* BOJ braced for volatility post-U.S. election, summary shows. * Some members highlighted yen moves as key to policy outlook. * One called for rate hike after pause to assess U.S. developments. * BOJ kept rates steady at Oct meeting, near-term hike eyed. By Leika Kihara.
Bank of Japan policymakers were divided on how soon they could raise interest rates with some warning of the risk of renewed market volatility after the U.S. presidential election, a summary of opinions at their October meeting showed on Monday.
The dollar started in a cautious mood on Monday as markets braced for U.S. inflation data and a throng of Federal Reserve speakers this week, while the yuan nursed a hangover from Beijing's latest underwhelming stimulus package.
The dollar started in a cautious mood on Monday as markets braced for U.S. inflation data and a throng of Federal Reserve speakers this week, while the yuan nursed a hangover from Beijing's latest underwhelming stimulus package.
As things currently stand, there is no reason for the European Central Bank not to cut interest rates in December but the decision will be based on the data available then, ECB policymaker Robert Holzmann said in remarks published on Sunday.
* Trump has vowed to deport immigrants in U.S. illegally. * Kashkari says the "implications are not entirely clear" Widespread deportation of foreign-born workers from the United States probably would disrupt some businesses, but the impact on inflation and the broad economy would depend on the details, Minneapolis Federal Reserve President Neel Kashkari said on Sunday.
Widespread deportation of foreign-born workers from the United States probably would disrupt some businesses, but the impact on inflation and the broad economy would depend on the details, Minneapolis Federal Reserve President Neel Kashkari said on Sunday.
The Bank of Japan hopes to maintain its 2% inflation target even if climate change causes long-term shocks to future price developments, Governor Kazuo Ueda said on Saturday. But Ueda said the BOJ will "monitor carefully" how the economic impact of climate change, as well as the fallout from government measures to promote the green transition, could affect inflation expectations.
Minneapolis Federal Reserve President Neel Kashkari said he was not concerned about a potential clash between the Fed and President-elect Donald Trump because both major U.S. political parties want inflation lower. "I am not concerned about the dynamics in Washington," following Tuesday's election of Trump, Kashkari said in an interview on Fox News.
Minneapolis Federal Reserve President Neel Kashkari said he was not concerned about a potential clash between the Fed and President-elect Donald Trump because both major U.S. political parties want inflation lower. "I am not concerned about the dynamics in Washington," following Tuesday's election of Trump, Kashkari said in an interview on Fox News.
More than 800 leading Thai economists, including four former governors of the Bank of Thailand, warned on Saturday of political interference in selecting the central bank's board chairman, saying it could damage long-term economic stability.
* FITCH: REVISED SPAIN'S OUTLOOK TO POSITIVE FROM STABLE, WHILE AFFIRMING ITS LONG-TERM FOREIGN-CURRENCY ISSUER DEFAULT RATING AT 'A-' * FITCH: POSITIVE OUTLOOK REFLECTS IMPROVING STRUCTURAL FACTORS THAT INCREASED SPAIN'S GDP POTENTIAL, STRENGTHENED ITS RESILIENCE TO EXTERNAL SHOCKS.
* US 10-year, 30-year yields post largest weekly drop in 2 months. * US 2/10 yield curve hits flattest level in a month. * US one-year inflation expectations inch higher in November. * US rate futures price in one cut in December, two in 2025. By Gertrude Chavez-Dreyfuss, Alden Bentley.
Canada's main stock index slipped on Friday, weighed down by mining and energy shares, as markets trimmed bets for a 50-basis-point interest rate cut by the Bank of Canada next month after domestic jobs data.
* Consumer sentiment rises in November. * Major U.S. indexes notch weekly gains. * China ADRs fall after stimulus measures disappoint. By Chuck Mikolajczak.
* Airbnb (ABNB), Pinterest (PINS) fall after results. * Indexes set for weekly gains. * China ADRs slip after stimulus measures. * Indexes: Dow up 0.63%, S&P 500 up 0.42%, Nasdaq flat. By Chuck Mikolajczak.
* Loonie weakens 0.5% against U.S. dollar. * Canada adds 14,500 jobs in October. * Price of U.S. oil decreases nearly 3% * 10-year yield eases 2.2 basis points. By Fergal Smith. The Canadian dollar weakened against its U.S. counterpart on Friday as oil prices fell and domestic employment data supported bets for another outsized interest rate cut by the Bank of Canada next month.
* Airbnb (ABNB), Pinterest (PINS) fall after results. * Indexes set for weekly gains. * China ADRs slip after stimulus measures. * Indexes: Dow up 0.57%, S&P 500 up 0.34%, Nasdaq down 0.06% By Lisa Pauline Mattackal and Ankika Biswas.
- Major brokerages including J.P.Morgan, Barclays and Goldman Sachs retained their view of a 25-basis-point interest-rate cut by the U.S. Federal Reserve in December, after the central bank cut at a similar rate at its Nov. 6-7 meeting. The Fed's policymakers have begun taking stock of what could become a more complex economic landscape when President-elect Donald Trump takes office next year.
U.S. Treasury yields eased early Friday in the wake of the Federal Reserve's quarter point easing on Thursday, while profit taking on "Trump trade" bets leading up to Tuesday's decisive victory for the former president put a bid under U.S. government debt.
Euro zone bond yields moved lower on Friday, at the end of a busy period in which the market had to digest major central bank meetings, the U.S. election and the collapse of the German government, and which has left them near flat on the week.
Canada's main stock index slipped on Friday, hurt by mining and energy shares, while domestic jobs data slightly trimmed bets for a hefty 50-basis-point interest rate cut by the Bank of Canada next month.
* Airbnb (ABNB), Pinterest (PINS) fall after results. * Indexes set for weekly gains. * China ADRs slip after stimulus measures. * Indexes up: Dow up 0.23%, S&P 500 0.19%, Nasdaq 0.02% By Lisa Pauline Mattackal and Ankika Biswas.
- U.S. consumer sentiment rose to a seven-month high in early November, with a measure of households' expectations for the future climbing to the highest in more than three years, a survey showed on Friday. The University of Michigan's Consumer Sentiment Index climbed to 73.0 this month, the highest since April, from 70.5 in October.
-U.S. consumer sentiment rose to a seven-month high in early November, with a measure of households' expectations for the future climbing to the highest in more than three years, led by brightening outlooks among Republicans, a survey showed on Friday. The University of Michigan's Consumer Sentiment Index climbed to 73.0 this month, the highest since April, from 70.5 in October.
The European Central Bank is pushing Raiffeisen and UniCredit hold some capital as a buffer against potential risks stemming from their Russia businesses, two sources with knowledge of the matter said. The ECB is seeking to address the dangers the two banks still face by operating in a country in which they no longer have effective control of their own activities, one of the people said.
The Bank of England will need to look beyond the temporary inflation boost from last week's budget but must keep a close eye on anything that might add to longer-term price pressures, BoE Chief Economist Huw Pill said on Friday.
Global money market funds attracted sharp inflows in the week to Nov. 6 as investors sought safety ahead of the U.S. presidential election and the Federal Reserve's policy meeting. Investors racked up a massive $127.44 billion worth of global money market funds during the week, which was their largest weekly net purchase since Jan. 3, according to LSEG data.
* Airbnb (ABNB), Pinterest (PINS) fall after results. * Indexes set for sharp weekly gains. * China ADRs slip after stimulus measures. * Futures: Dow up 0.07%, S&P 500 flat, Nasdaq down 0.18% By Lisa Pauline Mattackal and Ankika Biswas.
* Canada's economy adds 14,500 jobs in October. * Wages of permanent employees rise by 4.9% * Unemployment rate stays unchanged at 6.5% * Market sees 58% chance of a 50-basis-point rate cut next. By Promit Mukherjee.
Brazil's consumer prices rose more than expected in October, reinforcing inflationary concerns that led the country's central bank to accelerate its monetary tightening pace this week and signal further rate hikes ahead.
Euro zone bond yields moved lower on Friday, at the end of a busy period in which they had to digest major central bank meetings, the U.S. election and the collapse of the German government, and which has left them near flat on the week.
The international community must avoid exacerbating existing protectionist sentiment, Italy's central bank governor said on Friday, after Donald Trump's election stoked fears of hefty tariffs and trade wars.
* Airbnb (ABNB), Pinterest (PINS) fall after results. * Indexes set for sharp weekly gains. * China ADRs slip after stimulus measures. * Futures down: Dow 0.04%, S&P 500 0.17%, Nasdaq 0.39% By Lisa Pauline Mattackal.
Emerging Europe's currencies
levelled out on Friday, holding on to most of Thursday's gains,
against the backdrop of a U.S. Federal Reserve rate cut and the
dollar pulling back slightly ...
A look at the day ahead in U.S. and global markets from Mike Dolan. Wall Street's S&P500 looks poised to test 6,000 for the first time as the Federal Reserve underscored a post-election stock surge with its second interest rate cut of the year on Thursday and a nod to more.
A look at the day ahead in U.S. and global markets from Mike Dolan Wall Street's S&P500 looks poised to test 6,000 for the first time as the Federal Reserve underscored a post-election stock surge with its second interest rate cut of the year on Thursday and a nod to more.
Sterling was within striking distance of its highest level in more than 2-1/2 years against the euro on Friday as investors bet the European Central Bank would follow a faster monetary easing path than the Bank of England.
Greek industrial output rose by 2.5% year-on-year in September, after an upwardly revised 3.3% increase in August, data from statistics service ELSTAT showed on Friday. A breakdown of index components showed manufacturing production rose 5.2% from the same month in 2023.
The S&P 500 briefly surpassed the 6,000 mark and closed with its biggest weekly percentage gain in a year, as Donald Trump's election victory and a possible Republican Party sweep in Congress fueled expectations for favorable business policies. Also supporting stocks this week was a widely expected interest rate cut of 25 basis points by the Federal Reserve on Thursday.
* Futures up: Dow 0.05%, S&P 500 0.09%, Nasdaq 0.06% Futures tracking the benchmark S&P 500 were trading above the 6,000-point mark on Friday, with equity markets set for an upbeat end to an action-packed week that saw Donald Trump recapture the U.S. presidency and the Federal Reserve cut rates.
Turkish Central Bank Governor Fatih Karahan said on Friday that it was difficult to say when Turkey's rate cut cycle would start and that policy would be determined by the data. Speaking in Ankara, Karahan said the central bank would not take any step to disrupt the disinflation process or undermine confidence in the lira when the rate cut cycle begins.
* China's car sales rise 11.2% in Oct, fastest since Jan. * Domestic champion BYD leads the rise. * Rapid growth buoyed by government subsidies. China's passenger vehicle sales jumped 11.2% in October year-on-year, the second straight monthly rise and the fastest growth since January, led by domestic champion BYD as automakers raced to meet annual sales targets.
* Local govts to raise 10 trln yuan for 'hidden' debt swaps. * Measures seen as stabilising, rather than boosting growth. * Finance ministry says more stimulus measures in store. * Analysts say Beijing may be saving ammo for 2nd Trump term. By Kevin Yao and Ellen Zhang.
Malawi's central bank said on Friday that its Monetary Policy Committee had decided to keep its policy rate unchanged at 26.0%. "The MPC noted that while inflation is expected to ease in 2025, there are still risks that could disrupt this outlook.
China's outstanding property loans totalled 52.9 trillion yuan at the end of the third quarter, down 1% from the previous year, the central bank said on Friday, as authorities battle to arrest a property crisis. Outstanding individual mortgage loans came in at 37.56 trillion yuan, down 2.3% on-year at the end of the third quarter, the bank said.
The United States, Britain and Sweden all cut interest rates this week, even as Donald Trump's U.S. election win introduced a fresh element of uncertainty given the threat of higher tariffs. Seven of the 10 big developed-market central banks tracked by Reuters are in easing mode, two are keeping rates higher for longer and one, outlier Japan, is hiking.
China will allow local governments to issue 6 trillion yuan in bonds to swap for off-balance sheet or "hidden" debt over three years, an official said on Friday.
The United States, Britain and Sweden all cut interest rates this week, even as Donald Trump's U.S. election win introduced a fresh element of uncertainty given the threat of higher tariffs. Seven of the 10 big developed-market central banks tracked by Reuters are in easing mode, two are keeping rates higher for longer and one, outlier Japan, is hiking.
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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