Most Latin American currencies ticked up against the dollar
on Monday as global markets awaited the U.S. Federal Reserve's
rate verdict later this week, with bets tilted toward an
outsized ...
The U.S. dollar
fell to a more than one-year low versus the yen on Monday, as
expectations increased that the Federal Reserve could deliver a
supersized cut to interest rates later this week.
Argentina's economy likely shrank 1.4% in the second quarter versus a year earlier, a Reuters poll showed on Monday, the fifth such decline as a recession deepens under a tough austerity drive by libertarian President Javier Milei. That median GDP estimate from 15 analysts polled by Reuters for the April-June period would follow a 5.1% year-over-year contraction in the first quarter.
The Federal Reserve will likely not cut U.S. interest rates as deeply as the bond market expects due to a resilient economy and inflation remaining sticky, the BlackRock Investment Institute said in a note on Monday.
The Federal Reserve will likely not cut U.S. interest rates as deeply as the bond market expects due to a resilient economy and inflation remaining sticky, the BlackRock Investment Institute said in a note on Monday.
* Federal Reserve's policy meeting due on Wednesday. * U.S. dollar down 0.4% against its rivals. * Gold to hit $2,900 by end of 2025, ANZ analysts say. By Anushree Ashish Mukherjee. Gold prices extended gains to an all-time high on Monday, supported by a weaker dollar and the prospect of a big rate reduction by the U.S. Federal Reserve at its policy meeting this week.
* Apple (AAPL) falls after analyst flags weak demand for new iPhones. * Intel (INTC) rises after report chipmaker qualifies for federal grants. * Boeing (BA) dips after it freezes hiring, weighs temporary furloughs. * Indexes: Dow up 0.16%, S&P 500 down 0.23%, Nasdaq down 0.83% By Johann M Cherian and Purvi Agarwal.
Forty of the world's leading commercial banks have joined a G7-led pilot scheme with the New York Fed and leading central banks from Europe, Korea and Japan for a new digital currency platform designed to speed up and enhance cross border payments.
The U.S. dollar
fell to a more than one-year low versus the yen on Monday, as
expectations increased that the Federal Reserve could deliver a
supersized cut to interest rates later this week.
Euro zone government bond yields slipped on Monday as money markets increased their bets on a super-sized 50 basis point rate cut by the Federal Reserve on Wednesday. The Bank of England and the Bank of Japan will also hold their policy meetings later this week and are expected to keep rates at the current levels.
Canada's main stock index edged up to an all-time high on Monday, driven by gains in healthcare shares, while investors bet on a heftier U.S. interest-rate cut later this week. The Toronto Stock Exchange's S&P/TSX composite index was up 54.98 points, or 0.23%, at 23,623.63. It had notched record-high closing levels in the past two sessions.
Futures on the fed funds rate, which measures the cost of unsecured overnight loans between banks, have priced in a nearly 60% chance of a 50 basis-point rate cut by the Federal Reserve on Wednesday, LSEG calculations showed. That was up from 45% last Friday and from 25% following the release of an in-line U.S. consumer price index report last week.
U.S. Treasury yields were flat on Monday after a Friday bond rally, as investors weigh the odds of a half-percentage point interest rate cut by the Federal Reserve this week.
The Thai government will nominate a ruling party loyalist and critic of the central bank governor for chair of the Bank of Thailand, seeking to assert influence on the institution amid a protracted rift over interest rates, according to two sources.
Most Latin American stocks and
currencies rose in early trading on Monday, as emerging market
assets rode the prospects of an outsized Federal Reserve
interest rate cut, while Israel's shekel ...
The U.S. dollar fell on Friday to its
lowest level in nearly nine months against the Japanese yen after media reports
once again fueled speculation the Federal Reserve could deliver a ...
By Gertrude Chavez-Dreyfuss and Chibuike Oguh. The U.S. dollar fell on Friday to its lowest level in nearly nine months against the Japanese yen after media reports once again fueled speculation the Federal Reserve could deliver a super-sized 50-basis-point interest rate cut at its policy meeting next week.
Canada's main stock index hit a record high on Monday, lifted by healthcare and energy stocks, as investors anticipated a bigger U.S. interest rate cut by the U.S. Federal Reserve later this week. At 9:31 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 88.59 points, or 0.38%, at 23,657.24.
- Foreign investors ploughed a net $30.9 billion into emerging market stocks and debt portfolios in August as markets continue to position for an imminent rate cut from the U.S. Federal Reserve, data from a banking trade group showed on Monday. Fixed income funds ex-China accounted for $27.8 billion of inflows, with $1.4 billion funneled to Chinese debt, the data show.
Foreign investors ploughed a net $30.9 billion into emerging market stocks and debt portfolios in August as markets continue to position for an imminent rate cut from the U.S. Federal Reserve, data from a banking trade group showed on Monday. Fixed income funds ex-China accounted for $27.8 billion of inflows, with $1.4 billion funneled to Chinese debt, the data show.
The dollar was lower on Monday while the yen hit its highest level in more than a year, as market participants increasingly expected an oversized rate cut by the Federal Reserve later this week. The dollar traded at 140.01 yen at 1140 GMT, after falling to as low as 139.58 yen in the session.
* Shares steady in Europe, Treasuries firm. * Futures imply 59% chance of outsized Fed rate cut. * China data disappoints, adding to case for stimulus. * Trump safe after FBI prevents second assassination attempt. By Amanda Cooper.
Indian government bond yields declined for the fourth consecutive session on Monday, as bets of a bigger rate cut from the U.S. Federal Reserve later this week further powered the bulls.
Futures tied to Canada's main stock index edged higher on Monday ahead of the U.S. Federal Reserve's monetary policy decision later in the week, with investors anticipating a steeper interest rate cut. Futures on the S&P/TSX index were up 0.1% at 6:01 a.m. ET.
The Bank for International Settlements has urged top central banks not to squander the interest rate buffers they have rebuilt over the last couple of years by now cutting them again too rapidly.
The Bank for International Settlements has urged top central banks not to squander the interest rate buffers they have rebuilt over the last couple of years by now cutting them again too rapidly.
The forint continued to firm
on Monday as a weaker dollar ahead of the U.S. rates decision
boosted emerging market assets including Central Eastern
European currencies.
Israel's economy grew more slowly in the second quarter than previously thought, data showed on Monday, as the war in Gaza against the Palestinian Islamist group Hamas continued to take a toll on growth, while creating inflationary pressures.
Despite three interest rate cuts since June, Canadian consumers still appear to be feeling more stressed than their neighbors in the U.S., where the Federal Reserve has yet to start any reductions in borrowing costs. The persistent financial pressure reflects the vagaries of the Canadian mortgage structure, a surge in rents and a heavy debt load carried by many households.
The S&P 500 was little changed while the Nasdaq fell on Monday, weighed down by a drop in technology stocks as investors continued to gauge the likelihood of an upsized rate cut from the Federal Reserve this week. The S&P technology index, the best performer of the 11 major S&P sectors this year, lost roughly 1% as the session's biggest decliner.
* Futures: Dow up 0.23%, S&P 500 up 0.12%, Nasdaq off 0.02% U.S. stock index futures were flat to slightly higher on Monday as caution prevailed ahead of a pivotal monetary policy decision by the Federal Reserve later in the week, with investors pricing in a steep reduction in borrowing costs.
The Indian rupee ended unchanged on Monday while dollar-rupee forward premiums rose on heightened chances of an outsized 50-basis-point rate cut by the U.S. Federal Reserve this week. The rupee ended at 83.8875 against the U.S. dollar, the same as its closing level on Friday.
A look at the day ahead in U.S. and global markets from Mike Dolan. After an extraordinary 30-month monetary squeeze designed to zap a post-pandemic inflation spike, the Federal Reserve is finally set to cut interest rates this week - and it's now only a matter of how much.
A look at the day ahead in U.S. and global markets from Mike Dolan After an extraordinary 30-month monetary squeeze designed to zap a post-pandemic inflation spike, the Federal Reserve is finally set to cut interest rates this week - and it's now only a matter of how much.
Israel's economy grew slower in the second quarter than previously thought, data showed on Monday, as Israel's war in Gaza against the Palestinian Islamist group Hamas continued to take a toll on growth. Gross domestic product rose by an annualised 0.7% in the April-June period, the Central Bureau of Statistics said on Monday in its second estimate, down from an initial 1.2% reported a month ago.
* Canadian mortgages are largely variable or 5-year fixed. * Rents have risen faster than inflation. * Canadians were heavily indebted before rate hikes began. * Consumers are saving more to keep up with debt payments. By Promit Mukherjee.
Italy's Central Bank governor Fabio Panetta on Monday threw his weight behind a plan to help poorer countries reduce their carbon emissions, saying it would ultimately reduce the overall cost of the energy transition.
Euro zone government bond yields were mixed on Monday as money markets increased their bets on a super-sized 50 basis point rate cut by the Federal Reserve on Wednesday. The Bank of England and the Bank of Japan will also hold their policy meetings later this week and are expected to keep rates at the current levels.
The British pound rose against the dollar on Monday, after closing slightly in negative territory last week, ahead of this week's UK inflation data and central bank meeting. Sterling rose by 0.5% on the day to $1.3190, above the $1.3125 it recorded at Friday's close.
* Silver up 1% * US dollar down 0.4% * Gold to hit $2,900 by end of 2025, ANZ analysts say. By Ashitha Shivaprasad. Gold prices charged to a record high on Monday as a weaker dollar and the prospects of aggressive U.S. monetary policy easing boosted non-yielding bullion's appeal.
- Asian bonds attracted foreign inflows for a fourth successive month in August on optimism that the U.S. Federal Reserve will start easing interest rates in September.
Asian bonds attracted foreign inflows for a fourth successive month in August on optimism that the U.S. Federal Reserve will start easing interest rates in September.
* EM stocks touch more than one-week high. * * South African rand hits over one-week high. * EM FX up 0.2%, stocks add 0.4% By Ankika Biswas. Steady risk appetite propelled an emerging market currency index to a record high on Monday as investors were convinced that the U.S. Federal Reserve would deliver a big interest rate cut in a week marked by other key central bank policy decisions.
The dollar weakened and the yen hit its highest level in more than a year on Monday, as market participants increasingly expected an oversized rate cut by the Federal Reserve later this week. The dollar fell to as low as 139.58 yen, falling further from the 140.285 end-December low it struck on Friday to levels last seen in July 2023.
* Shares dip in Europe, Treasuries firm. * Futures imply 60% chance of outsized Fed rate cut. * China data disappoints, adding to case for stimulus. * Trump safe after FBI prevents second assassination attempt. By Amanda Cooper.
European shares started a data-packed week on a lower note as traders maintained a cautious stance ahead of a long-awaited monetary easing cycle by the U.S. Federal Reserve, with many leaning towards a bigger-than-expected rate reduction. The pan-European STOXX 600 index was down 0.3%, as of 0710 GMT on Monday, with all major European markets lower and most of the sub-indexes trading in the red.
* Markets await decision on US Fed interest rate cut. * More than 12% of crude output in Gulf of Mexico still offline. * Poor August data stokes China demand worries. By Nicole Jao.
Euro zone government bond yields edged lower on Monday as investors awaited the Federal Reserve rate decision in a week packed with central bank policy meetings. Markets expect the Fed to start its easing cycle, while the Bank of England and the Bank of Japan are considered likely to hold.
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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