The U.S. economy grew faster than previously estimated in the third quarter, driven by robust consumer spending. Gross domestic product increased at an upwardly revised 3.1% annualized rate, the Commerce Department's Bureau of Economic Analysis said in its third estimate of third-quarter GDP on Thursday. Economists polled by Reuters had forecast GDP would be unrevised.
Three quarters of homeowners born before 1964 are likely to leave much of their $17 trillion in home equity to their children, according to Freddie Mac?s latest analysis of the housing perceptions, preferences and plans of Baby Boomers.
The U.S. economy grew faster than previously estimated in the third quarter, driven by robust consumer spending. Gross domestic product increased at an upwardly revised 3.1% annualized rate, the Commerce Department's Bureau of Economic Analysis said in its third estimate of third-quarter GDP on Thursday. Economists polled by Reuters had forecast GDP would be unrevised.
The U.S. economy expanded at an annualized real growth rate of 3.1% in the third quarter of 2024, exceeding the prior estimate of 2.8%, according to the official final reading released on Thursday. This marks the fastest pace of economic expansion since the fourth quarter of 2023 and signals a stronger-than-expected rebound in activity.
The number of Americans filing new applications for jobless benefits fell more than expected last week, almost reversing the prior two weeks' increases and suggesting that a gradual labor market slowdown remained in place. Other data on Thursday showed the economy grew faster than previously estimated in the third quarter, driven by robust consumer spending.
The number of Americans filing new applications for jobless benefits fell more than expected last week, consistent with a gradual cooling in labor market conditions. Initial claims for state unemployment benefits dropped 22,000 to a seasonally adjusted 220,000 for the week ended Dec. 14, the Labor Department said on Thursday.
The Russian economy is showing signs of overheating which is stoking worryingly high inflation, President Vladimir Putin said, expressing hope for a "balanced" rate decision by the central bank when it meets on Friday. Addressing Russians in his annual phone-in, Putin generally backed the central bank's tight monetary policy but also suggested it could have acted in more timely fashion.
The challenge to the 2022 approval of bonds for a PACE program could "catastrophically undermine" the finality of all Florida bond validations, the agency said.
* BoE votes 6-3 to keep rates on hold at 4.75% * Economists had forecast 8-1 split on MPC. * BoE's Bailey says gradual approach still needed. * BoE should not commit on rate cut timing, Bailey says. * Investors see slightly more rate cutting by BoE in 2025. By David Milliken and Suban Abdulla.
The Bank of England wrapped up a big year of central bank rate cuts by keeping rates steady on Thursday, a day after the Federal Reserve eased policy but suggested it would be more cautious in 2025. Seven of the world's 10 major, developed-market central banks cut rates this year, with only Australia and Norway still on hold. 1/ SWITZERLAND.
The Bank of England wrapped up a big year of central bank rate cuts by keeping rates steady on Thursday, a day after the Federal Reserve eased policy but suggested it would be more cautious in 2025. Seven of the world's 10 major, developed-market central banks cut rates this year, with only Australia and Norway still on hold. 1/ SWITZERLAND.
* BoE holds rates but policy split widens. * February rate cut now looks more likely - analysts. * Short-dated gilts win reprieve from dovish tone. By Harry Robertson and Naomi Rovnick.
The pound slipped on Thursday after the Bank of England held interest rates but three policymakers voted to lower borrowing costs, denting a rebound against the dollar as markets swung in the wake of the Federal Reserve's decision on Wednesday. Britain's 10-year government bond yield fell and was last up 1 basis point at 4.569%, from 4.598% before the decision.
12 noon BANK OF ENGLAND MONETARY POLICY SUMMARY, DECEMBER 2024. The Monetary Policy Committee sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. MPC adopts a medium-term and forward-looking approach to determine the monetary. stance required to achieve the inflation target sustainably.
Bank of England policymakers voted 6-3 to keep interest rates on hold on Thursday, a bigger split than economists had predicted as officials disagreed over how to respond to a slowing economy that remains beset by inflation pressures.
-????????? Repriced $1.4 Billion of Corporate Term Loans ??? -????????? Raised $783 Million of New Corporate Debt at Record Low Spreads? ? -????????? Extended Weighted Average Corporate Debt Maturity from 2.2 Years to 3.5 Years ? ? GREENWICH, Conn. "We have seen?a thawing in CRE capital markets that has created increased lending opportunities for our low-leverage, diversified business.
Indian government bond yields jumped on Thursday, with the benchmark yield ending at a three-week high, after the U.S. Federal Reserve flagged a slower pace of policy easing in 2025, citing sticky inflation and a stable labour market.
Futures tracking Canada's main index were steady on Thursday, after stocks took a beating in the prior session when the U.S. Federal Reserve forecast a slower pace of interest rate cuts next year. December futures on the S&P/TSX index were flat at 06:00 a.m. ET.
Brazil's central bank bumped up its economic growth forecast for this year to 3.5% from 3.2% and for next year to 2.1% from 2.0%, according to its quarterly inflation report released on Thursday. The report's inflation projections show consumer prices above the upper limit of the bank's tolerance range until the third quarter of 2025. For 2026, the central bank estimated inflation at 3.6%.
A look at the day ahead in U.S. and global markets from Mike Dolan. Although the Federal Reserve's "hawkish cut" on Thursday had been broadly expected, markets now fear 4% policy rates will be the floor for the coming year at least - and no further easing until midyear or later.
A look at the day ahead in U.S. and global markets from Mike Dolan Although the Federal Reserve's "hawkish cut" on Thursday had been broadly expected, markets now fear 4% policy rates will be the floor for the coming year at least - and no further easing until midyear or later.
* Maintains rate at 16-year high of 4.5% * Says restrictive policy still needed. * Expects first cut in March, sees rate at 3.75% at end-2025. * Norway economy holding up, but outlook uncertain. * Sees worries over international trade.
* Some in Fed pencil in slower rate cuts on Trump uncertainty. * BOJ keeps ultra-low rates, warns of uncertainty on outlook. * BoJ, Norwegian, Swedish central banks stress caution. * Bitcoin enthusiasm dented by Powell comments. By Dan Burns and Howard Schneider.
* EM central bankers rush to shore up currencies. * Czech central bank expected to hold rates. * EM stocks down 1.2%, FX down 0.4% By Lisa Pauline Mattackal. Emerging market assets dropped on Thursday after investors were jolted by the U.S. Federal Reserve's signals of fewer rate cuts next year, with global stocks falling and the dollar rising against most EM currencies.
U.S. 10-year Treasury yields rose to a fresh 6-1/2-month high on Thursday after the Federal Reserve flagged a slower pace of easing next year as it lowered rates by 25 basis points. Fed Chair Jerome Powell said reductions in borrowing costs hinge on further progress in lowering stubbornly high inflation. The U.S. 10-year yield hit its highest since late May at 4.544% in early London trade.
-Wall Street's main indexes gained some ground on Thursday, a day after the Federal Reserve's projections of fewer-than-expected interest rate cuts and higher inflation next year wrong-footed some investors and pummeled U.S. stocks. The benchmark S&P 500 was last up 0.3%, paring most of its gains in the first hour of the trading session, as a rise in U.S. Treasury yields weighed.
* Futures up: Dow 0.3%, S&P 500 0.4%, Nasdaq 0.3% U.S. stock index futures edged higher on Thursday as investors digested the Federal Reserve's projections of fewer-than-expected interest rate cuts and higher inflation next year that pummeled Wall Street a day earlier.
New tariffs U.S. President-elect Donald Trump has pledged to impose on European Union imports would hit Hungary's economic growth and boost inflation, the National Bank of Hungary said in its quarterly inflation report on Thursday.
* Dollar gives up some gains after surging on Fed. * Yen tumbles after BOJ's Ueda stresses patience. * Raft of currencies bounce after tumbling on Wednesday. By Rae Wee, Vidya Ranganathan and Harry Robertson.
* European, Asian stocks follow Wall Street lower after Fed meeting. * Dollar gives back some gains on most currencies after Wed jump. * Yen weakens to 157 per dollar level after BOJ decision. * BOJ stands pat as expected. * Bank of England announces rate decision at midday. By Ankur Banerjee, Alun John.
Euro zone bond yields jumped on Thursday, a day after the U.S. Federal Reserve cut interest rates as expected but signalled it would slow the pace of easing in 2025. Germany's 10-year bond yield, the benchmark for the euro zone bloc, rose 5 basis points to 2.284%, touching its highest level since Nov. 22.
Jeremy Siegel, professor emeritus at the University of Pennsylvania?s Wharton School, described the stock market?s recent downturn as a ?healthy? reaction to the Federal Reserve?s cautious approach to future interest rate cuts.
Norway's central bank held its policy interest rate unchanged at a 16-year high of 4.50% on Thursday, as unanimously expected by analysts in a Reuters poll, and said it plans to start cutting borrowing costs in March next year.
Central banks from Brazil to Indonesia scrambled to defend their struggling currencies on Thursday, hours after the Federal Reserve jolted markets by indicating it may not cut rates by much next year. The Fed's tacit acknowledgement of the inflationary risks likely to come from incoming president Donald Trump's immigration and trade policies unnerved investors.
The chair of the Japanese banking lobby echoed Bank of Japan Governor Kazuo Ueda's cautious view on the Japanese economy on Thursday and said the central bank needed to see sustained wage increases before raising interest rates.
British government bond prices fell sharply on Thursday after the U.S. Federal Reserve shocked global financial markets by signalling it would move slowly with cutting interest rates next year, despite lowering borrowing costs on Wednesday.
* BOJ governor says time needed to gauge wage, U.S. economy outlooks. * Yen sinks to five-month low as traders doubt January hike. * Ueda news conference came after stock markets had closed with moderate losses. By Kevin Buckland.
Sterling inched higher on Thursday as it recovered some of its steep losses suffered late on Wednesday when the U.S. Federal Reserve officials sent the dollar surging by scrubbing out two rate cuts from next year's projections.
Euro zone bond yields jumped on Thursday, a day after the U.S. Federal Reserve cut interest rates as expected but signalled it would slow the pace of easing in 2025. Germany's 10-year bond yield, the benchmark for the euro zone bloc, rose 6 basis points to 2.297%, touching its highest level since Nov. 22.
Investors reduced further their bets on how quickly the Bank of England will cut interest rates next year after the U.S. Federal Reserve signalled it would move slowly with reducing borrowing costs.
* BOJ Governor Ueda stays vague on rate hike outlook. * Dollar breaks above 156 yen level. * Canadian dollar, Aussie hit milestone lows. By Rae Wee. 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 after the Bank of Japan stood pat on rates and offered few clues on its monetary outlook.
* * Cbank governor emphasises cautious approach to further rate cuts. * BSP may cut by 50 bps next year, economist says. By Mikhail Flores and Neil Jerome Morales. The Philippine central bank cut its key interest rate as expected on Thursday but further easing next year might come in "baby steps" as inflation remains a concern.
Japan's Nikkei share average narrowed losses on Thursday as the yen weakened following the Bank of Japan's decision to not hike 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 0.14% at 155.035 per U.S. dollar by 0634 GMT.
* Fed cuts rates as expected but to slow easing cycle. * ASX 200 hits lowest in more than a month. * Heavyweight banks and miners slump. * NZ50 trims losses after slipping 1.4% By Nikita Maria Jino. Dec 19 - Australian shares slipped on Thursday, tracking declines in Asian and Wall Street indices, after the Federal Reserve signalled fewer interest rate cuts for next year.
German consumer sentiment is
expected to improve slightly at the start of next year but at a
low level as high food and energy prices and job insecurity
weigh on households, a survey showed on ...
-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.
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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