* Muted initial market reaction gives way to sharper moves. * Small cap stocks up sharply. * Bond yields spike. By Saqib Iqbal Ahmed, Suzanne McGee and Carolina Mandl. An initial muted market reaction following the Federal Reserve's first rate cut in four years gave way to a surge in U.S. stocks as uncertainty ebbed and investors digested the implications of easing monetary policy.
Brazil's real outperformed its
regional peers on Thursday after the central bank kicked off an
interest rate-hiking cycle and signaled more increases, while
key indexes for Latin American assets ...
Canada's main stock index climbed to a record high on Thursday, boosted by technology stocks, as investors cheered an outsized interest-rate cut by the U.S. Federal Reserve.
* Bullion rose to record high of $2,599.92 on Wednesday. * Silver gains over 3% * UBS: greater gold ETF demand to gather pace in coming months. By Anushree Mukherjee.
* S&P 500, Dow hit record highs. * BofA expects Fed to go for 75-bp cut in Q4. * US big banks rise after Fed's jumbo rate cut. * Weekly jobless claims stand at 219,000. * Indexes up: Dow 0.94%, S&P 500 1.29%, Nasdaq 2.15% By Johann M Cherian and Purvi Agarwal.
IIFL Finance said on Thursday that India's central bank has lifted the restrictions on the company's gold loan business, in what would be the removal of a key overhang on the lender. The Reserve Bank of India in March ordered the company to stop offering gold loans, citing supervisory concerns in its gold loans portfolio.
U.S. existing home sales fell more than expected in August as house prices remained elevated despite a continued improvement in supply. Home sales fell 2.5% last month to a seasonally adjusted annual rate of 3.86 million units, the National Association of Realtors said on Thursday. Economists polled by Reuters had forecast home resales falling to a rate of 3.90 million units.
U.S. existing home sales fell more than expected in August as house prices remained elevated despite a continued improvement in supply. Home sales fell 2.5% last month to a seasonally adjusted annual rate of 3.86 million units, the National Association of Realtors said on Thursday. Economists polled by Reuters had forecast home resales falling to a rate of 3.90 million units.
The Brazilian real opened higher on Thursday a day after the central bank raised its benchmark interest rate, diverging from the U.S. Federal Reserve, which began its anticipated easing cycle. The currency rose more than 1% against the U.S. dollar early in the session before paring gains, but still extending its recent strengthening trend.
* Weekly jobless claims fall 12,000 to 219,000. * Continuing claims drop 14,000 to 1.829 million. * Existing home sales decrease 2.5% in August. * Median house price rises 3.1% to $416,700 from year ago. By Lucia Mutikani.
Canada's main stock index opened higher on Thursday tracking a jump in global markets after the U.S. Federal Reserve slashed interest rates by an oversized 50 basis points. At 9:34 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 239.16 points, or 1.01%, at 23831.76.
Wall Street's main indexes jumped at the open on Thursday, with the S&P 500 notching an intraday record high after the Federal Reserve kicked off its easing cycle with half-a-percentage point reduction and forecast more cuts were on the horizon.
The U.S. current account deficit widened sharply in the second quarter, reaching its highest level in more than two years amid a surge in imports of goods.
The Bank of England kept interest rates at 5.0% on Thursday, saying it would be careful about future cuts, and also held off from running down its bond holdings at a faster pace, avoiding extra budget strains for finance minister Rachel Reeves. Economists polled by Reuters had forecast a 7-2 vote for a hold after last month's tight 5-4 decision to cut rates from their previous 16-year high.
* BofA expects Fed to go for 75-bp cut in Q4. * US big banks rise after Fed's jumbo rate cut. * Weekly jobless claims stand at 219,000. * Futures up: Dow 1.13%, S&P 500 1.58%, Nasdaq 2.14% By Johann M Cherian and Purvi Agarwal.
FactSet Research Systems (FDS) reported a higher-than-expected fourth-quarter profit on Thursday, as more traders signed up for its financial data and analytics in anticipation of the U.S. Federal Reserve kicking off interest rate cuts. Shares rose around 3.2% to $461.01 before the bell.
The U.S. Federal Reserve has joined a global easing cycle with a larger-than-anticipated half-point interest rate reduction. Seven of the 10 big developed-market central banks tracked by Reuters have now started easing policy. Here's where major rate-setters stand and what traders expect next. 1/ SWITZERLAND.
- Traders on Thursday added to bets the U.S. Federal Reserve's next rate cut will be smaller than the one it delivered on Wednesday, after economic data showed an unexpected drop in unemployment insurance claims.
The U.S. Federal Reserve has joined a global easing cycle with a larger-than-anticipated half-point interest rate reduction. Seven of the 10 big developed-market central banks tracked by Reuters have now started easing policy. Here's where major rate-setters stand and what traders expect next. 1/ SWITZERLAND.
The number of Americans filing new applications for unemployment benefits dropped to a four-month low last week, pointing to solid job growth in September and offering confirmation that the economy continued to expand in the third quarter.
The number of Americans filing new applications for unemployment benefits unexpectedly fell last week, suggesting job growth picked up in September. Initial claims for state unemployment benefits dropped 12,000 last week to a seasonally adjusted 219,000 for the week ended Sept. 14, the Labor Department said on Thursday.
* World stocks push for record high after bumper Fed cut. * Commodities cheer hopes of economic lift. * Bond markets take it all in their stride. * Sterling rallies has BoE holds rates, continues bond run down. * Graphic: World FX rates http://tmsnrt.rs/2egbfVh. By Marc Jones.
The Brazilian real opened higher on Thursday after the nation's central bank raised its benchmark interest rate a day earlier, diverging from the U.S. Federal Reserve, which kicked off its anticipated easing cycle. The currency rose more than 1% against the U.S. dollar early in the session, extending its recent strengthening trend.
U.S.-listed crypto shares jumped before the open on Thursday after a half-percentage point interest rate cut sparked a flight into risky assets, adding to the momentum of an industry that has already secured some big wins this year. The move could revive interest in bitcoin, the most popular cryptocurrency, which often sways the entire sector as investors chase higher returns and dump safe-havens.
- Shares of major U.S. homebuilders surged in premarket trade on Thursday, buoyed by expectations of higher demand due to reduced borrowing costs after the Federal Reserve unveiled an oversized interest rate cut. D.R. Horton Lennar, PulteGroup and Toll Brothers rose roughly 3% before the bell.
Even though the Bank of Canada takes rate decisions on a consensus basis, this does not mean governing council members all share the same view on the path for rates, deputy governor Nicolas Vincent said on Thursday. The six-member council, which includes Governor Tiff Macklem, announces interest rates eight times a year.
* Prospect of further dollar weakness. * Dollar index hit lowest in more than a year. * Domestic data supports Australian, New Zealand currencies. * Sterling jumps after BoE. By Stefano Rebaudo.
* BoE votes 8-1 to keep key rate at 5%, as expected. * BoE to cut bond holdings by a further 100 billion pounds. * Bailey: Rates must not fall "too fast or by too much" * BoE sees UK CPI at 2.5% by year-end, less than before. By Andy Bruce and David Milliken.
* BofA expects Fed to go for 75-bp cut in Q4. * US big banks rise after Fed's jumbo rate cut. * Futures up: Dow 1.1%, S&P 500 1.6%, Nasdaq 2.07% By Johann M Cherian and Purvi Agarwal.
Futures for Canada's main stock index jumped nearly 2% on Thursday, mirroring gains in U.S. equity futures, after the U.S. Federal Reserve's outsized interest-rate cut raised hopes of a soft landing for the U.S. economy. The futures on the S&P/TSX index were up 1.9% at 7:26 a.m. ET.
STOCKS: The benchmark BSE Sensex was up 0.4% at 83,106, while the broader NSE index advanced 0.3% to 25,449, buoyed by expectations of a rise in foreign inflows after the U.S. Federal Reserve started its monetary easing cycle with a large half-percentage-point rate reduction.
UniCredit, Italy's second-largest bank, has taken a 9% stake in Germany's Commerzbank and is seeking permission to potentially raise this to 29.9%, sources told Reuters, while saying it would be open to a full takeover bid. For UniCredit to raise its Commerzbank stake above 10% will, however, need approval from the European Central Bank, the supervisor of the euro zone's biggest banks.
UniCredit, Italy's second-largest bank, has taken a 9% stake in Germany's Commerzbank and is seeking permission to potentially raise this to 29.9%, sources told Reuters, while saying it would be open to a full takeover bid. For UniCredit to raise its Commerzbank stake above 10% will, however, need approval from the European Central Bank, the supervisor of the euro zone's biggest banks.
12 noon BANK OF ENGLAND MONETARY POLICY SUMMARY, SEPTEMBER 2024. The Monetary Policy Committee sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. MPC adopts a medium-term and forward-looking approach to determine the monetary. stance required to achieve the inflation target sustainably.
12 noon BANK OF ENGLAND MONETARY POLICY SUMMARY, SEPTEMBER 2024. The Monetary Policy Committee sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. MPC adopts a medium-term and forward-looking approach to determine the monetary. stance required to achieve the inflation target sustainably.
The Bank of England kept interest rates at 5.0% on Thursday, saying it would be careful about future cuts, and also held off from running down its bond holdings at a faster pace, avoiding extra budget strains for finance minister Rachel Reeves. The Monetary Policy Committee voted 8-1 to keep rates on hold.
* Prospect of further dollar weakness. * Dollar index hit lowest in more than a year. * Domestic data supports Australian, New Zealand currencies. By Stefano Rebaudo. The U.S. dollar dropped on Thursday after the Federal Reserve cut its interest rate by 50 basis points and revised its monetary policy outlook, with the Australian dollar and the Norwegian crown outperforming their peers.
Euro zone government bond yields remained steady on Thursday, a day after the Federal Reserve kicked off its easing cycle with a larger than usual interest rate cut but signalled policy moves would be measured through the end of the year. The Fed lowered its key interest rate by 50 basis points to the 4.75%-5.00% range, when most analysts saw a quarter-point cut as the most likely outcome.
STOCKS: The benchmark BSE Sensex was up 0.4% at 83,106, while the broader NSE index advanced 0.3% to 25,449, buoyed by expectations of a rise in foreign inflows after the U.S. Federal Reserve started its monetary easing cycle with a large half-percentage-point rate reduction.
A look at the day ahead in U.S. and global markets from Mike Dolan. After a typical skittish first-day reaction, world markets are on Thursday embracing the new Federal Reserve stance as insurance on the holy grail of a soft economic landing.
A look at the day ahead in U.S. and global markets from Mike Dolan. After a typical skittish first-day reaction, world markets are on Thursday embracing the new Federal Reserve stance as insurance on the holy grail of a soft economic landing.
Copper prices hit their highest in two months and aluminium the highest in three on Thursday after the long-awaited U.S. Federal Reserve's interest rate cut weakened the dollar and gave support to growth-dependent metals. Three-month copper on the London Metal Exchange rose 2.0% to $9,583 per metric ton by 0856 GMT after hitting $9,586.5, its highest since July 18.
-The S&P 500 surged to intra-day record highs on Thursday, the day after the Federal Reserve cut interest rates by 50 basis points and indicated more rate cuts were on the horizon.
-The S&P 500 surged to a record high close on Thursday, the day after the Federal Reserve cut interest rates by 50 basis points and indicated more rate cuts were on the horizon. The blue chip Dow Jones Industrial Average also registered a record closing high, ending the session above 42,000 for the first time.
* Futures up: Dow 0.96%, S&P 500 1.34%, Nasdaq 1.82% U.S. stock index futures surged on Thursday, with those tracking the Nasdaq climbing nearly 2% following the Federal Reserve's move to start its easing cycle with a half a percentage point cut, aiding a soft landing for the world's biggest economy.
A big interest rate cut from the U.S. Federal Reserve on Wednesday raised bets on further policy easing at the European Central Bank in October but this is still not the most likely outcome given different economic realities.
* Bullion rose to record high of $2,599.92 on Wednesday. * Silver gains over 3% * Silver market to remain in deficit over coming years - UBS. * Platinum, palladium up more than 2% By Ashitha Shivaprasad.
- The Bank of England looks set to keep interest rates on hold on Thursday as it awaits signs that inflation risks are quashed, putting the focus instead on a decision about bond sales that could feed into Finance Minister Rachel Reeves' first budget.
* Hong Kong central bank cuts interest rate, tracks Fed move. * China expected to trim main policy rate and lending benchmarks. * Gulf central banks cut key interest rates. * Pakistan benchmark share index hits all-time high. * Brazil central bank raises rates by 25 bps. By Ankika Biswas.
Norway's central bank held its policy interest rate unchanged at a 16-year high of 4.50% on Thursday, as widely expected, and said any cuts must wait until the first quarter of next year, boosting the crown currency. "The committee judges that a restrictive monetary policy is still needed to bring inflation down to target within a reasonable time horizon," the central bank said in a statement.
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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