* Futures down: Dow 0.5%, S&P 500 0.6%, Nasdaq 0.7% U.S. stock index futures slipped on Monday as investors dialed back bets on the scope of the Federal Reserve rate cuts this year, ahead of key inflation data, policymakers' comments and the third-quarter earnings season that starts later this week.
U.S. exchange-traded funds that invest in dividend-paying stocks have enjoyed a rush of inflows since the Federal Reserve kicked off its rate cutting cycle last month, though a jump in U.S. Treasury yields could slow the deluge of investor funds.
-U.S. exchange-traded funds that invest in dividend-paying stocks have enjoyed a rush of inflows since the Federal Reserve kicked off its rate cutting cycle last month, though a jump in U.S. Treasury yields could slow the deluge of investor funds.
* Strong US jobs growth dispels worries of a recession. * Traders erase bets for a half-point November rate cut. * Dollar scales fresh seven-week high versus yen. * S&P500 futures down 0.3%, STOXX 600 down 0.2% * Brent up further 1% By Alun John and Kevin Buckland.
Sterling dropped versus the euro and the dollar on Monday, with geopolitical risks and central banks' monetary policy path still in focus. The pound recorded its biggest daily fall last week since April after Bank of England Governor Andrew Bailey was quoted as saying the central bank might move more aggressively to lower borrowing costs.
Property sales soared in some Chinese cities during the week-long National Day holiday after a slew of stimulus was unveiled to support the market, but analysts warn it is premature to call it a solid recovery yet as further stimulus may still be needed.
Britain's jobs market showed more signs of cooling in September as pay growth increased at the slowest pace in almost four years, according to a survey likely to reassure the Bank of England as it considers whether to cut borrowing costs again.
The benchmark 10-year U.S. Treasury yield rose to 4% for the first time in two months on Monday after Friday's strong U.S. jobs data pointed to a resilient economy, leaving markets betting against another jumbo rate cut from the Federal Reserve. The 10-year yield was up 1.5 basis points at 4%. It rose 13 bps on Friday, its biggest one-day rise since June 30.
Euro zone government bond yields inched higher on Monday after rising sharply at the end of last week following stronger-than-forecast U.S. labour market data, suggesting that the Federal Reserve could slow its pace of easing.
Japan's Nikkei share average jumped more than 2% on Monday, supported by a weaker yen and Wall Street's gains on Friday after a stronger-than-expected jobs report suggested the world's largest economy remained resilient. The Nikkei closed up 1.8% at 39,332.74 in a widespread rally, after rising 2.39% earlier in the session.
- Goldman Sachs has lowered the odds of the United States slipping into a recession in the next 12 months by five percentage points to 15%, following the latest employment report that showed better-than-expected data. U.S. job gains increased by the most in six months in September and the unemployment rate fell to 4.1%, the Labor Department reported on Friday.
It's a packed week ahead with U.S. inflation data, the start of Q3 earnings, a French budget and possibly a big rate cut from New Zealand. Investors are also on edge as Middle East tensions escalate, while Japan's new Prime Minister Shigeru Ishiba is in the spotlight.
Japanese government bond yields rose on Monday, tracking a rise in their U.S. peers after stronger-than-expected jobs data suggested the world's largest economy was still resilient. The 10-year JGB yield rose 3.5 basis points to its highest since Sept. 3 at 0.913%, while 10-year JGB futures fell 0.45 point to 144.23 yen.
The European Central Bank will probably cut interest rates on Oct 17 as economic growth is weak and this raises the risk that inflation will undershoot its 2% target, French Central Bank Chief Francois Villeroy de Galhau told an Italian newspaper.
The reverberations from a blowout U.S. employment number could threaten an assortment of trades predicated on falling interest rates, if stronger-than-expected growth spurs investors to radically shift views on how much the Federal Reserve will need to cut borrowing costs in the months ahead.
The reverberations from a blowout U.S. employment number could threaten an assortment of trades predicated on falling interest rates, if stronger-than-expected growth spurs investors to radically shift views on how much the Federal Reserve will need to cut borrowing costs in the months ahead.
* Robust jobs numbers could mean smaller Fed cuts this year. * Expectations of lower rates have anchored trades across markets. * Bearish bets on dollar at risk of unwind. By Saqib Iqbal Ahmed, Lewis Krauskopf.
Japan's Nikkei share average surged more than 2% on Monday, supported by a weaker yen and Wall Street's gains on Friday after a stronger-than-expected jobs report suggested the world's largest economy remained resilient.
* US CPI, PPI data due later this week. * Israel bombed targets in Lebanon and Gaza Strip on Sunday. * China cenbank pauses gold purchases for 5th month in Sept. By Ashitha Shivaprasad. Gold prices eased on Monday as bets firmed for a smaller U.S. rate cut in November after strong jobs data, while investors awaited inflation data and comments from Federal Reserve officials for further cues.
China's central bank held back on buying gold for its reserves for a fifth straight month in September, official data showed on Monday, mainly due to a surge in prices for the yellow metal. China's gold holdings stood at 72.8 million troy ounces at the end of last month.
Gold prices eased on Monday as bets firmed for a smaller U.S. rate cut after a surprisingly strong jobs report, while market participants awaited inflation data and comments from Federal Reserve officials for further cues. FUNDAMENTALS. * Spot gold slipped 0.1% to $2,650.79 per ounce, as of 0030 GMT.
A gauge of global stocks declined on Monday and U.S. Treasury yields climbed, with the benchmark 10-year note topping 4%, as investors readjusted their views for the path of interest rates from the Federal Reserve.
Britain's jobs market showed more signs of cooling in September as pay growth increased at the slowest pace in almost four years, according to a survey likely to reassure the Bank of England as it considers whether to cut borrowing costs again.
The European Central Bank will probably cut interest rates on Oct 17 as economic growth is weak and this raises the risk that inflation will undershoot its 2% target, French Central Bank Chief Francois Villeroy de Galhau told an Italian newspaper.
Bank of Japan Governor Kazuo Ueda's efforts to lift rock-bottom borrowing costs face fresh challenges as a yen rebound and the new political leadership's preference for loose monetary policy raise the hurdle for rate hikes.
- A look at the day ahead in Asian markets. Trading in Asia kicks off on Monday with the global macro and market landscape suddenly appearing very different from how it looked on Friday, thanks to a set of U.S. employment figures that not even the most bullish of forecasters expected.
A look at the day ahead in Asian markets. Trading in Asia kicks off on Monday with the global macro and market landscape suddenly appearing very different from how it looked on Friday, thanks to a set of U.S. employment figures that not even the most bullish of forecasters expected.
The past week has been a rollercoaster ride for the U.S. economy. Let?s dive into the top stories of the week. US Economy Adds 254,000 New Jobs In September The U.S. labor market showed signs of robust health as it added 254,000 nonfarm payroll jobs in September, a significant improvement over August?s revised figure of 159,000. Read the full article here.
* Q3 quarterly GDP growth highest in two years. * Sept exports up 10.7% y/y, industrial output up 10.8% * Sept CPI up 2.63% y/y. * Jan-Sept trade surplus at $20.79 bln. By Khanh Vu and Phuong Nguyen.
- U.S. exchange-traded funds that invest in dividend-paying stocks have enjoyed a rush of inflows since the Federal Reserve kicked off its rate cutting cycle last month, though a jump in U.S. Treasury yields could slow the deluge of investor funds.
U.S. exchange-traded funds that invest in dividend-paying stocks have enjoyed a rush of inflows since the Federal Reserve kicked off its rate cutting cycle last month, though a jump in U.S. Treasury yields could slow the deluge of investor funds.
Grants Were Funded Through FHLB Dallas? $1M Native American Housing Opportunities Fund. Representatives from the Federal Home Loan Bank of Dallas, Del Norte Credit Union, Wells Fargo and Southwest Capital Bank awarded $550,000 in Native American Housing Opportunities Fund grants to four New Mexico-based tribal housing organizations. This press release features multimedia.
Municipal investors can expect just shy of $10 billion of new issues from which to choose the first full week of October and the fourth quarter, led by a $1.5 billion taxable general obligation bond offering from New York City. Connecticut is bringing $935 million of general obligation bonds.
* US job growth surges in Sept; unemployment rate falls to 4.1% * Spirit Airlines (SAVE) tanks after report of bankruptcy filing. * Energy sector climbs for the week with Middle East tensions up. * Indexes: Dow up 0.8%, S&P 500 up 0.9%; Nasdaq up 1.2% By Caroline Valetkevitch.
* MOODY'S RATINGS DOWNGRADES SENEGAL TO B1, PLACES RATINGS ON REVIEW FOR DOWNGRADE. * MOODY'S ON SENEGAL: DOWNGRADE IS DRIVEN BY A SIGNIFICANTLY WEAKER FISCAL AND DEBT POSITION THAN WE HAD PREVIOUSLY ASSESSED. * MOODY'S: SENEGAL'S LOCAL & FOREIGN CURRENCY COUNTRY CEILINGS HAVE BEEN LOWERED TO BAA3 AND BA1, RESPECTIVELY.
Speculators' net bearish bets on U.S. 10-year Treasury note
futures rose to a record high in the week ended on Oct. 1, according to Commodity Futures
Trading Commission data released on Friday.
U.S. 10-year Treasury yields climbed to the highest in nearly two months on Friday after a stronger-than-expected September employment report further weakened the odds of big rate cuts at the Federal Reserve's remaining two meetings this year. Nonfarm payrolls increased by 254,000 jobs in September, according to the Labor Department's Friday employment report.
* US job growth surges in Sept; unemployment rate falls to 4.1% * Spirit Airlines (SAVE) tanks after report of bankruptcy filing. * Energy sector climbs for the week with Middle East tensions up. By Caroline Valetkevitch. NEW YORK, Oct 4 - U.S. stocks closed solidly higher on Friday as a stronger-than-expected jobs report reassured investors who had worried the economy may be getting too weak.
Speculators' net bearish bets on U.S. 10-year Treasury note futures rose to their biggest on record in the week ended on Oct. 1, according to Commodity Futures Trading Commission data released on Friday. Net short bets on the benchmark 10-year note futures rose to 1,143,889 contracts from 1,025,278 a week earlier, the data showed.
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 Dentegra Seguros Dentales, S.A.. The outlook of these Credit Ratings is stable.
* Dollar hits seven-week high. * Jobs report cuts bets for another big Fed rate cut. * Safe-haven demand also boosts dollar. By Karen Brettell. The dollar jumped to a seven-week high on Friday and was on track to post its best week since September 2022 after a surprisingly strong jobs report for September led traders to cut bets that the Federal Reserve will make further 50-basis-point rate cuts.
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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