The People?s Bank of China has executed an unscheduled lending operation at significantly lower rates, indicating a potential increase in monetary stimulus to support the economy. What Happened: The PBOC conducted a medium-term lending facility operation, issuing 200 billion yuan in one-year loans at a rate of 2.30%, a 20 basis point decrease from the previous MLF loan, Reuters reported.
By RoboForex Analytical Department. The Japanese yen continues strengthening against the US dollar, with the USD/JPY pair decreasing to 156.31, marking a near 2% appreciation over the past two weeks. Additionally, Japan sold approximately 22 billion USD worth of US bonds in May to fund these interventions.
Shares of Lennar Corp (LEN) declined in premarket trading on Monday, just weeks after the company announced plans to spin off its land assets. Although the company is poised to benefit from its greater exposure to entry level and first-time buyers as the Federal Reserve cuts interest rates, this is already reflected in the stock valuation, according to Goldman Sachs.
The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index moved to the ?Neutral? zone on Thursday. U.S. stocks closed lower on Thursday, with the Dow Jones index falling more than 500 points during the session.
Blackstone Inc. (BX) reportedly ramped up its investment activity to a two-year peak in the second quarter, anticipating the U.S. Federal Reserve?s impending interest rate cuts. The head of the private investment group based in New York informed the Financial Times that inflation appeared to be easing across its portfolio, including its substantial $336 billion property business.
The European Central Bank kept its key interest rates unchanged at its July meeting, aligning with market expectations. The Governing Council did not provide specific guidance on future policy, stating they were ?not pre-committing to a particular rate path,? slightly chilling market expectations which are heavily betting on a September rate cut.
Signs of a cooling U.S. labor market are becoming more evident, increasingly reinforcing investor beliefs that the time has come for the Federal Reserve to lower interest rates. New unemployment benefits rose more than expected last week, while continuing jobless claims reached their highest levels since November 2021, according to the Department of Labor?s report on Tuesday.
Robert Kaplan, the former president of the Federal Reserve?s Dallas branch, in light of recent progress on inflation, predicts a potential interest rate cut in September.
The Federal Reserve?s latest Beige Book, covering late May through early July, showcases ongoing slight to modest economic growth in most Districts. However, the report reveals seven Districts noting growth while five experiencing flat or declining activity, marking an uptick in Districts with stagnant or reduced economic performance compared to the previous period.
Li Auto Inc. (LI) shares are trading marginally lower on Wednesday in the premarket session. Chinese stocks may be under pressure after the country?s softer-than-expected second-quarter GDP growth. This growth rate, lower than the 5.1% predicted by analysts, reflects the slowest pace since the first quarter of 2023.
New York Federal Reserve?President John Williams hinted at a potential interest rate cut in the coming months, suggesting that the Fed might be closer to this decision than previously thought.
The International Monetary Fund revised its projected economic growth for the U.S. in 2024, lowering it to 2.6%. What Happened: The revision is 0.1 percentage points below the agency?s April projection. The IMF cited a slower-than-expected start to the year and an anticipated cooling in the labor market as reasons for slower GDP growth.
Federal Reserve Chairman Jerome Powell said Monday the last three inflation reports have bolstered the Fed?s confidence that inflation is moving toward the 2% target, which is the key condition for policymakers to initiate interest rate cuts.
Rivian Automotive Inc (RIVN) shares are trading lower by 2.7% to $17.63 during Monday?s session. With inflation slowing down, the Federal Reserve is more likely to reduce interest rates sooner rather than later. Reduced borrowing costs could improve Rivian's financial health and make its stock more attractive.
Bilibili Inc (BILI) ? ADR shares are trading lower by 4.9% to $15.88 during Monday?s session amid weakness in Chinese stocks after China reported softer-than-expected?second-quarter?GDP growth. China?s economy grew by only 4.7% from April to June, missing the 5.1% forecast by analysts. Bilibili (BILI), like many other companies, is affected by the overall health of the economy.
The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, with the index remaining in the ?Greed? zone on Friday. U.S. stocks closed higher on Friday, with the Dow Jones index topping the key 40,000 mark during the session.
Nvidia Corporation (NVDA) shares are trading higher Friday as the stock recovers from a dip Thursday following June's inflation data release. The Details: Thursday's June inflation data came in cooler-than-expected, and the Consumer Price Index marked its lowest print since May 2020 with headline CPI inflation slowing from 3.3% in May 2024 to 3% in June 2024.
Inflation may stay elevated beyond people?s expectations, according to economists. What Happened: The Producer Price Index released Friday showed a higher-than-expected increase in June. On an annual basis compared to June 2023, the overall producer basket rose by 2.6%. It attained its highest point since March 2023.
The recent drop in U.S. inflation has sparked discussions about potential interest rate cuts by the U.S.?Federal Reserve Bank. As inflation cools, investors are reconsidering their portfolios, with cannabis stocks emerging as a potential opportunity. Inflation in the U.S. has decreased for three consecutive months, with a 0.1% decline from May to June.
Preliminary estimates from the University of Michigan revealed that U.S. consumer confidence has declined more rapidly than anticipated in July, hitting its lowest level since November 2023. The survey also indicated that inflation expectations have slightly eased, implying that the drop in consumer sentiment is beginning to impact demand and exert downward pressure on prices.
The CNN Money Fear and Greed index showed a decline in overall market sentiment, with the index moving to the ?Neutral? zone on Thursday. U.S. stocks closed mostly lower on Thursday, with the S&P 500 retreating from a record level during the session. On the economic data front, the Consumer Price Index in the U.S. slowed more than expected in June.
The larger-than-expected drop in the June Consumer Price Index inflation rate has fueled market expectations for interest rate cuts by the Federal Reserve. Investors no longer seem to have doubts and are assigning a 91% implied probability that rate cuts will begin as early as September 2024.
Ford Motor Co (F) shares are trading higher by 2.1% to $13.46 during Thursday?s session. With CPI inflation slowing more than expected, it signals to the market that inflation is moving closer to the Federal Reserve?s target of 2%. This increases the likelihood that the Federal Reserve will cut interest rates sooner rather than later.
Rivian Automotive Inc (RIVN) shares are trading higher by 3.1% to $16.88 Thursday afternoon. The cooling inflation increases the likelihood that the Federal Reserve will cut interest rates sooner rather than later. Cheaper borrowing costs would reduce Rivian?s financial expenses, potentially improving its financial health and making its stock more attractive.
Plug Power Inc (PLUG) shares are trading higher by 5.6% to $2.84 during Thursday?s session. The lower-than-expected inflation report increases the likelihood of the Federal Reserve cutting interest rates sooner rather than later. For Plug Power (PLUG), this means potentially lower financing costs for expansion, research and development and other operational needs.
On Wednesday, the U.S. bank regulator Federal Reserve Board and the Office of the Comptroller of the Currency have fined Citigroup Inc $135.6 million for failing to comply with a 2020 enforcement action. The Office of the Comptroller of the Currency has amended its October 7, 2020, Cease and Desist Order against the financial institution.
SoFi Technologies, Inc. (SOFI) shares are trading higher Thursday. The Details: The Consumer Price Index marked its lowest print since May 2020 with headline CPI inflation slowing from 3.3% in May 2024 to 3% in June 2024 on a year-over-year basis. SoFi CEO Anthony Noto explained how rate cuts could benefit the company in a 2023 earnings call.
By RoboForex Analytical Department. The USD/JPY pair has risen to 161.65, with the market cautious ahead of today's US consumer price index release. Earlier this year, the BoJ abandoned its longstanding negative interest rate policy, adjusting the rate to zero. Investors eagerly await the BoJ's meeting in July, where crucial decisions on bond purchases are expected.
The Consumer Price Index in the United States slowed more than expected in June, providing further signs of progress Thursday toward returning to the Federal Reserve?s 2% inflation target and maintaining high expectations for a near-term kickoff of interest rate cuts.
In a recent survey, central bank reserve managers have identified geopolitical conflicts as the main threat to the global economy, despite an overall positive economic outlook.
The all-important consumer price inflation report for June is due Thursday and a bullish market strategist said the data point will likely be a ?reckoning of how people view inflation and the state of the economy.
Federal Reserve Governor Lisa Cook has emphasized the central bank?s readiness to act if the unemployment rate surges, in a recent statement. What Happened: Cook, speaking at an event in Australia, highlighted the Fed?s vigilance regarding the unemployment rate, reported Reuters. ?The labor market is still robust,? Cook said.
Major U.S. indices ended higher on Wednesday, with the Dow Jones Industrial Average increasing by 1.1% to 39,271.36, the S&P 500 gaining nearly 1% to reach 5,633.91, and the tech-heavy Nasdaq climbing 1.2% to 18,647.45. On Wednesday, Federal Reserve Chair Jerome Powell outlined the conditions needed for the central bank to lower rates during his Congressional testimony, emphasizing the necessit...
Federal Reserve Chair?Jerome Powell?painted a very clear picture of what needs to happen before the central bank lowers rates during the second day of testimony in front of Congress. What To Know: Powell kicked off his semiannual testimony before the Senate Banking Committee on Tuesday.
Economists and experts expect June inflation to come in lower than past months when the Consumer Price Index is reported on Thursday. While inflation is dropping in recent reports, consumers continue to see higher costs than in past months and years. What Happened: Wall Street economists expect headline inflation to decline from 3.3% in May to 3.1% in June, year-over-year.
By RoboForex Analytical Department. Gold prices continue to experience an upward trend, reaching 2368 USD per troy ounce, fuelled by growing market anticipation of a potential rate cut by the US Federal Reserve. In his recent testimony before Congress, Federal Reserve chair Jerome Powell highlighted June's improved yet uncertain economic indicators.
Editor?s note: The story has been updated to reflect that the CPI data is due on Thursday. The all-important consumer price inflation report for June ? one of the important reports due before the Federal Reserve?s July 30-31 monetary policy committee meeting ? is expected on Thursday.
Following the latest weaker-than-expected inflation reports, investors are eagerly awaiting June Consumer Price Index report this Thursday to strengthen their expectations of interest rate cuts.
Originally posted at https://volumeleaders.substack.com In the week of July 1 through July 5, 2024, the U.S. financial markets experienced significant developments across various sectors. Economic data released during the week presented a mixed picture. Bond yields declined over the week, reinforcing expectations of a potential rate cut by the Federal Reserve later in the year.
One of the most hawkish investment firms on Wall Street might soon revise its estimates and anticipate an earlier rate cut from the Federal Reserve if June?s new inflation figures confirm another unmistakable signal of a return towards the 2% target. Despite recent benign inflation reports, Bank of America still maintains its call for rate cuts to begin no earlier than December 2024.
U.S. Federal Reserve Chair Jerome Powell is expected to face pressure on interest-rate cuts and bank regulations from members of Congress on Tuesday and Wednesday as he provides his semiannual testimony before both chambers.
Jerome Powell, the chair of the Federal Reserve, will testify before Congress this week amidst signs of slowing inflation and a softening economy. What Happened: With the economy showing signs of slowing growth and employment, Powell is expected to inform lawmakers that the Federal Reserve officials require more evidence of this slowdown before considering a cut in interest rates.
June?s Bureau of Labor Statistics jobs report shows unemployment rising, signaling a continued slowing in the U.S. economy. University of Pennsylvania Wharton professor Jeremy Siegel reacted to the data, recommending the Federal Reserve to cut interest rates in response. What Happened: Siegel appeared on CNBC on Friday afternoon to discuss Friday?s ?weak report.
Costco Wholesale Corporation (COST) has shown significant movement throughout this week, with a strong trading session Friday following key US jobs data. Indexes rose after mixed US job and wage growth data, with the June unemployment rate slightly beating expectations.
Stocks and ETFs gained modestly on Friday morning after the U.S. jobs report for June, which showed that both the unemployment rate, at 4.1%, and the number of unemployed people. at 6.8 million, changed little. Unemployment has risen from the 3.6% unemployment registered in June 2023, when 6 million people were out of work, according to the U.S. Bureau of Labor Statistics.
The official June labor market report for the United States indicates mixed conditions, showing robust employment growth but a slowdown in wage increases, which may support expectations for upcoming interest rate cuts. In June, the U.S. economy added 206,000 new jobs, a reduction from the downwardly revised 218,000 in May, according to data released Friday.
In a recent statement, New York Fed Bank President John Williams acknowledged the Federal Reserve?s ongoing efforts to bring inflation back to its 2% target. What Happened: Williams recognized the Federal Reserve?s progress in controlling inflation.
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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