* Fed chair Warsh set to lead first meeting. * Central bank expected to hold rates steady on Wednesday. * Indexes down from record highs as tech stocks falter. By Lewis Krauskopf. A suddenly rocky U.S. stock market confronts a potential wildcard next week: A newly led Federal Reserve at a time investors are worried that interest rate hikes to fight inflation could dampen enthusiasm for equities.
Peru's economy is "doing well," underpinned by rising domestic demand and private investment, central bank chief economist Adrian Armas said on Friday, although he warned the El Ni?o weather pattern could cloud the outlook.
* Traders monitor potential US-Iran peace deal. * Policy meeting under new Fed Chair Kevin Warsh may bring changes to communication style. * Markets expect interest rates to remain on hold. * Focus will be on Warsh's press conference, rate-hike signals. By Karen Brettell.
* Indexes: Dow up 0.76%, S&P 500 up 0.51%, Nasdaq up 0.27% * U.S. equity funds record first weekly outflow in three weeks. * SpaceX surges after public debut, set for $2 trln in market cap. * Space stocks slide after rallying ahead of SpaceX debut. * Adobe drops after exit of CFO Dan Durn. By Johann M Cherian and Twesha Dikshit.
* U.S.-Iran peace memorandum could be signed on Sunday in Geneva. * Spot gold down 2.7% so far for the week. * Markets await June 16-17 Federal Reserve meeting. * Palladium heads for weekly gain. By Anushree Mukherjee. Gold headed for a second straight weekly loss on Friday as expectations of higher interest rates weighed on the non-yielding metal ahead of next week's Federal Reserve meeting.
* Consumer sentiment index rises to 48.9 in June, above economists' expectations for a 46.0 reading. * Lower-income households lead broad improvement in sentiment. * Inflation expectations ease to still-elevated levels. By Lucia Mutikani.
Brazilian digital lender Nubank said on Friday it was aware of an erroneous message sent to customers claiming the firm was liquidated by the country's central bank, adding the incident resulted from an "one-time operational error." In a statement, Nubank, which is listed in New York under Nu
Holdings (NU), said the incident was under internal investigation, and did not affect clients' data protection.
Expectations for U.S. monetary tightening and a strong dollar have taken some wind out of the "perfect storm" powering an upswing in gold since 2023, leaving prices in vulnerable territory around $4,000 per ounce as the interest rate backdrop unfolds.
* Traders monitor potential US-Iran peace deal. * Policy meeting under new Fed Chair Kevin Warsh may bring changes to communication style. * Markets expect interest rates to remain on hold. * Focus will be on Warsh's press conference, rate-hike signals. By Karen Brettell.
U.S. consumer sentiment bounced off record lows in early June as easing gasoline prices offered households some relief, though concerns about inflation stoked by the Middle East conflict lingered. Lower-income households led the broad improvement in sentiment reported by the University of Michigan's Surveys of Consumers on Friday.
Brazil's consumer inflation accelerated more than expected in May, official data showed on Friday, breaching the top of the central bank's target range for the first time since October ahead of a key rate decision next week.
From the Editor. Hello Morning Bid readers! While markets expect the Federal Reserve to sit on its hands at its June 17 meeting, they are pricing in a strong chance of a 25-basis-point rate hike by December. Of course, the global inflation picture is still largely dependent on two questions: when will the U.S.-Israeli war with Iran end and what will the final deal look like?
* BOJ to review taper plan, lay out new one beyond fiscal 2027. * Board split between advocates of pause, steady normalisation. * Runoff of maturing JGBs will keep reducing BOJ's bond holdings. * BOJ to announce decision after two-day meeting ending June 16. By Leika Kihara and Takahiko Wada.
By Leika Kihara and Takahiko Wada. The Bank of Japan will consider suspending the reduction in its government bond purchases from April 2027 onward, sources said, pausing a taper process that would mark a turning point in its quantitative tightening plan.
A suddenly rocky U.S. stock market confronts a potential wildcard next week: A newly led Federal Reserve at a time investors are worried that interest rate hikes to fight inflation could dampen enthusiasm for equities.
* Fed chair Warsh set to lead first meeting. * Central bank expected to hold rates steady on Wednesday. * Indexes down from record highs as tech stocks falter. By Lewis Krauskopf. A suddenly rocky U.S. stock market confronts a potential wildcard next week: A newly led Federal Reserve at a time investors are worried that interest rate hikes to fight inflation could dampen enthusiasm for equities.
* Hungarian forint nears multi-year highs. * India may allow fiscal deficit to widen to 4.8% of GDP, Bloomberg News reports. * Oil prices slip over 4% By Avinash P. Emerging market assets gained on Friday after U.S. President Donald Trump signalled a deal to end the Iran war could be signed as soon as this weekend.
The Federal Reserve holds its first meeting with Kevin Warsh in charge, Donald Trump is due to meet other world leaders in France as the Iran war drags on, while a by-election in northern England could launch a contest to oust Britain's prime minister.
* Sterling gains despite UK GDP contraction and entertainment sector hit. * Investors focus on Middle East peace optimism, easing energy cost concerns. * Upcoming by-election and Bank of England meeting seen as key for sterling. By Amanda Cooper.
The following are the top stories on the New York Times business pages. - SpaceX, Elon Musk's rocket and satellite maker, officially finalized its initial public offering price at $135 a share. - The war in the Middle East is slowing global economic growth this year to its weakest pace since the Covid-19 pandemic, according to a World Bank report.
The dollar found its footing in early trading on Friday, after sliding to its weakest in a week as traders parsed reports that a ceasefire deal in the Middle East could be imminent. Against the yen, the U.S. currency was up 0.1% at 160.07 yen. The euro last bought $1.1576, holding near its strongest in a week after the European Central Bank's first interest rate hike in three years on Thursday.
By Leika Kihara. The Bank of Japan is set to raise interest rates to a 31-year high next week and signal its readiness to keep pushing up borrowing costs, undeterred by the absence of its governor as it focuses on countering inflation risks from the Middle East war.
Peru's central bank held its benchmark interest rate at 4.25% on Thursday, extending its pause for a ninth straight meeting, in line with market expectations.
New Zealand's manufacturing activity contracted slightly in May, slipping back into negative territory after seven months of expansion, as businesses remained concerned about weak demand and global economic pressures. The Bank of New Zealand-Business NZ's seasonally adjusted Performance of Manufacturing Index fell to 49.9 in May from 50.4 in April and 52.8 in March.
The New York Federal Reserve's operations desk plans to conduct about $16.5 billion in reinvestment purchases and an additional approximately $10 billion in reserve management purchases between June 12 and July 13, it said in a schedule released on Thursday.
U.S. producer prices increased more than expected in May, leading to the largest annual gain in 3-1/2 years as the Middle East conflict boosted the cost of energy products, providing more evidence that inflation pressures were building up.
European Central Bank policymakers see keeping interest rates on hold at their next meeting in July as the more likely scenario, if energy prices stayed near their current level, two sources told Reuters.
Denmark's central bank raised its key interest rate by 25 basis points to 1.85% on Thursday as expected, following the European Central Bank's decision earlier in the day to hike rates.
* ECB delivers first rate hike since 2023. * Hot inflation keeps investors on edge about US rate outlook. * BOJ chief Ueda hospitalised and will miss next week's meeting. By Chibuike Oguh.
* Producer Price Index increases 1.1% in May, above expectations for a 0.7% gain. * Goods prices, mostly energy, account for nearly 80% of the rise in the PPI. * Wholesale goods prices excluding food and energy post largest monthly gain since April 2022. * Weekly jobless claims increase 4,000 to 229,000. By Lucia Mutikani.
* ECB raises rates for first time in nearly three years, BoC on hold. * Fed, BoE set to hold next week, BOJ likely to hike. * Switzerland and Sweden not in any rush. By Stefano Rebaudo and Alun John.
* US, Iranian attacks dent peace deal hopes. * US producer prices increase more than expected in May. * Traders see 69% chance of US rate hike in December. By Anushree Mukherjee.
The World Bank on Thursday cut its global growth forecast for 2026 to 2.5% due to the war in the Middle East, and said growth could slow to just 1.3% if energy supply disruptions prove more severe and come with substantial stress in financial markets.
* Global inflation projected at 4% amid elevated oil and fertilizer prices, World Bank reports. * World Bank expects policy uncertainty and high interest rates to persist for years. * Middle East, North Africa, Afghanistan, Pakistan see sharpest growth downgrades. By Andrea Shalal.
Following is the text of European Central Bank President Christine Lagarde's statement after the bank's policy meeting on Thursday: Link to statement on ECB website: https://www.ecb.europa.eu/press/press_conference/monetary-policy-statement/2026/html/ecb.is260611~372040d313.en.html. Good afternoon, the Vice-President and I welcome you to our press conference.
U.S. producer prices increased more than expected in May, leading to the largest annual gain in 3-1/2 years as the Middle East conflict boosted the cost of energy products, providing more evidence that inflation pressures were building up.
The European Central Bank cemented market expectations for further rate hikes on Thursday, as it raised borrowing costs for the first time since 2023 to quell inflationary pressures brought about by the Iran war.
The number of Americans filing claims for unemployment benefits increased marginally last week, pointing to continued labor market resilience in early June. Initial claims for state unemployment benefits rose 4,000 to a seasonally adjusted 229,000 for the week ended June 6, the Labor Department said on Thursday.
The number of Americans filing claims for unemployment benefits increased marginally last week, pointing to continued labor market resilience in early June. Out-of-work Americans are struggling to land new opportunities.
High mortgage rates will keep turnover in U.S. residential housing subdued this year and next with very modest price rises, according to property specialists surveyed by Reuters, thwarting the Trump administration's aim to revive the market. The benchmark 30-year mortgage rate, which underpins most U.S. home loans, has hovered around 6.6% in recent months.
The European Central Bank raised interest rates as expected on Thursday, hoping to prevent an Iran war-induced surge in energy prices from broadening out into higher inflation.
The pound held firm against the euro on Thursday ahead of a European Central Bank meeting that should be the day's main driver for the currency pair with little in terms of scheduled news due from Britain. The euro was last at 86.3 pence, steady on the day, but near the bottom of its trading range for the year so far.
What matters in U.S. and global markets today. By Mike Dolan, Editor-at-Large, Finance and Markets. Markets are getting hit on several fronts: war, inflation, interest rate rises and tech jitters. True, Trump may have misspoken and was likely nodding not to elevated prices themselves, but to the fact that May's core CPI reading was slightly cooler than forecast. I'll get into that and more below.
Copper prices drifted to their lowest in three weeks on Thursday as the U.S. and Iran exchanged more attacks, prompting funds to liquidate positions on worries about higher interest rates, weaker global economic growth and softer metals demand.
Euro zone government bond yields edged down on Thursday, reversing an earlier rise, as investors watched moves in oil prices and tensions in the Middle East ahead of the European Central Bank's policy decision later in the day.
* US and Iran exchange fire for a second straight day. * Traders see 67% chance of US rate hike in December. * May U.S. producer price index data due at 1230 GMT. By Noel John. Gold prices rose on Thursday, rebounding from a six-month low, as investors covered their short positions, though concerns around higher inflation and U.S. interest rates capped gains.
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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