China's statistics bureau on Monday said it expects China's economy to improve in May and that a recovery in consumption would quicken. China is steadily pushing forward production resumption in COVID-hit areas, said Fu Linghui, spokesman for the National Bureau of Statistics, adding that China's economy would maintain a relatively sound trend in the second quarter.
The Reserve Bank of India will follow its surprise May rate rise with another hike at its meeting next month, according to a majority of analysts polled by Reuters who were exceptionally split on the size of the move. India's retail inflation accelerated to an eight-year high in April, remaining above the central bank's tolerance limit for a fourth month in a row, and is likely to stay elevated.
China's industrial output fell 2.9% in April from a year earlier, down sharply from a 5.0% increase in March, data from the National Bureau of Statistics showed on Monday, and weaker than 0.4% growth seen in a Reuters poll. Retail sales in April shrank 11.1% year-on-year amid wider and stringent COVID-19 curbs on activity, after falling 3.5% in March.
* Abenomics laid too much burden on monetary policy - Nakaso. * Green investment can be new 'third arrow' * Boosting Japan's growth potential will help BOJ normalise policy. * Tokyo must become Asian market hub for transition finance. By Leika Kihara and Takahiko Wada.
The dollar started the week just off a 20-year high against peers on Monday, as investors sought safety due to fears about global growth while cryptocurrency markets appeared to find some stability after last week's turmoil. The dollar index was at 104.54, having briefly crossed the 105 level on Friday, its highest since December 2002, after six successive weeks of gains.
* April wholesale prices rise 10.0% yr/yr vs f'cast +9.4% * Yen's drop pushes up import prices, hurt companies. * Core CPI on Friday seen rising faster than BOJ's target in April. By Daniel Leussink.
U.S. stocks closed mixed on Monday as downbeat Chinese and New York state data kindled recession fears, but the 10-year Treasury note's yield staying firmly under 3% spurred hopes the Federal Reserve will prudently hike interest rate hikes.
The South Korean central bank chief's comment that he could consider big-step interest rate raises in coming months shook the local bond market on Monday, as Asia's fourth-largest economy also braced for fast slowing in growth.
Former Goldman Sachs CEO Lloyd Blankfein said on Sunday he believes the economy is at risk of possibly going into a recession, as the U.S. Federal Reserve continues to raise interest rates to tackle rising inflation. Speaking on "Face the Nation" on CBS, Blankfein said a recession is "a very, very high risk factor." "There's a path. "But I think the Fed has very powerful tools.
Former Goldman Sachs CEO Lloyd Blankfein said on Sunday he believes the economy is at risk of possibly going into a recession, as the U.S. Federal Reserve continues to raise interest rates to tackle rising inflation. Speaking on "Face the Nation" on CBS, Blankfein said a recession is "a very, very high risk factor." "There's a path. "But I think the Fed has very powerful tools.
The front-runner to head Canada's Conservatives and likely challenger to Liberal Prime Minister Justin Trudeau is staging a rare series of attacks on the central bank as inflation soars, in a strategy to win party leadership that could hurt his chances in a general election.
Nigeria's markets regulator has published a set of regulations for digital assets, signalling Africa's most populous country is trying to find a middle ground between an outright ban on crypto assets and their unregulated use. Nigeria's central bank last year banned banks and financial institutions from dealing in or facilitating transactions in digital currencies.
Bank of Mexico board member Jonathan Heath said on Friday that given the inflation outlook, there is still a "way to go" on tightening monetary policy, following the central bank's latest 50 basis points rate hike to 7.0% this week. "By increasing the monetary policy rate by 50 basis points, the monetary stance returns to neutral territory.
Bank of Mexico board member Jonathan Heath said on Twitter on Friday that given the inflation outlook, there is a "way to go" on tightening monetary policy, following the bank's latest 50 basis points rate hike to 7.0%.
A gauge for Latin American currencies
rose on Friday as the dollar dipped, clawing back some gains in
a volatile week marred by risk-off sentiment on global growth
fears, while Mexico's peso ...
U.S. indices traded?sharply higher Friday following recent weakness.?Markets were highly volatile this week, selling off following the April CPI report, which showed worse-than-expected inflation. The headline CPI rose 8.3% in April, down slightly from 8.5% in March but above economist estimates of 8.1%. Prior to 2022, the CPI hadn't risen 8.3% in any month since 1982.
By Stephen Culp. Wall Street rallied to end higher on Friday, capping a week of wild market gyrations as relief at signs of peaking inflation vied with fears that policy tightening by the Federal Reserve could tilt the economy into recession.
- A week that included a bevy of still-ugly inflation numbers may also have marked a turn in market views of the Federal Reserve, as inflation expectations fell, bond yields moderated, and even consumers stopped ratcheting up their outlook for price increases.
* Twitter drops as Musk puts purchase deal on hold. * All major indexes on course for steep weekly losses. * Indexes up: Dow 0.5%, S&P 1.38%, Nasdaq 2.67% By Stephen Culp. NEW YORK, May 13 - Wall Street rallied on Friday, ending a week of wild market gyrations marked by signs of peaking inflation and worries that the Federal Reserve might tighten policy too aggressively.
U.S. GDP dropped 1.4% in the first quarter of 2022, and the SPDR S&P 500 ETF Trust is down 16.3% year-to-date as investors become increasingly concerned about the possibility of a U.S. recession in 2022. If the Federal Reserve can successfully get inflation under control in coming months, the recent sell-off in U.S. stocks could turn out to be an excellent long-term buying opportunity.
Inflation will need to move lower for "several months" before the Federal Reserve officials can safely conclude it has peaked, Cleveland Fed president Loretta Mester said Friday, adding she would be ready to consider faster rates hike by the September Fed meeting if the data do not show improvement.
* Euro retreats below $1.04. * Dollar on track for sixth straight weekly gain. * Yen poised to snap nine-week losing streak. By Chuck Mikolajczak. The dollar edged lower on Friday, but was still set for a sixth straight week of gains as investors remained concerned about the possibility of global growth slowing and Federal Reserve policy tilting the U.S. into a recession.
-The Federal Reserve will do what it needs to do to bring down very high inflation, Minneapolis Fed President Neel Kashkari said on Friday, though how much it will need to do depends in part on how quickly energy and other supply constraints dissipate.
Treasury yields rose on Friday,
reversing the week's rally in bond prices driven by the largest
weekly inflows since COVID-19 slammed markets in March 2020, as
fears of a Federal Reserve policy ...
Most Latin American currencies rose on
Friday even as the dollar hovered at two-decade highs on Friday,
but were set for weekly losses amid a broader risk-off on global
growth fears, while ...
- Battered U.S. and German government bond markets have just put in their best weekly performance since early March, suggesting a painful surge in yields due to high inflation may finally be abating as the focus turns to growth fears. Gilts in Britain, where the Bank of England warned of a potential recession, saw their best performance since 2011.
Gold fell more than 1% on Friday and is
set for its fourth straight weekly decline, as the dollar's
strong run with more aggressive U.S. interest rates on the
horizon sapped appetite for bullion.
United Arab Emirates President Sheikh Khalifa bin Zayed al Nahyan, who oversaw the transformation of his country into a global economic power, has died at 73. Early Life: Khalifa was born on Sept. 7, 1948, in Abu Dhabi, which was one of the seven Persian Gulf sheikhdoms that existed as British protectorates under the banner of the Trucial States.
- The U.S. economic outlook has weakened and inflation is set to remain higher than previously expected for a while yet, a Federal Reserve Bank of Philadelphia survey of professional economic forecasters showed on Friday.
Wall Street surged on Friday to end higher, closing the book on a week of wild market gyrations as relief at signs of peaking inflation vied with fears that policy tightening by the Federal Reserve could tilt the economy into recession.
U.S. consumer sentiment slumped to its lowest level in nearly 11 years in early May as worries about inflation persisted, but household spending remains underpinned by a strong labor market and massive savings, which should keep the economy expanding.
* Consumer sentiment index falls 9.4% to 59.1 in May. * Import prices unchanged in April, up 12.0% year-on-year. By Lucia Mutikani. U.S. consumer sentiment slumped to its lowest level in nearly 11 years in early May as worries about inflation persisted, but household spending remains underpinned by a strong labor market and massive savings, which should keep the economy expanding.
Copper climbed in volatile trade on Friday, as the dollar lost ground, but prices were still on track for their sixth consecutive week of losses on mounting fears a global economic slowdown would dampen demand. Copper is used in power and construction sectors and widely seen as a barometer of global economic growth.
- U.S. bond funds saw a surge in outflows in the week to May 11 on concerns over higher inflation readings, which cemented expectations of aggressive rate hikes by the Federal Reserve. According to Refinitiv Lipper data, U.S. bond funds faced capital withdrawals for the 18th straight week, amounting to $10.42 billion, nearly twice the $5.9 billion in disposals in the previous week.
Wall Street surged on Friday to end higher, closing the book on a week of wild market gyrations as relief at signs of peaking inflation vied with fears that policy tightening by the Federal Reserve could tilt the economy into recession.
Gold fell on Friday and was headed for a
fourth consecutive weekly decline pressured by overall strength
in the dollar on prospects of aggressive interest rate hikes by
the U.S. Federal Reserve.
U.S. bond funds saw a surge in outflows in the week to May 11 on concerns over higher inflation readings, which cemented expectations of aggressive rate hikes by the Federal Reserve. According to Refinitiv Lipper data, U.S. bond funds faced capital withdrawals for the 18th straight week, amounting to $10.42 billion, nearly twice the $5.9 billion in disposals in the previous week.
The crown extended gains on
Friday, a day after the Czech central bank said it had
intervened to stop currency weakening, while most other central
European currencies fell on a stronger dollar and ...
Pre-open movers U.S. stock futures traded higher in early pre-market trade after the Dow Jones tumbled 100 points in the previous session. Data on import and export prices for April will be released at 8:30 a.m. ET, while the University of Michigan's consumer sentiment index for May is scheduled for release at 10:00 a.m. ET.
Euro zone bond yields rose back on Friday but were set for big weekly falls as a darkening economic outlook dented rate-hike expectations. Yields in Italian debt, in particular, saw its second biggest drop since 2019. Borrowing costs across the bloc have surged this year as investors braced for a series of rate hikes from the European Central Bank to contain inflation.
As Canada's economy overheats, the Bank of Canada is likely to be among the first of the major central banks to lift interest rates to a more normal setting even as worries persist about record-high levels of household debt, strategists say.
- Global equity funds witnessed a surge in outflows in the week ended May 11, as fears of an economic slowdown and further tightening by major central banks to tame stubborn inflation spooked investors.
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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