* Chinese shares drop, yuan hits 16-month highs. * China unexpectedly holds rates steady. * BOJ stands pat on rates, as widely expected. * Focus on Ueda briefing at 0630 GMT. By Stella Qiu.
Tight monetary policy coupled with a penny-pinching fiscal agenda usually results in currency appreciation, and sterling is surging on the prospect. This week's BoE decision to hold off on its second interest rate cut of the year was billed by many central bank watchers as an expected "non-event".
* Mixue, Guming and Auntea sought IPO approvals earlier this year. * Regulatory caution stems from poor performance of listed peers-sources. * Chabaidao dropped nearly 27% on Hong Kong debut in April. * Move highlights tighter scrutiny of offshore Chinese IPOs. By Julie Zhu, Scott Murdoch and Kane Wu.
The yen pared its losses on Friday as the Bank of Japan sounded optimistic about growth and signalled it will be judicious about further policy tightening, while the dollar had its own problems as markets priced in more rapid U.S. rate cuts. It has been a tough week for the yen, with the euro gaining 2.2% to 159.46 as speculators booked profit on recent long yen positions.
As the Federal Reserve kicks off a long-awaited rate cutting cycle, some investors are wary that richly valued U.S. stocks may have already priced in the benefits of easier monetary policy, making it harder for markets to rise much further.
As the Federal Reserve kicks off a long-awaited rate cutting cycle, some investors are wary that richly valued U.S. stocks may have already priced in the benefits of easier monetary policy, making it harder for markets to rise much further.
Shares in India's IIFL Finance jumped about 13% on Friday, after the country's central bank lifted restrictions on the non-banking financial company's gold loan business, removing a key overhang on its financials and stock. Shares rose as much as 13.2% to 560.95 rupees, their highest since late February.
A look at the day ahead in European and global markets from Wayne Cole. It was left to the Bank of Japan to end "central banker week" by doing nothing on rates, though it did bring the yen into sharper focus.
A look at the day ahead in European and global markets from Wayne Cole. It was left to the Bank of Japan to end "central banker week" by doing nothing on rates, though it did bring the yen into sharper focus.
Bank of Japan decided on Friday to maintain its benchmark interest rate at around 0.25%. What Happened: The decision aligns with predictions from a Reuters poll, where economists anticipated another rate hike by the end of the year. Following the announcement, the yen remained nearly unchanged at 142.52 against the dollar.
Asian shares extended their rally on Friday, bathing in the afterglow of an outsized interest rate cut in the United States, while the yen edged higher as the Bank of Japan held rates steady and stayed upbeat on the economy. In China, the central bank kept its benchmark lending rates on hold, countering expectations for a move lower.
Australia's central bank will keep its key policy interest rate unchanged on Tuesday and for the rest of the year amid elevated price pressures, according to economists polled by Reuters, with most expecting the first reduction early next year. Inflation slowed to 3.5% in July but was still above the Reserve Bank of Australia's 2%-3% target range.
The U.S. stock market reached new heights today, following the Federal Reserve?s unexpected decision to cut interest rates for the first time in over four years. This bold move led to a surge in the S&P 500 and Dow Jones indices, reaching all-time highs of 5,700 and 42,000 points respectively.
The yen pared its losses on Friday as the Bank of Japan sounded optimistic about growth and signalled it will be judicious about further policy tightening, while the dollar had its own problems as markets priced in more rapid U.S. rate cuts. It has been a tough week for the yen, with the euro gaining 2.2% to 159.46 as speculators booked profit on recent long yen positions.
Japan's Nikkei share average futures were largely unmoved by the Bank of Japan's widely expected decision to leave policy settings steady on Friday. Nikkei futures remained 2.1% higher as of 0255 GMT, shortly after the BOJ announcement.
The Bank of Japan kept interest rates steady on Friday and maintained its view the economy remained on track for a moderate recovery. In a widely expected move, the central bank left unchanged its overnight call rate target at 0.25% by a unanimous vote. BOJ Governor Kazuo Ueda will hold a news conference at 3:30 p.m. to explain the decision.
The Bank of Japan kept interest rates steady on Friday and maintained its view the economy remained on track for a moderate recovery. In a widely expected move, the central bank left unchanged its overnight call rate target at 0.25% by a unanimous vote. BOJ Governor Kazuo Ueda will hold a news conference at 3:30 p.m. to explain the decision.
Japan's Nikkei share average jumped more than 2% in the morning session on Friday, tracking overnight gains on Wall Street, while traders also kept a wary eye ahead of the Bank of Japan's policy decision later in the day. The tech-heavy Nikkei was up 2.05% at 37,915.87, as of 0156 GMT, with chip-sector stocks rallying in line with U.S. equities' upbeat moves overnight.
China unexpectedly left benchmark lending rates unchanged at the monthly fixing on Friday, confounding market expectations that were primed for a move after the Federal Reserve delivered an outsized interest rate cut earlier this week.
The Bank of Japan kept interest rates steady on Friday and revised up its assessment on consumption, signalling its confidence a solid economic recovery would allow the central bank to raise interest rates again in coming months.
- World stocks hovered near record highs on Friday, underpinned by a big interest rate cut from the Federal Reserve earlier this week, while the yen eased after Bank of Japan Governor Kazuo Ueda tempered market expectations around imminent rate hikes.
Asian shares extended their rally on Friday, bathing in the afterglow of an outsized interest rate cut in the United States, while the yen was jittery ahead of a monetary policy decision in Japan as traders look for clues about future tightening. In China, the central bank held its benchmark lending rates steady, dashing hopes for imminent policy support for its ailing economy.
* BOJ keeps short-term rate steady at 0.25% as expected. * BOJ upgrades view on consumption. * Gov Ueda says domestic economy on track, warns of U.S. risk. * Remarks weaken yen, heighten uncertainty on rate hike timing. By Leika Kihara and Kantaro Komiya.
Japan's 10-year government bond yield was flat on Friday, as the market expects the Bank of Japan to maintain its interest rates at its policy meeting.
Gold prices steadied near record highs on Friday and were poised for a weekly gain, as markets adjusted to the U.S. Federal Reserve's recent super-sized interest rate reduction and signs that further cuts were on the horizon. FUNDAMENTALS. * Spot gold held its ground at $2,586.98 per ounce, as of 0028 GMT, and has climbed about 0.4% for the week so far.
The dollar strengthened against the yen on Friday, hitting its highest level in two weeks, after the Bank of Japan left interest rates unchanged and indicated that it was not in a hurry to hike them again.
Oil prices, which were little changed in early Asian trade on Friday, were on track to end higher for a second straight week following a large cut in U.S. interest rates and declining global stockpiles. Brent futures, which were trading 19 cents or 0.3% lower at $73.69 a barrel at 0027 GMT on Friday, gained 4.3% this week.
The yen remained under pressure on Friday as investors wagered the Bank of Japan would wrap up a policy meeting sounding cautious on further tightening, while the U.S. dollar had its own problems as markets priced in more rapid U.S. rate cuts. It has been a tough week for the yen, with the euro gaining 2.2% to 159.46 as speculators booked profit on recent long yen positions.
Republican presidential candidate Donald Trump said on Thursday the U.S. Federal Reserve's decision to cut interest rates by half of a percentage point was "a political move."
Japan's Nikkei share average rose strongly in early trading on Friday, tracking overnight gains on Wall Street, while traders also kept a wary eye on a Bank of Japan policy announcement later in the day. The tech-heavy Nikkei was up 1.8% at 37,822.84, as of 00:04 GMT, with chip-sector stocks outperforming in line with U.S. equity moves on Thursday.
Japan's five-year government bond yield edged up on Friday, as investors awaited the Bank of Japan's policy decision later in the day. The BOJ is set to keep monetary policy steady, but signal its confidence that solid wage growth and consumption will allow the central bank to raise interest rates again in coming months.
* Aug core CPI up 2.8% yr/yr, matches forecast. * Index lest fuel rises 2.0% yr/yr in August. * Data backs up BOJ view conditions in place for more rate hikes. By Leika Kihara.
Mortgage rates continue to fall toward 6% as the housing market absorbs the Federal Reserve?s 0.5% rate cut on Wednesday, raising demand for refinancing and buying, stated Freddie Mac. The average rate for a 30-year fixed mortgage fell to 6.09% on Thursday, down from 6.2% a week ago and 7.19% a year earlier, according to Freddie Mac?s Primary Market Mortgage Survey.
- A look at the day ahead in Asian markets. A bumper week of central bank meetings that included the U.S. Federal Reserve on Wednesday and the Bank of England on Thursday rounds off on Friday with attention fixed on Asia, and policy decisions from the Bank of Japan and People's Bank of China.
A look at the day ahead in Asian markets. A bumper week of central bank meetings that included the U.S. Federal Reserve on Wednesday and the Bank of England on Thursday rounds off on Friday with attention fixed on Asia, and policy decisions from the Bank of Japan and People's Bank of China.
Big global investors are on alert for wild market swings after a jumbo U.S. rate cut sparked confusion over whether the world's dominant economy is set to boom or face recession, muddling prospects for stocks, bonds and currencies worldwide.
AM Best has affirmed the Financial Strength Rating of B+, the Long-Term Issuer Credit Rating of ?bbb-? and the Mexico National Scale Rating of ?aa-.MX? of Qu?litas Compa??a de Seguros S.A. de C.V.. The outlook of these Credit Ratings is stable.
* World stocks push higher after bumper Fed cut. * Fed move seems to point to soft landing. * Risk appetite weighs on Treasury bonds. * Graphic: World FX rates http://tmsnrt.rs/2egbfVh. By Isla Binnie.
* BOJ concludes 2-day meeting, decision expected 0300-0430 GMT. * Board widely expected to keep short-term rate steady at 0.25% * Focus on any hints from Ueda on next rate hike timing. * Governor Ueda likely to brief media 0630 GMT. By Leika Kihara.
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.
Log In Required
Line of Credit Log In Required
Publication Date