants polled by Reuters had predicted the bank would hold the rate steady, while three expected it would be raised.
CGI Inc (GIB): * CGI Inc (GIB) - FIVE-YEAR CONTRACT EXTENSION WITH LAURENTIAN BANK OF CANADA. * CGI Inc (GIB) - CGI TO EXPAND DELIVERY OF BANKING TRANSFORMATION SERVICES OVER NEXT FIVE YEARS Source text for Eikon: Further company coverage:
Brazil's government debt as a share of gross domestic product ended 2022 at its lowest level in more than five years, central bank data showed on Monday, in a significant but not sustainable fiscal improvement as the debt dynamics should resume an upward trend this year.
Brazil's government debt as a share of gross domestic product fell to 73.5% in December from 74.6% in November and 78.3% a year earlier, central bank data showed on Monday. The country's public sector recorded a primary deficit of 11.813 billion reais in December, and a 125.994 billion reais surplus for 2022, its second straight positive annual print.
Stock markets worldwide halted their January rally on Monday, pausing for breath at the start of an agenda-setting week of central bank rate hikes and data releases that will clarify if progress has been made in the battle against inflation.
* * Technology giants lead host of earnings results. * Shares edge down after robust January rally. By Lawrence White. Stock markets worldwide halted their January rally on Monday, pausing for breath at the start of an agenda-setting week of central bank rate hikes and data releases that will clarify if progress has been made in the battle against inflation.
The euro rose on Monday after unexpectedly high Spanish inflation data raised expectations for a higher euro area print on Wednesday, while the dollar languished near an eight-month low ahead of a slew of central bank meetings this week.
Sterling edged lower against the U.S. dollar on Monday ahead of a number of central bank meetings this week including the Bank of England's, which is expected to hike rates for the 10th consecutive time. The BoE looks on course for its first rate rise this year, with markets pricing in a half percentage point increase to 4% on Thursday.
Chile's unemployment rate hit 7.9% in the October-December period, government statistics agency INE said on Monday, matching economists' forecasts in a Reuters poll and unchanged from the quarter through November.
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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