- U.S. economic activity increased slightly to moderately in late November and December, the Federal Reserve said on Wednesday, with employment ticking up and prices rising moderately amid concerns about the potential impact of policies under President-elect Donald Trump.
U.S. economic activity increased slightly to moderately in late November and December, the Federal Reserve said on Wednesday, with employment ticking up and prices rising moderately amid concerns about the potential impact of policies under President-elect Donald Trump.
-Several major brokerages have tempered their predictions for how much the Federal Reserve will lower interest rates in 2025, if at all, after a surprisingly strong U.S. employment report on Friday pointed to resilient economic growth. At least one brokerage, BofA Global Research, said in a note it thought the easing cycle was over and it was likely the Fed would hold for an extended period.
- U.S. central bankers project more limited interest-rate cuts in 2025 than the full percentage point of reductions they delivered in 2024, given slower progress toward their 2% inflation goal, a still-strong labor market, and a lot of uncertainty over the potential impact of tax cuts, tariffs and other economic policies in Donald Trump's second term as president.
The Bank of England should move quickly to bring down interest rates given signs of a slowdown in Britain's economy, Alan Taylor, the BoE's most recently appointed interest rate setter, said on Wednesday.
Global hedge funds added more bets against U.S. stocks over the last week through Jan 9, ahead of a blowout U.S. jobs report that sparked a sell-off on Wall Street, Morgan Stanley and Goldman Sachs said in notes on Friday.
* US core inflation rises 0.2%, as expected. * US 10-year yield on pace for largest daily fall in two months. * US 2/10 yield curve flattens after inflation data. * US rate futures price in 38 bps of easing in 2025. By Gertrude Chavez-Dreyfuss.
Federal Reserve Bank of New York President John Williams said Wednesday it's too soon to say how the election outcome and the return of Donald Trump as president will affect the economy.
Canada's main stock index rose on Wednesday as investors welcomed a U.S. inflation print that lifted hopes for more rate cuts this year by the Federal Reserve. The Toronto Stock Exchange's S&P/TSX composite index was up 0.76%, or 186.04 points, at 24774.62. Eleven of thirteen sectors were trading higher, with information technology stocks leading with a 1.9% rise.
* US stocks rise after core inflation up less than forecast. * U.S. Treasury yields fall with dollar. * Oil and gold rally. By Sin?ad Carew and Amanda Cooper. A global equities gauge rallied on Wednesday while the dollar fell with Treasury yields after data showed core U.S. inflation rose less than expected in December, raising hopes that the Federal Reserve could ease rates further.
The dollar weakened
against major peers on Wednesday after cooler-than-expected data
eased fears that inflation was accelerating and increased the
chances the Federal Reserve could cut interest rates ...
Federal Reserve Bank of New York President John Williams said on Wednesday that future monetary policy actions will be driven by economic data as the central bank confronts a high level of uncertainty in large part driven by potential government policy changes.
* Consumer price index increases 0.4% in December. * Energy goods account for more than 40% of the rise in CPI. * Consumer inflation rises 2.9% on year-on-year basis. * Core CPI gains 0.2%; up 3.2% from year ago. By Lucia Mutikani.
Federal Reserve officials said data released on Wednesday showed U.S. inflation was continuing to ease even as they noted heightened uncertainty in the coming months as they await a first glimpse of the incoming Trump administration's policies.
* US 10-year yield on pace for largest daily fall in two months. * US 2/10 yield curve flattens after inflation data. * US rate futures price in 40 bps of easing in 2025. By Gertrude Chavez-Dreyfuss.
* US core CPI rises 3.2% on a yearly basis in December. * Dollar down 0.3% against its rivals. * Markets expect 37.2 bps worth of rate cuts by year-end. By Anjana Anil. Gold prices pared gains on Wednesday after a U.S. consumer inflation report offered mixed signals about the future path of rate cuts this year, even as a drop in the U.S. dollar and Treasury yields limited bullion's losses.
Canada's main stock index opened higher on Wednesday, helped by information technology shares, as investors welcomed a U.S. inflation print that lifted hopes for more rate cuts this year by the Federal Reserve. At 9:31 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 1%, or 258.9 points, at 24847.48.
Federal Reserve policymakers may be able to reduce interest rates a couple of times this year, traders bet on Wednesday, after a government report helped allay fears that inflation was accelerating in the final full month of Joe Biden's presidency.
Former Bank of Canada governor Mark Carney will announce on Thursday he is running to replace Prime Minister Justin Trudeau as leader of the ruling Liberal Party, CBC News said on Wednesday. Carney, 59, will launch his bid at an event in the western city of Edmonton, CBC said, citing an invitation sent by Liberal legislator George Chahal.
Euro area benchmark Bund yields fell on Wednesday, breaking a 10-day rising streak, as core U.S. consumer price inflation came in below expectations in December, bringing back bets on two Federal Reserve rate cuts in 2025.
U.S. consumer prices increased slightly more than expected in November as energy costs rose, pointing to an inflation trend that lines up with the Federal Reserve's view for a slower path of rate cuts this year. The consumer price index rose 0.4% last month after climbing 0.3% in November, the Labor Department's Bureau of Labor Statistics said on Wednesday.
- Traders of interest-rate futures on Wednesday were pricing close to even odds the Federal Reserve will cut interest rates twice by the end of this year, with the first reduction to come in June. Government data showed consumer prices rose 2.9% in the 12 months through December, in line with economists' expectations.
Traders of interest-rate futures on Wednesday were pricing close to even odds the Federal Reserve will cut interest rates twice by the end of this year, with the first reduction to come in June. Government data showed consumer prices rose 2.9% in the 12 months through December, in line with economists' expectations.
U.S. stock index futures extended gains on Wednesday as investors assessed a broadly in-line consumer inflation report to gauge its effect on the Federal Reserve's monetary policy easing this year. Data from the Labor Department showed the consumer price index rose 2.9% on an annual basis in December 2024, in line with the expectations of economists polled by Reuters.
U.S. consumer prices increased slightly more than expected in December amid higher costs for energy goods, pointing to still elevated inflation that aligns with the Federal Reserve's projections for fewer interest rate cuts this year. The consumer price index rose 0.4% last month after climbing 0.3% in November, the Labor Department's Bureau of Labor Statistics said on Wednesday.
* Yen appreciates on rising prospect of BOJ hike. * British inflation unexpectedly slows. * Sterling steady even as gilts rally. * Dollar recovers from Tuesday's fall. * China's yuan again very close to daily downside limit. By Rae Wee and Alun John.
* December CPI data due at 8:30 a.m. ET. * JPMorgan (JPM), Wells Fargo (WFC) post higher Q4 profits. * BlackRock (BLK) assets hit record $11.6 trillion in Q4 2024. * Futures up: Dow 0.37%, S&P 500 0.33%, Nasdaq 0.39% By Johann M Cherian and Sukriti Gupta.
The interest rate for the most popular U.S. home loan rose last week to an eight-month high of 7.09%, extending an upward trend that's squeezing would-be homebuyers already facing rising house prices and limited supply. The average contract rate on a 30-year fixed-rate mortgage rose 10 basis points in the week ended Jan. 10, the Mortgage Bankers Association said on Wednesday.
Any moves to pursue financial deregulation by the incoming U.S. administration would increase the risk of a financial crisis occurring one day, France's central bank governor warned on Wednesday.
Any moves to pursue financial deregulation by the incoming U.S. administration would increase the risk of a financial crisis occurring one day, France's central bank governor warned on Wednesday.
* German GDP contracts 0.2% in 2024, exports fall 0.8% * First back-to-back annual contraction since early 2000s. * Fall in full-year GDP in line with forecast. * Fourth quarter's 0.1% fall suggests no upturn imminent. By Maria Martinez. BERLIN, Jan 15 - Germany's economy contracted for the second consecutive year in 2024, highlighting the depth of the downturn gripping Europe's biggest economy.
* S&P 500 futures flat, oil up. * Dollar, bond yields tick lower ahead of CPI. * Pound holds, gilts soothed by UK inflation. * Sterling, gilts in focus ahead of UK CPI data. By Amanda Cooper.
Armed conflict is the top risk in 2025, a World Economic Forum survey released on Wednesday showed, a reminder of the deepening global fragmentation as government and business leaders attend an annual gathering in Davos next week.
* Yen gains on rising prospect of BOJ hike. * British inflation unexpectedly slows. * sterling steady even as gilts rally. * Dollar recovers from Tuesday's fall. * By Rae Wee and Alun John.
* US CPI data due at 1330 GMT. * Dollar down 0.1% against its rivals. * Donald Trump to begin his second term next week. By Anushree Mukherjee. Gold prices firmed on Wednesday as the U.S. dollar and Treasury yields retreated, while markets participants awaited U.S. inflation data for clues on Federal Reserve's interest rate strategy. Spot gold gained 0.2% to $2,683.62 per ounce by 0903 GMT.
The German economy contracted by 0.1% in the final quarter of last year and shrank by 0.2% over the full-year 2024, the Federal Statistics Office said on Wednesday. The full-year decrease in gross domestic product compared with a forecast by analysts polled by Reuters for a 0.2% drop in 2024.
Euro area benchmark Bund yields edged lower on Wednesday, breaking a 10-day rising streak, as investors awaited U.S. consumer price inflation figures later in the session. Strong economic data and fears that U.S. President-elect Donald Trump's policies could boost inflation have driven yields up on both sides of the Atlantic since early December.
Japanese government bond yields hit multi-year highs on Wednesday, after Bank of Japan Governor Kazuo Ueda's comments drove expectations for a rate hike this month. The two-year JGB yield, which is more sensitive to interest rate expectations, rose 2 basis points to 0.7%, its highest since October 2008. The 10-year yield rose 1.5 bps to 1.255%, its highest level since April 2011.
* Yen gains on rising prospect of BOJ hike. * Dollar recovers from Tuesday's fall. * Focus on US, UK consumer inflation readings. By Rae Wee. The dollar's towering rally hit a speed bump on Wednesday as traders turned cautious ahead of a closely watched U.S. consumer inflation report due later in the day, while the yen pulled ahead following remarks from Japan's central bank chief.
A look at the day ahead in European and global markets from Stella Qiu. Bond investors may have drawn some comfort from the benign miss in U.S. producer price data but a duo of CPI reports from Britain and the U.S. is set to decide whether the relentless selling in the global bond market resumes.
A look at the day ahead in European and global markets from Stella Qiu. Bond investors may have drawn some comfort from the benign miss in U.S. producer price data but a duo of CPI reports from Britain and the U.S. is set to decide whether the relentless selling in the global bond market resumes.
The Bank of Japan will debate whether to raise interest rates next week, Governor Kazuo Ueda said on Wednesday, signalling its intention to take borrowing costs higher barring a Trump-driven market shock.
* US CPI data due at 1330 GMT. * Spot gold may fall towards $2,635 - technicals. * Donald Trump to begin his second term next week. By Rahul Paswan. Gold prices edged higher on Wednesday as investors waited for the U.S. consumer price inflation report that could provide more clarity on the Federal Reserve's interest rate trajectory. Spot gold rose 0.1% to $2,681.34 per ounce by 0701 GMT.
A global equities gauge rallied on Wednesday while the dollar fell with Treasury yields after data showed core U.S. inflation rose less than expected in December, raising hopes that the Federal Reserve could ease rates further. Investors also cheered the first wave of U.S. bank earnings reports.
A global equities gauge rallied on Wednesday while the dollar fell with Treasury yields after data showed core U.S. inflation rose less than expected in December, raising hopes that the Federal Reserve could ease rates further. Investors also cheered the first wave of U.S. bank earnings reports.
* Asia shares subdued, S&P 500 futures +0.1% * Dollar, short-term bond yields fall on PPI miss. * Much riding on U.S. CPI data. * Sterling, gilts in focus ahead of UK CPI data. By Stella Qiu and Caroline Valetkevitch.
The dollar weakened against major peers on Wednesday after cooler-than-expected data eased fears that inflation was accelerating and increased the chances the Federal Reserve could cut interest rates twice this year. The Bureau of Labor Statistics showed consumer prices rose 2.9% in the 12 months through December, in line with economists' expectations.
Gold prices were subdued on Wednesday as investors remained cautious ahead of the U.S. consumer price inflation data that could provide more clarity on the Federal Reserve's interest rate trajectory. FUNDAMENTALS. * Spot gold eased 0.1% to $2,672.93 per ounce as of 0047 GMT. * Investors now await the Consumer Price Index print due at 1330 GMT to gauge the Fed's policy path.
South Korea's jobless rate jumped to the highest in 3-1/2 years in December, as political turmoil stoked economic uncertainty and dampened sentiment, data showed on Wednesday, a day ahead of the central bank's first monetary policy meeting of the year.
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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