Investors globally are piling into the U.S. dollar and betting on rising volatility ahead of a crucial two weeks in which the United States and Japan elect leaders, three major central banks decide on interest rates and the new UK government presents its budget.
Global analytics software leader, FICO, has announced that Atlantic Bay Mortgage Group is the latest to adopt FICO ? Score 10 T, FICO?s newest, most powerful and predictive score, for its mortgages not sold to Fannie Mae or Freddie Mac. FICO? Score 10 T incorporates trended credit bureau data to reflect consumer credit utilization over time, rather than at a single point in time.
- UBS Fund Management AG now holds a 3% stake in Swiss National Bank, according to an October filing with the country's SIX stock exchange. According to LSEG data, UBS Asset Management, another subsidiary of the UBS group, also has a stake in the Swiss central bank. UBS and the SNB declined to comment.
Global investors channelised large investments into the safety of money market funds in the week through Oct. 23 on caution over the upcoming elections in the United States and Japan, and the shift in the outlook for U.S. interest rates.
* Apple (AAPL) falls after decline in China Q3 sales. * Capri plummets after US judge blocks Tapestry merger. * Centene (CNC) jumps following Q3 profit beat. * Futures up: Dow 0.16%, S&P 500 0.22%, Nasdaq 0.24% By Lisa Pauline Mattackal and Purvi Agarwal.
* Greenback, 10-year Treasury yields retreat from 3-month peaks. * Surprise drop in U.S. jobless claims keeps run of robust data. * Hawkish Fed bets to be tested by monthly payrolls data on Nov. 1. * Mega-cap earnings due next week from Alphabet, Amazon (AMZN), Meta. By Naomi Rovnick and Kevin Buckland.
* The central bank says further rate hikes possible. * Inflation is not slowing down. * Inflationary expectations highest since the start of the year. * Key rate higher than at the start of the conflict in Ukraine. * By Elena Fabrichnaya and Gleb Bryanski.
* Futures up: Dow 0.19%, S&P 500 0.24%, Nasdaq 0.28% U.S. stock index futures edged higher on Friday, with a decline in Treasury yields offering some relief to equities despite a drop in Tesla, although all three major indexes looked poised for a weekly loss.
* Greece must protect downward trajectory of debt, Hatzidakis says. * Any boost to wages should not alter fiscal targets: Hatzidakis. * Greece aims to relinquish Europe's highest debt-to-GDP ratio by 2028. By David Lawder.
Central European currencies
were weaker on Friday, under pressure from a stronger dollar as
traders bet that the U.S. Federal Reserve will slow rate cuts
and amid uncertainty about the upcoming U.S.
A group of funds backed by the world's 20 largest economies aimed at financing climate transition projects needs to be more targeted and operate with greater efficiency to improve the slow pace of disbursements, according to a report on Thursday from the G20's sustainable finance working group.
* Greenback, 10-year Treasury yields retreat from 3-month peaks. * Surprise drop in US jobless claims continues run of robust data. * Hawkish Fed bets to be tested by monthly payrolls data on Nov. 1. * Mega-cap earnings due next week from Alphabet, Amazon (AMZN), Meta. By Naomi Rovnick and Kevin Buckland.
-UBS Global Wealth Management has raised its stance on global equities to "attractive" from "neutral", citing resilient U.S. economic growth, monetary policy easing by major central banks and an artificial intelligence boom.
NatWest (NWG) reported a 26% rise in third-quarter profit and raised its income forecast for 2024, as it grew lending and deposits while sustaining margins despite an uncertain UK economic outlook.
Australia's central bank recorded its fourth straight year of accounting losses in 2024, it said on Friday, as the legacy of its pandemic interventions lingers on its balance sheet.
The European Central Bank may need to ease policy somewhat faster than earlier thought but interest rates do not need to fall to a level where the bank is stimulating economic growth, Latvian central bank chief Martins Kazaks said.
Japanese government bond yields edged lower on Friday, tracking a fall in U.S. Treasury yields, although the declines were capped as the market remained cautious about a close-call domestic election this weekend. The 10-year JGB yield was last down 0.5 basis point at 0.95%, while 10-year JGB futures rose 0.06 points to 144.02 yen.
Japan's industrial output likely rebounded in September, led by a recovery in auto production, but sustained solid growth may be uncertain on lacklustre global demand, a Reuters poll showed on Friday. Industrial output was forecast to rise 1.0% in September from the previous month, the poll of 17 analysts found.
The Bank of Japan is set to maintain ultra-low interest rates next week, and probably signal a less dovish policy outlook due to receding fears of U.S. recession - and the need to keep speculators from pushing down the yen too much. Since ending a decade-long, radical stimulus programme in March, the BOJ has signaled its intention to keep raising interest rates from rock-bottom levels.
The World Bank announced on Thursday a new gender strategy aimed at boosting economic opportunities for women and enabling their participation in the global economy through social protection and access to broadband and capital.
* Greenback, 10-year Treasury yields retreat from 3-month peaks. * Surprise drop in US jobless claims continues run of robust data. * Hawkish Fed bets to be tested by monthly payrolls data on Nov 1. * Mega-cap earnings due next week from Alphabet, Amazon (AMZN), Meta. By Kevin Buckland.
The dollar slipped for a second straight session, as a recent ascent lost steam, but the greenback was still on track for a fourth straight week of gains after data this week kept interest rate expectations for the Federal Reserve in check.
The yen languished near a three-month trough on Friday and was headed for a fourth straight weekly loss, ahead of an election in Japan over the weekend that is likely to complicate the Bank of Japan's policy normalisation plans. In the broader market, the dollar retreated from its recent highs as it tracked U.S. Treasury yields lower, though it remained on course for yet another weekly gain.
* Rise in Tokyo core CPI above forecast. * Inflation excluding fresh food, fuel accelerates to 1.8% By Makiko Yamazaki. Core consumer prices in Japan's capital rose 1.8% in October from a year earlier, data showed on Friday, slipping below the central bank's 2% target for the first time in five months. The Tokyo inflation figures are considered a leading indicator of nationwide trends.
Ministers from the G20 group of largest economies agreed on Thursday that international trade and investments should foster sustainable development and enhance the participation of women in world trade.
Forum Energy Technologies Inc (FET) : * FORUM ENERGY TECHNOLOGIES ANNOUNCES PRICING OF $100 MILLION SENIOR SECURED BOND ISSUANCE Source text for Eikon: Further company coverage:
Home flooring manufacturer Mohawk
Industries (MHK) reported lower third-quarter revenue on Thursday, hurt by pressured pricing and weak demand for its flooring and ceramic products. Shares of the Calhoun, Georgia-based company fell nearly 10% after the bell.
Capital One reported a 1.6% increase in third-quarter profit on Thursday, as elevated interest rates enabled the consumer lender to earn more from customers repaying credit card debt. The company has been shielded from the broader industry-wide weakness in interest income in recent quarters, as rates on credit card debt are significantly higher than those on mortgages and other types of loans.
Forum Energy Technologies, Inc. (FET) announced today that it has finalized the terms of FET?s private offering of USD $100.0 million aggregate principal amount of 10.5% senior secured bonds.
* McDonald's pulls Quarter Pounder from one-fifth of its US restaurants. * Burger King and other chains remove onions from menu items. * Outbreak has sickened nearly 50, killed one. * Onions, beef patties under scrutiny by regulators. * By Brad Brooks.
STAMFORD,?Conn. Third Quarter 2024 Financial Highlights: Q4 2024 Outlook: This outlook is based on?Tronox's (TROX) views on current global economic activity and is subject to changes and impacts associated with the macroeconomic conditions, global supply chain, and inflation-related challenges, among others.
Freddie Mac today posted to its website its Monthly Volume Summary for September 2024, which provides information on Freddie Mac?s mortgage-related portfolios, securities issuance, risk management, delinquencies, debt activities and other investments. Freddie Mac?s mission is to make home possible for families across the nation.
While fundamentals remain strong ? with credit upgrades outpacing downgrades by 3.5 times so far in 2024 ? technical factors have been "less supportive," Principal Asset Management strategists said in a report.
* Central bank committed to 3% inflation target despite current 4.47% rate. * Inflation driven by stronger-than-expected economic activity. * Board members emphasize data-dependence and no guidance on next steps. * Markets predict 92% chance of 50 basis point hike next month.
* Optimism on US outlook broadening, central bank chief says. * Ueda says markets still unstable and volatile. * BOJ must also consider factors driving yen moves, he says. * Finance minister warns about excessive yen volatility. * IMF urges Japan's central bank to hike rates gradually. By Leika Kihara.
* U.S. jobless claim fall in latest week. * U.S. business activity rises in October. * U.S. five-year TIPS auction shows lackluster demand. By Karen Brettell.
* Euro and yen strengthen as dollar pauses after rally. * Fed and ECB rate cut expectations diverge. * U.S. jobless claims fall, supporting slower Fed rate cuts. * ECB policymakers suggest gradual rate cuts amid inflation concerns. * BOJ Governor Ueda links yen fall to U.S. economic optimism. By Chuck Mikolajczak.
* BANK OF CANADA SAYS EFFECTIVE OCT 25, AGGREGATE CASH VALUE AMOUNT OFFERED IN EACH OVERNIGHT REPO OPERATION WILL CHANGE TO A MINIMUM OF C$8 BILLION Source text: https://www.bankofcanada.ca/2024/10/bank-canada-announces-change-overnight-repo-operations/
Brazil's government will make announcements soon that will partly address financial markets' fiscal concerns that are affecting the country's risk premium, central bank chief Roberto Campos Neto said on Thursday.
Federal Home Loan Mortgage Corp (FMCC) : * FREDDIE MAC PRICES APPROXIMATELY $272.2 MILLION SLST SECURITIZATION. * Federal Home Loan Mortgage Corp (FMCC) - PRICES $272.2 MILLION SLST SERIES 2024-2 SECURITIZATION Further company coverage:
Freddie Mac today announced the pricing of the Freddie Mac Seasoned Loans Structured Transaction Trust Series 2024-2, a securitization of approximately $272.2 million including both guaranteed senior and non-guaranteed subordinate securities backed by a pool of seasoned residential mortgage loans.
Bank of Japan Governor Kazuo Ueda said on Thursday optimism over the U.S. economic outlook was broadening but markets remained unstable, offering a mixed view on whether risks to his country's economy were subsiding.
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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