The dollar tumbled more than 1.5% to a three-month low against the yen on Thursday, after comments by Fed Chair Jerome Powell that U.S. rate hikes could be scaled back "as soon as December" though the euro failed to climb past a major resistance level.
* Dollar tumbles as Powell says Fed to go slow. * S.African rand down after panel findings against president. * China's factory activity shrinks amid COVID curbs - Caixin PMI. * Polish manufacturing slump drags on -PMI. * Turkish factory activity contracts for 9th straight month - PMI. By Bansari Mayur Kamdar.
Euro zone yields dropped on Thursday, taking cues from moves in U.S. Treasuries, after Federal Reserve chair Jerome Powell signalled the central bank could slow its pace of policy tightening as soon as its December meeting.
European shares scaled over three-month highs on Thursday, cheered by U.S. Federal Reserve Chair Jerome Powell signalling smaller interest rate hikes ahead, and China softening its tone on strict COVID-19 rules. The pan-European STOXX 600 index rose 0.9% by 0810 GMT, after rising 6.8% in November, its best month since July.
* This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine. The rouble weakened to a near seven-week low against the yuan on Thursday and also edged lower versus the dollar, as markets reacted to Federal Reserve comments on interest rates and the Russian currency was squeezed by the end of a favourable tax payment period.
- Investors turned modestly bullish on currencies of South Korea, Malaysia and Thailand, supported by prospects of China's reopening, a Reuters poll found, while bearish positions on other Asian currencies hovered at multi-month lows amid a weaker greenback.
STOCKS: The benchmark BSE Sensex rose 313.55 points, or 0.5%, to 63,413.2, while the broader NSE index gained 84.05 points, or 0.45%, to 18,842.4, tracking a global rally after Federal Reserve Chair Jerome Powell hinted at slowing the pace of interest rate hikes "as soon as December."
Foreign investors were massive buyers of Japanese stocks in the week ended Nov. 25, as minutes from the Federal Reserve's latest meeting boosted hopes that the U.S. central bank would slow the pace of its interest rate hikes. Foreigners poured a net 987 billion yen into Japanese equities last week, marking their biggest weekly net buying since July 8, data from exchanges showed.
Japan's Nikkei index snapped a four-session losing streak on Thursday after Wall Street rose sharply overnight as U.S. Federal Reserve Chair Jerome Powell struck a more dovish tone than the market had expected.
China's $17 trillion economy is headed for one of its worst showings this year in almost half a century, but its central bank has limited options in its armoury for providing policy support as it would want to avoid stoking capital flight.
The following are the top stories on the New York Times business pages. - Jerome H. Powell, the Federal Reserve chair, signaled on Wednesday that the central bank could slow its rapid pace of interest rate increases at its December meeting while making clear that borrowing costs have farther to climb as policymakers remain concerned about a sustained bout of inflation.
Russia's manufacturing sector expanded at its fastest pace in almost six years in November thanks to an increase in output and new orders, a business survey showed on Thursday, rebounding from a dip towards contraction last month.
Bank of Japan board member Asahi Noguchi said on Thursday the central bank could "pre-emptively" withdraw monetary stimulus if trend inflation, which takes into account wage and services prices, overshoots expectations and stays above its 2% target.
Asian equities jumped on Thursday, while the dollar slid as investors poured into risky assets after Federal Reserve Chair Jerome Powell opened the door to a slowdown in the pace of monetary tightening. In an eagerly-awaited speech, Powell said the central bank could scale back the pace of its interest rate hikes "as soon as December," but cautioned the fight against inflation was far from over.
The world must cooperate to tackle the greatest challenges of climate change, terrorism, and pandemics, Prime Minister Narendra Modi said on Thursday as India began its year-long presidency of the Group of 20.
Japan's government bond futures rose to a one-week high on Thursday after Federal Reserve Chair Jerome Powell said the U.S. central bank could slow the pace of rate hikes as soon as this month. Benchmark 10-year JGB futures rose 0.36 yen to 149.08, hitting its highest since Nov. 25, with a trading volume of 14,120 lots.
- A rally in U.S. stocks and bonds powered ahead after a speech by Federal Reserve Chairman Jerome Powell on Wednesday, but some investors believe a looming recession could cap gains in both asset classes. Though asset prices have been battered by the Fed's rate rises this year, momentum has been on the side of the bulls in recent weeks.
* Focus on non-farm payrolls data due on Friday. * Traders see 91% chance of 50 bps rate hike in December. By Ashitha Shivaprasad. Gold prices hit a two-week high on Thursday, supported by a weaker dollar after U.S. Federal Reserve Chair Jerome Powell's speech sparked expectations of smaller interest rate hikes.
Indian shares rose to new highs on Thursday, tracking gains in global equities after Federal Reserve Chair Jerome Powell hinted at slowing the pace of interest rate hikes "as soon as December."
China's yuan hit a two-week high against the U.S. dollar on Thursday, which came under pressure after the Federal Reserve Chair Jerome Powell said U.S. rate hikes could be scaled back "as soon as December".
The following factors could affect Italian markets on Thursday. Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. For a complete list of diary events in Italy please click on . ECONOMY. S&P Global releases November PMI manufacturing data. ISTAT releases October unemployment rate data. Transport Ministry releases November car sales data.
Indian government bond yields declined on Thursday, with the benchmark yield easing back to 7.25% levels, tracking a similar move in U.S. peers, after U.S. Federal Reserve Chair Jerome Powell struck a more dovish tone than the market expected. The benchmark 10-year yield was at 7.2483% as of 10:00 a.m. IST.
The dollar tumbled to a three-month low versus the yen on Thursday as traders focused on comments by Federal Reserve Chair Jerome Powell that interest rate hikes could be scaled back "as soon as December."
* China's private survey shows continued PMI contraction. * Factory activity shrinks in Japan, South Korea. * Surveys highlight darkening outlook for Asia next year. By Leika Kihara. Factory output slumped widely across Asia in November as slowing global demand and uncertainty over the fallout from China's strict COVID-19 lockdowns weighed on business sentiment, private surveys showed on Thursday.
The Indian rupee is expected to open higher against the dollar on Thursday after the U.S. Federal Reserve Chair Jerome Powell's comments were viewed as dovish. The rupee is tipped at around 81.20 per U.S. dollar in early trades, compared with 81.4225 in the previous session.
- Federal Reserve Chair Jerome Powell on Wednesday said it was time to slow the pace of coming interest rate hikes while also signaling a protracted economic adjustment to a world where borrowing costs will remain high, inflation comes down slowly and the United States remains chronically short of workers.
- Federal Reserve Chair Jerome Powell on Wednesday said it was time to slow the pace of coming interest rate hikes while also signaling a protracted economic adjustment to a world where borrowing costs will remain high, inflation comes down slowly and the United States remains chronically short of workers.
Japan's manufacturing activity contracted for the first time in nearly two years in November, a private survey showed, as a slump in demand and output deepened driven largely by a slowdown in the global economy and still-elevated inflationary pressures.
Japan's Nikkei index rose on Thursday, tracking Wall Street's sharp gains overnight after U.S. Federal Reserve Chair Jerome Powell struck a more dovish tone than the market expected. By 0150 GMT, the Nikkei share average was up 1.1% at 28,274.82, set to snap four straight sessions of losses.
Wall Street equities made little progress in Thursday's choppy session as investors digested economic data after a big rally in the previous session from U.S. Federal Reserve signals that it would slow its interest rate hiking pace.
Asian equities jumped on Thursday, while the dollar slid as investors poured into risky assets after Federal Reserve Chair Jerome Powell opened the door to a slowdown in the pace of monetary tightening.
Oil prices rose about a dollar per barrel on Thursday after top crude importer China eased COVID curbs in two major cities, while the U.S. dollar slumped on the view that the Federal Reserve might slow down on interest-rate hikes. The shift in China's zero-COVID strategy raised optimism about a recovery in oil demand there. Brent crude was up 90 cents, or 1%, at $87.87 a barrel by 1:05 pm EDT.
* BOJ could dial back stimulus if trend inflation overshoots. * Near-term exit from easy policy unlikely - BOJ Noguchi. * Timing of exit from easy policy will be data-dependent - Noguchi. * Remarks by dovish board member highlight shift in policy focus. By Leika Kihara.
Bank of Japan board member Asahi Noguchi said on Thursday the central bank must keep interest rates ultra-low as the country has yet to achieve the bank's 2% inflation target in a sustainable fashion. "While not as much as other countries, Japan's consumer prices have risen sharply.
China's factory activity shrank in November as widespread COVID-19 curbs disrupted manufacturers' output, a private sector survey showed on Thursday, weighing on employment and economic growth in the fourth quarter.
China's factory activity shrank in November as widespread COVID-19 curbs disrupted manufacturers' output, a private sector survey showed on Thursday, weighing on employment and economic growth in the fourth quarter.
The U.S. dollar dipped to 16-week lows against a basket of major currencies on Thursday after data showed that U.S. consumer spending increased solidly in October, while inflation moderated, adding to expectations that the Federal Reserve is closer to reaching a peak in interest rates.
Gold prices climbed a two-week high in early Asian trade on Thursday, after U.S. Federal Reserve Chair Jerome Powell's speech reinforced expectations of smaller interest rate hikes ahead. FUNDAMENTALS. * Spot gold was up 0.4% to $1,775.77 per ounce, as of 0039 GMT, having hit its highest level since Nov. 16.
The dollar tumbled to a three-month low versus the yen on Thursday as traders keyed on comments by Federal Reserve Chair Jerome Powell that interest rate hikes could be scaled back "as soon as December."
Japan's manufacturing activity contracted for the first time in nearly two years in November, a private survey showed, as a slump in demand and output deepened driven largely by a slowdown in the global economy and still-elevated inflationary pressures.
Top Federal Reserve officials are showing no appetite for slowing the pace of the central bank's balance sheet reduction, pushing back on outside observers' assertions that money market conditions will bring an early end to the program.
Wall Street equities closed sharply higher on Wednesday while U.S. Treasury yields declined and the dollar sank after Federal Reserve Chair Jerome Powell said the central bank could slow the pace of interest rate hikes "as soon as December," even as he cautioned that inflation was still too high.
Federal National Mortgage Association (FNMA) : * FANNIE MAE'S GUARANTY BOOK OF BUSINESS INCREASED AT A COMPOUND ANNUALIZED RATE OF 1.2% IN OCTOBER. * CONVENTIONAL SINGLE-FAMILY SERIOUS DELINQUENCY RATE DECREASED 2 BASIS POINTS TO 0.67% IN OCTOBER. * MULTIFAMILY SERIOUS DELINQUENCY RATE INCREASED 1 BASIS POINT TO 0.27% IN OCTOBER.
U.S. Treasury yields
retreated on Wednesday after trading higher for most of the
session after Federal Reserve Chair Jerome Powell struck a more
dovish tone than the market expected, saying the U.S.
Most Latin American currencies and
stock indexes jumped on Wednesday as commodity prices rose and
dollar slid after the Federal Reserve chair Jerome Powell
signaled slower pace of interest-rate hikes ...
* Canadian dollar strengthens 1% against the greenback. * Trades in a range of 1.3437 to 1.3593. * Price of U.S. oil settles 3% higher. * Canadian bond yields ease across much of curve. By Fergal Smith.
U.S. Treasury yields
retreated across the board on Wednesday after trading higher for
most of the session after Federal Reserve Chair Jerome Powell
struck a more dovish tone than the market expected, ...
- The Federal Reserve has been "pretty aggressive" already with its interest rate hikes and won't try to crash the economy with further sharp increases just to get inflation under control faster, Fed Chair Jerome Powell said on Wednesday.
- Federal Reserve Chair Jerome Powell on Wednesday said the U.S. central bank should use a "risk management" approach to raising rates, going "slower and feeling our way a little bit" to the right level of restrictive policy, and not loosen policy too early. "Cutting rates is not something we want to do soon," Powell said at the Brookings Institution in Washington.
- U.S. firms flashed mixed signals on the strength of the economy, inflation and labor demand in the month and a half before the Thanksgiving holiday and were more downbeat about the outlook, a Federal Reserve report showed on Wednesday, as the central bank struggles to bring down inflation without causing a recession.
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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