Brazil's gross domestic product grew by 0.9% in the third quarter, data from government statistics agency IBGE showed on Tuesday, matching the forecast in a Reuters poll of economists. On an annual basis, GDP rose 4.0%, slightly above the projected 3.9% expansion.
Monetary easing by central banks across developed and emerging economies trundled along in November with markets warily gearing up for a new year that could bring tectonic shifts to the global policy making backdrop. Four of the six central banks overseeing the 10 most heavily traded currencies that held meetings in November lowered their lending benchmarks.
Sterling gained against the dollar on Tuesday after dovish comments from Federal Reserve Governor Christopher Waller and was steady against the euro as political turmoil in France kept investors on edge. The pound was last up 0.16% at $1.2678, recovering some of Monday's 0.7% loss.
- U.S. stock index futures were muted on Tuesday after the S&P and the Nasdaq notched record high levels in the last session, with focus on a crucial jobs report later this week along with more data and commentary from Federal Reserve officials.
- U.S. stock index futures were muted on Tuesday after the S&P and the Nasdaq notched record high levels in the last session, with focus on a crucial jobs report later this week along with more data and commentary from Federal Reserve officials.
* Futures: Dow down 0.01%, S&P 500 up 0.04%, Nasdaq down 0.02% U.S. stock index futures were muted on Tuesday after the S&P and the Nasdaq notched record high levels in the last session, with focus on a crucial jobs report later this week along with more data and commentary from Federal Reserve officials.
* Fed likely to deliver 25bp rate cut in Dec -UBS. * US job openings data due at 1500 GMT. * Fed's Waller says inclined to cut rates in December. * Benchmark US 10-year Treasury yields near late Oct lows. By Daksh Grover.
Import tariffs expected to be implemented by the administration of U.S. President-elect Donald Trump could lower economic growth and inflation in the 20 nations sharing the euro, European Central Bank board member Piero Cipollone said on Tuesday. Most economists agree that the possible tariffs would impact growth, though views diverge on the effect on consumer prices.
Swiss inflation rose less than expected in November, official data showed on Tuesday, boosting bets for a bigger interest rate cut by the Swiss National Bank next week. Swiss annual inflation advanced to 0.7% in November from 0.6% the previous month, according to figures from the Federal Statistics Office.
Japanese government bond yields hovered in a tight range on Tuesday, as an auction for 10-year bonds made few waves amid heightened expectations that the Bank of Japan will raise interest rates this month. The 10-year JGB yield rose to as high as 1.085% but was last flat at 1.075% after the auction, while 10-year JGB futures rose 0.05 points to 142.87 yen.
Gold prices edged higher on Tuesday, supported by growing expectations of a U.S. interest rate cut this month, as focus shifted to upcoming economic data for additional insights. FUNDAMENTALS. * Spot gold was up 0.1% at $2,642.42 per ounce, as of 0103 GMT, after falling as much as 1% on Monday.
Federal Reserve Bank of New York President John Williams said on Monday that while it was clear interest rates are likely go down over time, he could not yet say what the central bank's next move will be.
Federal Reserve Bank of New York President John Williams said on Monday the U.S. central bank is likely to lower its interest rate target further over time as inflation pressures continue to cool.
Federal Reserve Bank of New York President John Williams said on Monday the U.S. central bank is likely to lower its interest rate target further over time as inflation pressures continue to cool.
* Brent and WTI rose more than 1% earlier in the session. * China's factory activity expands in November. * Atlanta Fed President says open mind about whether to cut rates. * OPEC+ to discuss oil policy on Dec. 5. By Arathy Somasekhar.
Federal Reserve Governor Christopher Waller, whose views are often a bellwether for U.S. monetary policy, said on Monday that with inflation still forecast to fall to 2% he is inclined "at present" to support another interest rate cut later this month.
- Atlanta Federal Reserve President Raphael Bostic said on Monday he has an open mind about whether to cut interest rates again at the Fed's December meeting, with upcoming data on jobs important in shaping the decision. "There is a lot of uncertainty," Bostic said in comments to reporters.
* Manufacturing PMI increases to 48.4 in November. * New orders gauge above 50 for the first time in eight months. * Potential tariffs on Chinese imports worry manufacturers. * Construction spending increases 0.4% in October. By Lucia Mutikani.
U.S. Treasury yields rose on Monday as data showed manufacturing activity improved in November, with orders growing for the first time in eight months and factories facing significantly lower prices for inputs. The yield on the benchmark U.S. 10-year Treasury note rose 2.7 basis points to 4.221%, paring back an earlier sharper rise.
* Dollar up 0.7%, set for it best day in nearly 4 weeks. * Expect choppy, consolidative gold market into year-end - analyst. * Most brokerages see 25-bps rate cut in December. * US ADP employment report, non-farm payrolls due this week. By Sherin Elizabeth Varghese.
U.S. construction spending increased more than expected in October, boosted by single-family homebuilding. The Commerce Department's Census Bureau said on Monday construction spending rose 0.4% after an unrevised 0.1% gain in September.
U.S. construction spending increased more than expected in October, boosted by single-family homebuilding. The Commerce Department's Census Bureau said on Monday construction spending rose 0.4% after an unrevised 0.1% gain in September.
Brazil's incoming central bank chief said on Monday that the current scenario points to "higher interest rates for longer," while also emphasizing continued exchange rate policy focused on intervening only during times of dysfunction.
* Manufacturing PMI increases to 48.4 in November. * New orders gauge rises above 50 for the first time in eight months. By Lucia Mutikani. U.S. manufacturing activity improved in November, with orders growing for the first time in eight months and factories facing significantly lower prices for inputs.
Canadian manufacturing activity increased at the fastest pace in 21 months in November as the Bank of Canada's interest-rate cutting campaign boosted domestic demand and despite port strikes that worsened delivery delays, data showed on Monday.
Brazil's incoming central bank chief Gabriel Galipolo said on Monday that the current scenario points to "higher interest rates for longer." Speaking at an event hosted by XP, he said it seemed "logical" for an economy that has been showing greater dynamism and tightness than anticipated, alongside a weaker domestic currency, to "require a more contractionary monetary policy."
Morocco's first futures contracts will be based on the MASI 20 index, which tracks the top 20 firms by market capitalisation, the North African country's bourse regulator said on Monday. The AMMC, together with the central bank and the finance ministry, said last month that the market was ready to launch a derivatives market and a clearing house starting with futures.
Chile's IMACEC economic activity index was up 2.3% in October compared with a year earlier, the central bank said on Monday, slightly below the 2.5% growth expected by economists polled by Reuters. Economic activity in the world's largest copper producer rose 0.4% compared with the previous month, the central bank added.
For much of the past 17 years the Federal Reserve has been the central player in U.S. economic policy, throwing multi-trillion-dollar safety nets under the financial system, offering nearly a decade of ultra-cheap money, jumping redlines during the COVID-19 pandemic, and delving more into areas like equity and climate change.
* Futures: Dow down 0.1%, S&P 500 and Nasdaq down 0.2% each. U.S. stock index futures started December lower after recording robust gains last month, with focus on a slate of economic data later this week, including a jobs report, to gauge the Federal Reserve's interest rate path.
Indonesia and Canada on Monday signed a Comprehensive Economic Partnership Agreement that aims to strengthen economic ties between the two G20 members, three years after negotiations began. The agreement will take effect in 2026 and was signed in Jakarta by trade ministers of both countries.
A gauge of British manufacturing activity released on Monday pointed to the sharpest contraction in nine months, as orders from domestic and foreign customers fell and ongoing supply chain disruption pushed up costs.
A gauge of British manufacturing activity released on Monday pointed to the sharpest contraction in nine months, as orders from domestic and foreign customers fell and ongoing supply chain disruption pushed up costs.
Euro zone manufacturing activity fell sharply last month and a further decline in demand likely dashed any hopes for an imminent recovery after the sector had showed some signs of stabilisation in October, a survey showed.
Euro zone manufacturing activity fell sharply last month and a further decline in demand likely dashed any hopes for an imminent recovery after the sector had showed some signs of stabilisation in October, a survey showed.
Falling orders extended a contraction in the Polish and Czech manufacturing sectors in November, surveys showed on Monday, as weakness in Germany kept up pressure. S&P Global's Polish Purchasing Managers' Index slipped to 48.9 in November from 49.2 in October, marking the first drop in five months.
Germany's manufacturing sector remained firmly entrenched in contraction territory in November as firms struggle with weak demand and competitive pressure, highlighting ongoing challenges for Europe's largest economy, a survey showed on Monday. The HCOB Germany Manufacturing Purchasing Managers' Index, compiled by S&P Global, held steady at 43.0, unchanged from October.
Spain's manufacturing sector expanded at a slower pace in November, hindered by the severe floods in the region of Valencia on the eastern coast, a survey showed on Monday, though confidence in future growth remained robust.
Turkish factory activity contracted for the eighth month in a row in November with output and new orders moderating, although the sector showed signs of recovery, a business survey showed on Monday.
- The European Central Bank should make future monetary policy decisions based on upcoming risk rather than the latest economic data, ECB chief economist Philip Lane told the Financial Times in an interview published on Monday.
The European Central Bank should make future monetary policy decisions based on upcoming risk rather than the latest economic data, ECB chief economist Philip Lane told the Financial Times in an interview published on Monday.
Japan's two-year government bond yield hit a 16-year high on Monday as comments from the Bank of Japan's governor drove bets for the central bank to hike interest rates as soon as this month.
The European Central Bank should make future monetary policy decisions that are driven by upcoming risks rather than being backward-looking, ECB chief economist Philip Lane told the Financial Times in an interview published on Monday.
* Dollar braces for payrolls, host of Fed speakers. * Yen off highs, ponder chance of BOJ rate hike. * Euro grapples with French politics, budget risk. By Wayne Cole. The dollar pushed higher again on Monday in what is shaping up to be a critical week for the prospect of U.S. rate cuts, while drawing verbal support from U.S. President-elect Donald Trump.
* European manufacturing activity fell sharply in November. * China's factory activity expands at fastest pace in five months. * Beijing's stimulus aids recovery, but domestic demand still weak. * Trump's proposed tariffs seen posing risks to global trade. By Jonathan Cable.
Singapore's central bank on Monday said it fined U.S. lender JPMorgan Chase (JPM) a civil penalty of S$2.4 million for failing to prevent and detect misconduct committed by its relationship managers.
Australia's central bank said on Monday that risks from non-bank lenders in securitisation are limited as the labour market remained resilient, supporting households and businesses, and the size of the sector remains small overall.
* Q3 capex up 8.1% year-on-year, accelerates from 7.4% gain in Q2. * Corporate recurring profits mark first fall in 7 quarters. * Capex data used to calculate revised GDP. * Preliminary data showed Q3 GDP rose an annualised 0.9% By Makiko Yamazaki.
China's factory activity expanded at the fastest pace in five months in November as new orders, including those from abroad, led to a solid rise in production, pushing manufacturers' optimism degree to an eight-month high, a private-sector survey showed on Monday.
* Caixin/S&P Global PMI rose to 51.5 in November, highest since June. * New export orders rose for first time in four months. * Chinese firms cautious on hiring despite improved economic conditions.
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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