* Middle East tensions dampen sentiment; dollar firms on safe-haven demand. * SNB cuts interest rates to zero. * Norges Bank delivers surprise 25 bps cut. * Bank of England expected to hold rates steady. * Powell warns on inflation risks from tariffs. By Ankur Banerjee and Lucy Raitano.
* Turkey central bank expected to hold rates steady. * Indonesia's central bank intervenes in FX market. * EM assets hit by risk-off mood as Iran-Israel conflict rages on. By Medha Singh. Emerging market stocks and currencies hit a two-week low on Thursday against a stronger dollar as the escalating Israel-Iran conflict drove investors toward safe-haven assets.
Syria has carried out its first international bank transaction via the SWIFT system since the outbreak of its 14-year civil war, its central bank governor said on Thursday, a milestone in Syria's push to reintegrate into the global financial system.
SNB Chairman: hurdle to further cut interest rates is much higher when we are at zero SNB Chairman: typically forex interventions are in the most liquid markets, in dollar and euro.
* * Retail sales growth in May driven by early 618 start. * Subsidy suspension may impact June retail sales, analysts say. By Sophie Yu and Casey Hall. China's largest mid-year shopping festival, 618, ended on Wednesday with record sales, though daily spending dropped amid an extended sales period aimed at enticing consumers to part with more of their hard-earned money.
Syria this week carried out its first international bank transfer via the SWIFT international payment system since the outbreak of the country's 14-year civil war, central bank governor Abdelkader Husriyeh said on Thursday, a milestone in Syria's push to reintegrate into the global financial system.
* * Israel attacks Iranian nuclear sites. * Iranian missile damages Israeli hospital. * Platinum at over 10-year high. By Anushree Mukherjee. June 19 - Gold prices edged down on Thursday, after the U.S. Federal Reserve signalled a hawkish interest rate outlook, while platinum scaled its highest level since September 2014 on speculative buying.
Norway's central bank cut its policy interest rate by 25 basis points to 4.25% on Thursday and said there were more cuts to come due to a more benign inflation outlook, a decision that took most analysts by surprise and weakened the currency.
* Norway trims rate to 4.25% in first cut since 2020. * Central bank plans to cut again this year. * Says inflation has come down faster than expected. * Most analysts had predicted rates would stay on hold. * Currency weakens against the euro, then recovers. By Terje Solsvik.
Norway's central bank cut its policy interest rate by 25 basis points to 4.25% on Thursday, its first reduction of borrowing costs in five years, in a decision that took most analysts by surprise.
The Swiss National Bank is aware of the "undesirable side effects" of negative interest rates, Chairman Martin Schlegel said on Thursday, although the measure had been an important instrument when deployed in the past.
The outlook for the global economy in the coming quarters has deteriorated due to higher trade tensions, Swiss National Bank governing board member Petra Tschudin said on Thursday, "In our baseline scenario, we anticipate that growth in the global economy will weaken over the coming quarters," Tschudin said in a speech after the SNB's latest interest rate decision.
China is widely expected to keep its benchmark lending rates unchanged at a monthly fixing on Friday, a Reuters survey showed, after Beijing rolled out sweeping monetary easing measures a month earlier to aid the economy.
* SNB cuts rates with inflation negative and franc strong. * SNB anticipates weaker global growth, rising US inflation. * Analysts suggest SNB may pause rate cuts unless economy worsens. By John Revill.
China is widely expected to keep its benchmark lending rates unchanged at a monthly fixing on Friday, a Reuters survey showed, after Beijing rolled out sweeping monetary easing measures a month earlier to aid the economy.
Syria expects to have its first transaction with a U.S. bank "in a matter of weeks", Syrian central bank governor Abdelkader Husriyeh said on Thursday, a day after a high-level meeting between Syrian and U.S. commercial banks.
The Swiss National Bank cut its interest rate to zero on Thursday in response to falling inflation, appreciation pressure on the Swiss franc and economic uncertainty caused by the U.S. administration's unpredictable trade policy. The SNB reduced its policy rate by 25 basis points from 0.25%, as expected by markets and a Reuters poll.
Euro zone yields were slightly higher on Thursday after the U.S. Federal Reserve held rates steady the day before, with investors still nervously watching developments in the Middle East. The U.S. central bank kept interest rates unchanged as widely expected on Wednesday, with Chair Jerome Powell saying he expected to see more tariff-driven price hikes in coming months.
Sterling slipped versus a stronger dollar on Thursday ahead of the Bank of England's policy decision, with no change to rates the widely expected outcome, while investor sentiment remained fragile given the flaring conflict in the Middle East. At 0618 GMT the pound was 0.24% lower at $1.339 and unchanged against the euro, which held at 85.515 pence.
A look at the day ahead in European and global markets from Johann M Cherian. Speculation over potential U.S. intervention in the Middle East has grabbed the market's attention this week, rattling investors who were otherwise focused on a series of central bank meetings that are expected to give outlooks on growth and inflation.
A look at the day ahead in European and global markets from Johann M Cherian. Speculation over potential U.S. intervention in the Middle East has grabbed the market's attention this week, rattling investors who were otherwise focused on a series of central bank meetings that are expected to give outlooks on growth and inflation.
India's equity benchmarks were subdued on Thursday, as hawkish signals from the U.S. Federal Reserve and persistent geopolitical turmoil in the Middle East kept investors at bay. The Nifty 50 held its ground at 24,816.85 and the BSE Sensex was flat at 81,442.52, as of 9:57 a.m. IST. The broader small-caps and mid-caps fell 0.2% and 0.4%, respectively.
* * Retail sales growth in May driven by early 618 start. * Subsidy suspension may impact June retail sales, analysts say. By Sophie Yu and Casey Hall. China's biggest mid-year shopping festival, 618, ended on Wednesday evening without much fanfare after more than a month of promotional events aimed at enticing consumers to part with more of their hard-earned money.
Indian government bond yields are likely to be little changed in opening deals on Thursday, as oil prices were steady, while the U.S. Federal Reserve policy decision did little to affect sentiment.
The Bank of Japan is likely to hold off raising interest rates this year unless a dramatic, positive turn of events in U.S. tariffs allows it to overhaul gloomy projections made in May, its former top economist Seisaku Kameda said.
* BOJ's dovish May outlook report raised hurdle for rate hike. * Big turn of events in US trade talks needed to shift narrative. * Capex, next year's wage outlook key to rate-hike timing. * BOJ likely to hold fire until January or March next year. By Leika Kihara.
Australian employment dipped in May after solid gains the previous month, data showed on Thursday, though full-time jobs jumped and the jobless rate held steady in a sign of continued resilience in the labour market. Figures from the Australian Bureau of Statistics showed net employment dipped 2,500 in May from April, when they rose a revised 87,600.
The dollar held mostly steady on Thursday as the threat of a broader Middle East conflict loomed over markets, while a flurry of central bank decisions including a surprise cut from Norway kept traders busy. Rapidly rising geopolitical tensions have boosted the dollar, which has reclaimed its safe-haven status in recent days.
* Currencies muted after Fed, Powell comments. * Middle East tensions dampen sentiment. * Central Bank bonanza continues with BoE, SNB and Norges Bank meeting. By Ankur Banerjee.
A cautious Federal Reserve has put a damper on hopes for interest rate cuts, leaving investors on edge as they navigate a murky mix of geopolitical tensions, inflation risks, and looming growth drag from U.S. President Donald Trump's tariffs. The Fed on Wednesday kept the benchmark interest rate unchanged, as expected.
The Bank of Japan is taking a more cautious approach to reducing its balance sheet, meaning Japanese capital invested overseas is less likely to be coming home anytime soon.
Ireland's domestic economic growth is expected to slow to around 2% this year and next if the United States hits European Union exports with a 20% tariff, and could fall much more steeply if a deeper trade war follows, Ireland's central bank said.
* BoE to announce June rate decision at 1100 GMT. * Economists predict 7-2 vote to keep rates at 4.25% * BoE Governor Bailey has said rate cuts will be 'gradual' * Data shows slowing economy, inflation, wages. * Escalating Middle East conflict poses fresh challenge. By Suban Abdulla.
-Federal Reserve Chair Jerome Powell made a plea on Wednesday for the government not to cut back too aggressively on its efforts to collect data on the economy because the information it collects strongly benefits the entire nation. "The data we get right now, we can do our jobs.
* Equity indexes flatten after volatile session. * Fed signals slower easing, predicts more inflation. * Oil rises on sixth day of Israel-Iran tension. * Trump says "anything could happen" * US Treasury yields fall, then rise. By Isla Binnie.
Brazil's central bank raised interest rates by 25 basis points on Wednesday, delivering a seventh consecutive hike that defied bets it would hold rates steady, as unanchored inflation expectations and a resilient economy kept policymakers on alert. The bank's rate-setting committee, Copom, unanimously decided to lift the benchmark Selic rate to 15%, the highest since July 2006.
The U.S. dollar traded higher
against most major currencies on Wednesday, but remained weaker
against the yen after the Federal Reserve kept interest rates
unchanged as economic uncertainty and ...
Latin American assets slipped on Wednesday as traders
awaited an interest rate decision from Brazil's central bank
against the backdrop of escalating
Middle East turmoil
.
Futures on the federal funds rate, which measure the cost of unsecured overnight loans between banks, raised the odds the Federal Reserve would resume cutting interest rates at the September meeting, with a roughly 64% probability.
Futures on the federal funds rate, which measure the cost of unsecured overnight loans between banks, raised the odds the Federal Reserve would resume cutting interest rates at the September meeting, with a roughly 64% probability.
Federal Reserve Chairman Jerome Powell said on Wednesday that amid signs of cutback in data collection, the central bank is still able to do what it needs to do. "The data we get right now, we can do our jobs.
Federal Reserve Chairman Jerome Powell said on Wednesday that monetary policy still needs to impose some restraint on the economy given where inflation stands. The current level of interest rates--the Fed's target range rests between 4.25% and 4.5%--is "not very high," Powell said.
-Federal Reserve Chairman Jerome Powell cautioned on Wednesday not to place too much stock in the central bank's interest rate forecasts, which could change based on incoming data, especially on the inflation front.
Federal Reserve Chairman Jerome Powell cautioned on Wednesday not to place too much stock in the central bank's interest rate forecasts, which could change based on incoming data, especially on the inflation front.
Federal Reserve Chair Jerome Powell said on Wednesday goods price inflation will pick up over the course of the summer as President Donald Trump's tariffs work their way to U.S. consumers, who he argued would bear some of those costs.
Federal Reserve Chair Jerome Powell said on Wednesday that Fed policy makers expect inflation in goods prices to go up over the course of the summer as the impact of President Donald Trump's tariffs work their way to U.S. consumers. "We've had goods inflation just moving up a bit," Powell told a news conference after the Fed held rates unchanged.
The Federal Reserve held interest rates steady on Wednesday and policymakers indicated borrowing costs are still likely to fall this year, but slowed the overall pace of expected future rate cuts in the face of estimated higher inflation stemming from the Trump administration's tariff plans.
Futures on the federal funds rate, which measure the cost of unsecured overnight loans between banks, raised the odds the Federal Reserve will resume cutting interest rates at the September meeting, with a 66% probability. That was 58% before the Fed's decision on Wednesday to keep rates unchanged.
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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