The Bank of Japan kept interest rates unchanged on Thursday but one dissenting board member's proposal to push up borrowing costs showed the central bank remains on track to tighten policy early next year.
China is widely expected to leave its benchmark lending rates unchanged on Friday, a Reuters poll showed, as falling yields, shrinking net interest margins and a weakening yuan create limits for immediate monetary easing.
Spreads between India and U.S. bond yields plummeted to their lowest levels in nearly two decades in the aftermath of the Federal Reserve delivering a hawkish rate cut at the end of its policy meeting on Wednesday. U.S. yields surged while the slower pace of rise of Indian yields led to a tighter spread or the interest rate gap between the two countries. WHY IT'S IMPORTANT.
New Zealand's economy sank into recession in the third quarter as activity dived far more sharply than expected and output in the prior quarter was slashed, a dire result that cements the case for more aggressive rate cuts. The shock news sent the local dollar to a fresh two-year low of $0.5614, having already shed 2.2% in the wake of a hawkish easing from the U.S. Federal Reserve.
* Asian stocks follow Wall Street lower after Fed meeting. * Dollar firms against most currencies. * Yen weakens to 155.48 per dollar level after BOJ decision. * BOJ stands pat as expected. By Ankur Banerjee.
The rally in U.S. stocks is encountering a fresh hurdle -- a potentially problematic rise in Treasury yields as the Federal Reserve signals fewer interest rate cuts for 2025.
A look at the day ahead in European and global markets from Tom Westbrook. The Bank of Japan left interest rates on hold, as expected, clearing the way for traders to sell the yen - which fell to a one-month low against the dollar - and then switch their focus to the Bank of England's decision later in the day.
A look at the day ahead in European and global markets from Tom Westbrook. The Bank of Japan left interest rates on hold, as expected, clearing the way for traders to sell the yen - which fell to a one-month low against the dollar - and then switch their focus to the Bank of England's decision later in the day.
* Brent, WTI futures fall nearly 1% * Hawkish central banks weigh on oil demand outlook. * Global oil markets to be in surplus next year, analysts say. * China petroleum demand to peak by 2027, Sinopec says. By Shariq Khan.
The dollar flirted with a two-year peak on Thursday after the Federal Reserve signalled a slower pace of rate cuts in 2025, while the yen blipped lower after the Bank of Japan stood pat on rates.
Indian government bond yields rose sharply on Thursday, with the benchmark bond yield hovering around a key par level, after the U.S. Federal Reserve flagged a slower pace of policy easing in 2025, citing sticky inflation and a stable labour market.
Base metal prices dropped following the Federal Reserve's suggestion of fewer U.S. interest rate reductions in the coming year, which in turn strengthened the dollar. The three-month copper on the London Metal Exchange fell 0.9% to $8,903.5 per metric ton by 0732 GMT.
Japan's Nikkei share average pared early declines on Thursday as the yen weakened following the Bank of Japan's decision to refrain from raising interest rates. The yen fell despite widely-held market expectations that Japan's central bank would push policy tightening to January or March, and was down about 0.3% at 155.26 per dollar by 0340 GMT.
Foreign investors divested Japanese stocks significantly in the week through Dec. 14, exercising caution ahead of policy meetings by the U.S. Federal Reserve and the Bank of Japan, and taking profits after a rally in the local market.
* Asian stocks follow Wall Street after Fed meeting. * Dollar firms against most currencies. * Yen weakens to 155.43 per dollar level after BOJ decision. * BOJ stands pat as expected. By Ankur Banerjee.
Indonesia's central bank said the rupiah's sharp fall to fresh four-months on Thursday was due to the impact of the U.S. Federal Reserve's policy outlook, and said it would act to stabilise the currency against any excessive volatility.
The dollar flirted with a two-year peak on Thursday after the Federal Reserve signalled a slower pace of rate cuts in 2025, while the yen blipped lower after the Bank of Japan stood pat on rates.
* BOJ keeps short-term policy rate target at 0.25% * Hawkish board member Tamura proposes raising rates to 0.5% * Governor Ueda offers few clues on how soon rates could go up. * Next year's wage talk, Trump policies are key to rate-hike timing. * BOJ warns unconventional steps cannot substitute for rate policy. By Leika Kihara, Satoshi Sugiyama.
The Bank of Japan kept interest rates unchanged on Thursday and its governor offered few clues on how soon it could push up borrowing costs, sending the yen and bond yields tumbling on fresh doubts over the near-term chances of a rate hike.
The Bank of Japan kept interest rates steady on Thursday, underscoring policymakers' preference to spend more time scrutinising whether wage hikes will broaden and keep inflation durably around its 2% target. As widely expected, the board decided to keep the BOJ's short-term policy rate unchanged at 0.25% by an 8-1 vote, with board member Naoki Tamura dissenting.
The Bank of Japan kept interest rates steady on Thursday, underscoring policymakers' preference to spend more time scrutinising whether wage hikes will broaden and keep inflation durably around its 2% target. As widely expected, the board decided to keep the BOJ's short-term policy rate unchanged at 0.25% by an 8-1 vote, with board member Naoki Tamura dissenting.
Japan's Nikkei share average slid nearly 1% on Thursday, as traders took cues from an overnight tumble on Wall Street, with tech shares driving the decline.
Federal Reserve Chair Jerome Powell said on Wednesday the U.S. central bank has no desire to be involved in any government effort to stockpile large amounts of bitcoin.
* Korean won hits lowest level since March 2009. * Currency under pressure from hawkish Fed, domestic politics. * Finance minister vows to respond to excessive volatility. * Authorities seek help from pension fund, commercial banks. By Jihoon Lee and Yena Park.
Oil prices fell in early trading on Thursday after the U.S. Federal Reserve signalled that it would slow the pace of interest rate cuts in 2025, potentially impacting fuel demand. Brent futures fell 33 cents, or 0.45%, to $73.06 a barrel by 0107 GMT.
Wall Street rebounded on Thursday and benchmark U.S. Treasury yields hit their highest level since May as stocks recovered in the wake of the Federal Reserve's hawkish outlook. Crude prices dipped and gold rallied as investors grew accustomed to the reality that the central bank will take a slower, more measured approach to policy easing in the coming year.
Wall Street stumbled to a close Thursday, ending nearly flat after an earlier rally ran out of steam late in the session as investors continued to parse the Federal Reserve's hawkish outlook.
* Asian stocks follow Wall Street after Fed meeting. * Dollar firms against most currencies. * Yen hovers near 155 per dollar level ahead of BOJ decision. * Market pricing in BOJ to stand pat. By Ankur Banerjee.
The dollar hovered near its two-year high on Thursday after the Federal Reserve cut interest rates and signaled a much slower monetary policy easing trajectory in 2025, while the yen weakened against the greenback after the Bank of Japan held rates steady.
The dollar flirted with a two-year peak on Thursday after the Federal Reserve signalled a slower pace of rate cuts in 2025, while the yen slid to a one-month low ahead of a policy decision by the Bank of Japan later in the day.
Argentina's carmaking industry will likely see a production increase of about 8% in 2025, compared to output this year, while auto exports should grow by around the same level, data from the sector's ADEFA association showed on Wednesday. ADEFA forecasts that domestic auto sales should reach about 500,000 units next year, or up by about 21% compared to sales this year.
Japan's Nikkei share average slid 1.5% early on Thursday, taking cues from an overnight tumble on Wall Street. Investors were also cautious ahead of a policy decision from the Bank of Japan later in the trading day, with most market participants expecting officials to forgo an interest rate hike this time following recent media reports from Reuters and other news outlets.
The imminent arrival of Donald Trump in the White House was already shaping global economic policy-making this week as the U.S. Federal Reserve flagged fewer rate cuts and other leading central banks signalled caution over their rate paths.
* Some Fed officials incorporated 'highly conditional estimates' of Trump effects in new projections. * Trump tariff threats were a factor in Canadian cabinet upheaval. * Bitcoin enthusiasm dented by Powell comments. By Dan Burns and Howard Schneider.
* BoE to announce December rate decision at 1200 GMT. * Economists predict 8-1 vote to keep rates at 4.75% * Sticky inflation to keep BoE rates higher than Fed, ECB. * BoE's Bailey has said rate cuts will be 'gradual' * Data shows slowing economy, rising wages. By David Milliken.
Japan's 10-year government bond yield jumped on Thursday, as investors awaited the Bank of Japan's policy decision later in the day, while a surge in U.S. Treasury yields overnight hurt sentiment. The BOJ is holding its final policy meeting for the year next week with its decision to be announced just hours after the U.S. Federal Reserve signalled a slower rate cut pace next year.
Laurentian Bank of Canada (LRCDF): * Laurentian Bank of Canada (LRCDF): ANNOUNCES DECREASE TO ITS US BASE RATE IN CANADA OF 25 BASIS POINTS FROM 8.25% TO 8.00% Source text: Further company coverage:
Brazilian central bank will sell up to $3 billion in a spot dollar auction on Thursday morning, it announced on Wednesday, in a bid to strengthen the country's real currency. The auction will start at 9:15 a.m. local time, the monetary authority added.
* US 10-year yield hits 7-month high; 2-year rises to 3-week peak. * US 2/10 yield curve flattened after rate decision. * Fed dots show two cuts in 2025. * US rate futures show just one cut. By Gertrude Chavez-Dreyfuss.
Brazilian central bank will sell up to $3 billion in a spot dollar auction on Thursday morning, it said in a statement on Wednesday. The auction will start at 9:15 am local time, the authority added.
- A look at the day ahead in Asian markets. The Federal Reserve has spoken, and as far as investors are concerned, the message was clear - clearly hawkish. This recent burst of central bank meetings reaches its crescendo with decisions on Thursday also coming from Norway and Sweden, and more importantly from an Asian perspective, Taiwan and the Philippines.
A look at the day ahead in Asian markets. This recent burst of central bank meetings reaches its crescendo with decisions on Thursday also coming from Norway and Sweden, and more importantly from an Asian perspective, Taiwan and the Philippines.
-U.S. stocks plunged on Wednesday after the Federal Reserve cut interest rates by a quarter of a percentage point and the central bank's economic projections signaled a slower pace of cuts next year.
As the market prepares for 2025, there's a lot of uncertainty around what the new administration will mean for the macroeconomic environment and interest rates, the latter of which may be impacted by policy around the deficit, said Steve Shutz, portfolio manager and director of tax-exempt fixed income at Brown Advisory.
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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