Brazil's incoming central bank governor Gabriel Galipolo said on Friday that the monetary authority does not aim to target or defend any specific exchange rate level, intervening only in cases of "market dysfunction".
Canada's main stock index hit a record high on Friday after data showed the economy grew at an annualized rate of 1% in the third quarter, raising expectations for a larger interest-rate cut by the Bank of Canada next month. The S&P/TSX composite index was up 83.72 points, or 0.33%, at 25,627.24 and was on track to hit its fifth straight monthly gain.
The yen jumped to a six-week high against the dollar on Friday after faster-than-expected inflation in Tokyo supported bets for a Bank of Japan interest rate hike next month. Tokyo's core consumer price index, which excludes volatile fresh food costs, rose 2.2% year-on-year in November from a year earlier, up from 1.8% last month and beating forecasts for a 2.1% gain.
The coming week will give investors a fresh view into the health of the U.S. economy with the release of a closely watched employment report that could help determine the trajectory of interest rates in the months ahead. Stocks are heading into December with the benchmark S&P 500 near record highs following an over 25% year-to-date gain.
* US nonfarm payrolls report for Nov due on Dec 6. * Market bets for Dec Fed meeting lean to 25 bp cut. * S&P 500 hovers at records, P/E ratio at over 3-yr highs. By Lewis Krauskopf.
Canada's main stock index opened flat on Friday in thin trading volumes, while investors assessed gross domestic product data that reinforced expectations of the Bank of Canada implementing an interest-rate cut next month. At 9:31 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 10.68 points, or 0.04%, at 25,532.84.
U.S. Treasury yields dropped amid thin trading during the holiday-shortened market session on Friday, extending a weekly bond rally spurred by optimism about the new U.S. Treasury secretary and some respite from inflation concerns.
Canada's economy grew as expected at an annualized rate of 1% in the third quarter, according to data released on Friday, helped by household and government spending and partly offset by lower business investments and exports. For the month of September, gross domestic product increased 0.1%, slower than expected, Statistics Canada data showed. Market reaction: CAD/ LINK: COMMENTS.
-Uncertainties around U.S. policies may slow global economic growth modestly in 2025, according to major brokerages. World economies and equity markets have had a robust year, with global growth expected to average 3.1% this year, a Reuters poll published in October showed.
-China-based property developer Kaisa said on Friday it would hold an extraordinary general meeting of its shareholders on Dec. 18 to seek various approvals in relation to its $12.27 billion debt restructuring agreement. The developer has been working to restructure its debt since defaulting on $12 billion in offshore bonds in late 2021.
Canada's economy grew at an annualized rate of just 1% in the third quarter, less than what the Bank of Canada had predicted, prompting currency markets to boost bets for a jumbo rate cut next month. Friday's data from Statistics Canada were in line with market expectations but less than the 1.5% forecast by the BoC, which has in recent months fretted about sluggish growth.
* * On a monthly basis, GDP grew by 0.1% in September. * Growth seen at 0.1% in October, Statscan said. Canada's economy grew as expected at an annualized rate of 1% in the third quarter, according to data released on Friday, helped by household and government spending and partly offset by lower business investments and exports.
-Major brokerages reiterated their view of a 25-basis-point interest-rate cut by the U.S. Federal Reserve in December after data on Wednesday showed the personal consumption expenditures price index rose in-line with market expectations. Data showed PCE climbed 0.2% in October on a monthly basis, and grew 2.3% annually, matching market expectations.
- U.S. investors poured money into equity funds in the week ended Nov. 27, buoyed by the naming of officials for the new Trump administration and a fall in Treasury yields, which alleviated concerns about the prospects for growth stocks.
U.S. investors poured money into equity funds in the week ended Nov. 27, buoyed by the naming of officials for the new Trump administration and a fall in Treasury yields, which alleviated concerns about the prospects for growth stocks.
Brazil's gross public sector debt rose to 78.6% of gross domestic product in October from 78.2% in September, central bank data showed on Friday, resuming an upward trend despite a primary budget surplus for the month.
Manufacturing production in Chile was up 3.0% in October from a year earlier, the country's INE statistics agency said on Friday. Copper output in the Andean nation, the world's largest producer of the red metal, increased 6.7% year-on-year in the period to 492,804 metric tons, the agency added.
The latest round of U.S. sanctions on Russian financial institutions caused volatility in the Russian forex market, but the rouble's exchange rate will be driven by fundamentals in the medium and long term, the central bank said on Friday. "As demonstrated by previous episodes of sanctions, infrastructure problems arise, complicating export and import flows.
- Global investors stepped up purchases in equity funds in the week ended Nov. 27, encouraged by prospects of robust U.S. growth under the Trump administration and boosted by cooling treasury yields. Investors pumped a substantial $12.19 billion into global equity funds, a jump of 32% compared with about $9.24 billion worth of net acquisitions in the week before, LSEG Lipper data showed.
Global investors stepped up purchases in equity funds in the week ended Nov. 27, encouraged by prospects of robust U.S. growth under the Trump administration and boosted by cooling treasury yields. Investors pumped a substantial $12.19 billion into global equity funds, a jump of 32% compared with about $9.24 billion worth of net acquisitions in the week before, LSEG Lipper data showed.
Brazil's government debt as a share of gross domestic product increased to 78.6% in October from 78.2% the month before, central bank data showed on Friday. The Brazilian public sector posted a primary surplus of 36.883 billion reais for the month, while economists polled by Reuters were expecting a 40 billion reais surplus.
Futures tied to Canada's main stock index edged higher on Friday in thin trading volumes, while investors looked forward to the day's key economic data to gauge the pace of the Bank of Canada's interest-rate cuts. December futures on the S&P/TSX index were up 0.1% at 6:06 a.m. ET.
* July-Sept GDP growth 5.4% y/y vs 6.5% in Reuters poll. * Manufacturing grows 2.2% y/y vs 7% rise in April-June. * Economists say economic growth dragged down by slower consumption. By Manoj Kumar and Shivangi Acharya.
India's economy grew by 5.4% in the July-September quarter from a year earlier, compared with 6.7% growth in the previous three months, government data showed on Friday. A Reuters poll had predicted a 6.5% expansion in gross domestic product for the quarter ending Sept. 30.
The Bank of England warned on Friday that higher trade barriers could hit global growth and feed uncertainty about inflation, potentially causing volatility in financial markets and pushing up borrowing costs for businesses and consumers.
Greece's jobless rate stood at 9.8% in October, up from an upwardly revised 9.4% in September, data from statistics service ELSTAT showed on Friday. Seasonally adjusted data showed 466,858 people were officially unemployed. Unemployment impacted women more than men, at the rates of 11.9% and 8.2%, respectively.
Euro zone inflation accelerated in November and its most closely watched components remained high, data showed on Friday, adding to the case for a more cautious European Central Bank interest rate cut next month. Consumer price inflation in the 20 countries sharing the euro stood at 2.3% in November, according to the data from Eurostat.
The yen jumped more than 1% against the U.S. dollar to a six-week high on Friday after faster-than-expected inflation in Tokyo supported bets for a Bank of Japan interest rate hike next month. The dollar sagged against its peers in trading thinned by the U.S. Thanksgiving holiday.
* BoE tests resilience of ICE Clear, LCH and LME Clear. * LME metal trade clearing most vulnerable to risks. * BoE says results overall not a cause of concern. By David Milliken.
The Russian rouble was stable on Friday, the day after the central bank stopped foreign currency purchases and President Vladimir Putin said there was no need to panic about the fall of the Russian currency in recent days.
Turkey's economy grew at a less than expected 2.1% in the third quarter as demand ebbed - especially in the services sector - under the weight of high interest rates, data showed on Friday. Third-quarter gross domestic product dipped by 0.2% from the previous quarter on a seasonally and calendar-adjusted basis, Turkish Statistical Institute data showed.
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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