Euro zone government bond yields dropped slightly on Friday ahead of U.S. economic data later in the session that could provide further clues about the Federal Reserve easing path. Euro area borrowing costs spent the previous session catching up with a jump in U.S. Treasury yields after their gap with German Bunds reached its widest point in over five years.
U.S. stocks rallied to close out the trading week on Friday after two lackluster sessions as a cooler-than-expected inflation report and comments from Federal Reserve officials eased worries about the path of interest rates.
* Markets had expected 2 percentage point increase to 23% * Putin called publicly on Thursday for 'balanced' action. * Central bank had been heavily criticised by business. * Economy heavily skewed by conflict in Ukraine. By Elena Fabrichnaya and Gleb Bryanski.
* Russia central bank decision on deck. * MSCI EM FX, stocks index set for weekly declines. * China bond yields fall. * EM FX up 0.1%, stocks down 0.8% By Lisa Pauline Mattackal.
Greece's current account deficit shrank in October compared to the same month in 2023, the Bank of Greece said on Friday. Central bank data showed the current account deficit was 383 million euros in October, down from a deficit of 1.21 billion euros in the same month a year ago.
The Russian rouble strengthened against the U.S. dollar and China's yuan on Friday, ahead of an anticipated interest rate hike by the central bank that is, however, not expected to have a significant short-term impact on the currency.
* Trump says EU has tremendous trade deficit with the US. * Europe is already buying large chunk of US oil and gas. * US already exporting all the energy it doesn't consume at home. * EU says it is ready to discuss trade ties, including energy. * EU's trade surplus with U.S. is second largest after China.
Japan's Nikkei share average fell on Friday and logged its worst week in more than a month despite the tailwind from a weaker yen, as the decline on Wall Street and caution after major central bank policy decisions weighed. The Nikkei closed 0.29% lower at 38,701.90, bringing it to a weekly decline of 1.66%, its steepest decline since early-November.
The U.S. dollar's latest surge has forced central banks around the world to lean against it, selling greenback reserves to stabilise local currencies but potentially exaggerating dollar strength into the bargain and sowing problems down the line.
* ASX200 logs worst week since mid-April. * Banks slump; RBA meeting minutes due next week. * NZ50 snaps two-day losing streak. By Nikita Maria Jino and Roushni Nair. Banks dragged Australian shares lower on Friday and to their worst week since mid-April, as investors remained cautious after the U.S. Federal Reserve signalled fewer interest rate cuts in 2025.
* Dollar extends rally on hawkish Fed outlook. * Yen slides, officials step up intervention warnings. * US PCE data in focus. By Rae Wee. The dollar was set to cap the week on a strong note on Friday as it notched a two-year high bolstered by a hawkish U.S. rate outlook, while the yen struggled to stay afloat as it again weakened to a new low.
Asian currencies and stocks lost more
ground on Friday and were poised to close the week lower, as a
hawkish U.S. rate outlook kept investor sentiment subdued.
The Malaysian ringgit and ...
Copper prices rebounded on Friday from a five-week low hit in the previous session, as most base metals gained on positive economic indicators from the United States. Gains were however limited by a stronger U.S. dollar and a hawkish Federal Reserve rate outlook. "The dollar remains strong. Three-month copper on the London Metal Exchange rose 0.6% to $8,934 per metric ton by 0712 GMT.
China kept its benchmark lending rates unchanged on Friday, with the one-year loan prime rate held at 3.1% and the five-year LPR at 3.6%. The People's Bank of China's decision comes as it works to stimulate economic growth and support the weakening yuan. This move follows a 25-basis-point rate cut by the U.S. Federal Reserve on Wednesday.
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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