* Job growth beats expectations. * Unemployment rate steady at 3.7% * Ford falls on lower November vehicle sales. * Dow up 0.1%, S&P 500 down 0.12%, Nasdaq down 0.18% By Chuck Mikolajczak.
Treasury yields pared sharp
gains on Friday after a strong U.S. jobs report for November
showed a resilient labor market with rising wages, a potential
thorn for the Federal Reserve as it moves to ...
- Persistently massive inflows of cash into a key Federal Reserve facility are in large part being driven by a bank liquidity regulation change from last year, a report from the New York Fed said Friday. The Fed's facility offers what are called reverse repos, which allow eligible firms to park cash at the central bank in exchange for a risk-free return.
Latin American currencies fell on
Friday after a stronger-than-expected reading on U.S. employment
raised concerns about a hawkish Federal Reserve, while South
Africa's rand rebounded a day ...
The dollar dipped on Friday
as a Federal Reserve official said rate hikes are likely to slow
and as investors took profits from earlier gains after jobs data
and wage inflation were surprisingly ...
The U.S. Federal Reserve Board on Friday joined other key banking regulators in proposing a plan for how large banks should manage climate-related financial risks, drawing immediate dissent from one member and reservations from another.
Treasury yields were little
changed on Friday after a strong unemployment report for
November showed a resilient labor market with rising wages, a
potential thorn for the Federal Reserve as it moves ...
* Job growth beats expectations; unemployment rate steady at 3.7% * Ford falls on lower November vehicle sales. * Dow down 0.29%, S&P 500 down 0.54%, Nasdaq down 0.75% By Chuck Mikolajczak.
U.S. employers hired more workers than expected in November and increased wages, shrugging off mounting worries of a recession, but that will probably not stop the Federal Reserve from slowing the pace of its interest rate hikes starting this month.
- The Federal Reserve will likely need to raise borrowing costs to a "slightly higher" peak than envisioned in forecasts from September, Chicago Federal Reserve Bank President Charles Evans said on Friday.
The pace and scale of rate hikes delivered by central banks in November picked up speed again as policy makers around the globe battle decade high inflation. Central banks overseeing six of the 10 most heavily traded currencies delivered 350 basis points of rate hikes between them last month.
The Canadian dollar weakened against its U.S. counterpart on Friday as domestic jobs data caused few surprises, while a stronger-than-expected U.S. jobs gain ran counter to hopes that the Federal Reserve would soon slow the pace of rate hikes.
* Canadian dollar weakens 0.2% against the greenback. * For the week, the loonie was on track to fall 0.6% * Canada adds 10,100 jobs in November. * Canadian bond yields rise across curve. The Canadian dollar weakened against its broadly stronger U.S. counterpart on Friday as investors weighed U.S. and Canadian jobs data for its impact on the pace of central bank interest rate hikes.
Canada's main stock index opened lower on Friday after data showed the economy added more-than-anticipated jobs in November, while falling bullion prices further weighed on the index. At 09:31 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down 153.6 points, or 0.75%, at 20,371.85.
The dollar jumped on Friday
after data showed that U.S. employers added more jobs than
expected in November while average hourly earnings also
increased, potentially giving the Federal Reserve more ...
Wall Street's main indexes opened lower on Friday as higher-than-expected job additions in November poured cold water on investor expectations of the Federal Reserve easing its aggressive monetary policy tightening.
-The Federal Reserve is seen driving its policy rate above 5% by May after a government report Friday showed little sign of a cooling job market, despite the central bank's aggressive interest-rate increases so far.
The Canadian economy added a limited number of jobs in November and the unemployment rate came in lower than expected as fewer people looked for work, official data showed on Friday, in a tepid report that may bolster the chances for a normal-sized interest rate increase next week.
The Canadian economy added a limited number of jobs in November and the unemployment rate came in lower than expected as fewer people looked for work, official data showed on Friday, in a tepid report that may bolster the chances for a normal-sized interest rate increase next week.
The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation.
U.S. stock index futures fell sharply on Friday as higher-than-expected job additions in November poured cold water on investor expectations of the Federal Reserve easing its aggressive monetary policy tightening. Money market bets show an 87% chance of a 50-basis point hike by the Fed at its December meeting, down from 91% before the data was published.
Brazil's central bank is set to keep its benchmark interest rate at a cycle-high of 13.75% next week, stressing heightened worries over new government plans to boost social spending, a Reuters poll showed.
Industrial production in Brazil rose 0.3% in October from September, government statistics agency IBGE said on Friday, returning to positive territory after two consecutive monthly declines though still below pre-pandemic levels. The median estimate in a Reuters poll of economists had projected stability from the previous month.
Industrial production in Brazil rose 0.3% in October from September, government statistics agency IBGE said on Friday, returning to positive territory after two consecutive monthly declines though still below pre-pandemic levels. The median estimate in a Reuters poll of economists had projected stability from the previous month.
- Global equity funds recorded enormous outflows in the week ended on Nov. 30 as investors booked profits - after a rally in the last month - amid concerns about global economic growth due to China's strict zero-COVID curbs. According to Refinitiv Lipper data, investors withdrew a net $5.44 billion out of global equity funds, the highest since the week ended Oct. 19.
Global equity funds recorded enormous outflows in the week ended on Nov. 30 as investors booked profits - after a rally in the last month - amid concerns about global economic growth due to China's strict zero-COVID curbs. According to Refinitiv Lipper data, investors withdrew a net $5.44 billion out of global equity funds, the highest since the week ended Oct. 19.
The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation.
* Futures off: Dow 0.07%, S&P 0.02%, Nasdaq 0.07% U.S. stock index futures edged lower on Friday as investors await the monthly jobs report for November, which would provide more clues on the Federal Reserve's path of monetary tightening.
New U.S. Federal Reserve projections, issued later this month alongside an expected half-point interest rate increase, could show the central bank's target rate headed toward levels last seen on the eve of the 2007 financial crisis, and will also reveal policymakers' best guess of the fallout that will have for a so-far resilient job market.
U.S. Federal Reserve officials have signaled plans for a half-point interest rate hike at their meeting this month, and while that would be a step down from recent rate increases, new projections issued then could show a policy rate headed toward levels last seen on the eve of the 2007 financial crisis.
Bank of France deputy governor Sylvie Goulard is leaving the French central bank on Dec 5 to join the French Foreign Ministry, the central bank said on Friday.
The Bank of Japan bought 70.1 billion yen of exchange-traded funds on Friday, stepping into the market for the first time in six months, the central bank data showed.
- Swiss lender Credit Suisse faces a litmus test over its rights issue, just one several trials markets must work through between now and year-end even if some are already gearing up for festive cheer. U.S. data will provide a reality check on the shifting nature of inflation while policy makers at Australia's central bank and OPEC+ ministers are due to meet.
India began its year-long presidency of the Group of 20 this week, taking over from Indonesia at a time of geopolitical tumult and uncertainty over post-pandemic economic recovery. WHAT IS THE G20?
Swiss lender Credit Suisse faces a litmus test over its rights issue, just one several trials markets must work through between now and year-end even if some are already gearing up for festive cheer. U.S. data will provide a reality check on the shifting nature of inflation while policy makers at Australia's central bank and OPEC+ ministers are due to meet.
What many people saw as an open goal for the Federal Reserve chair on Wednesday, it seems Jerome Powell saw as a potential own goal. Nearly everyone expected him to use his eagerly awaited speech on the economic outlook and the labor market at the Brookings Institution think tank to push back on the significant easing of U.S. financial conditions in recent weeks.
Copper prices traded within a narrow range on Friday, but were set for weekly gains as traders assessed bets of a slower pace of U.S. interest rate hikes and China's re-opening. Three-month copper on the London Metal Exchange held its ground at $8,332 a tonne, as of 0532 GMT, having gained 4% so far this week.
The dollar held firm on Friday but was pinned near 16-week lows against a basket of major currencies as data showing increased U.S. consumer spending emboldened investors' hopes that the peak in interest rates was in sight.
A look at the day ahead in European and global markets from Tom Westbrook: Having just closed out its worst month since 2010, the dollar's bull run may be ending. Federal Reserve Chair Jerome Powell green-lit selling this week, surprising traders by not pushing back against markets' shifting financial conditions looser in the last few weeks.
A look at the day ahead in European and global markets from Tom Westbrook: Having just closed out its worst month since 2010, the dollar's bull run may be ending. Federal Reserve Chair Jerome Powell green-lit selling this week, surprising traders by not pushing back against markets' shifting financial conditions looser in the last few weeks.
U.S. employers hired more workers than expected in November and increased wages, shrugging off mounting worries of a recession, but that will probably not stop the Federal Reserve from slowing the pace of its interest rate hikes starting this month.
* Nonfarm payrolls forecast increasing 200,000 in November. * Unemployment rate seen unchanged at 3.7% * Average hourly earnings forecast gaining 0.3%; up 4.6% y/y. By Lucia Mutikani.
European Central Bank President Christine Lagarde warned on Friday that some European governments' fiscal policies could lead to excess demand, and that fiscal and monetary policies need to work in synch for sustainable, balanced economic growth.
China's central bank will focus on supporting the slowing economy, People's Bank of China Governor Yi Gang said on Friday, adding that domestic consumer inflation is likely to stay moderate in 2023. The central bank's accommodative policy will help support China's economic recovery and employment, Yi said in a video speech to the Bank of Thailand-BIS conference in Bangkok.
China's central bank will focus on supporting the slowing economy, People's Bank of China Governor Yi Gang said on Friday, adding that domestic consumer inflation is likely to stay moderate in 2023. The central bank's accommodative policy will help support China's economic recovery and employment, Yi said in a video speech to the Bank of Thailand-BIS conference in Bangkok.
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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