Wednesday's inflation report confirmed what Deutsche Bank's chief U.K. economist Sanjay Raja said he expected: the headline consumer price index was a touch stronger than consensus, with overall price momentum up 3.8% year over year, core CPI up 3.8% year over year and services CPI up 5% year over year.
The US dollar was mixed against its major trading partners early Wednesday - up versus the Euro and Canadian dollar, down versus the pound and yen -- ahead of the release of weekly oil stocks inventory data at 10:30 am ET and minutes of the June 29-30 Federal Open Market Committee meeting, where two Fed governors dissented from the decision to maintain interest rates, at 2:00 pm ET.
Canada will release the New House Price Index for July at 8:30 a.m. ET on Wednesday, said Bank of Montreal. The bank expects the NHPI to fall 1.5% year over year in July as the housing market remains under pressure. Tuesday's consumer price index report showed inflation eased to 1.7% year over year in July, though core price pressures remained elevated.
Iceland's central bank Wednesday said its Monetary Policy Committee kept interest rates unchanged, including the key rate on seven-day term deposits at 7.50%. All MPC members voted in favor of the decision, noted the central bank in its policy statement. Headline inflation measured 4% in July, after falling by 0.2 percentage point from the previous month.
Wall Street futures pointed modestly lower pre-bell Wednesday as traders weighed earnings reports, the tech outlook, and awaited clues from the nation's central bank. The Federal Reserve at 2 pm ET will release minutes from its July 29-30 policy meeting.
The biggest mover overnight Tuesday was the New Zealand dollar, which has weakened sharply by over 1% against the US dollar, said MUFG. It has resulted in the NZD/USD rate falling back towards 0.5800 while AUD/NZD has risen above 1.1050, wrote the bank in a note.
Societe Generale in its early Wednesday economic news summary pointed out: -- Risk off on Tech retracement, JPY/G10 bid, yields steady. -- United Kingdom consumer price index accelerates to 3.8% year over year in July, above forecast. -- Sweden's Riksbank keeps policy rate on hold at 2.0%, still sees some probability of a further interest rate cut this year.
Hanover Insurance Group (THG) said late Tuesday it has priced a registered offering of $500 million of 5.5% senior unsecured notes due 2035. Net proceeds will be used to repay the company's outstanding 7.625% senior notes due 2025 and 4.5% senior notes due 2026, as well as for general corporate purposes, the company said. Closing of the offering is expected on Thursday, subject to customary conditions.
US benchmark equity indexes ended lower on Tuesday as big tech stocks slumped and the Trump administration broadened its 50% tariffs on steel and aluminum to over 400 new product categories. * Housing starts in July rose 5.2% to an annual rate of 1.428 million from the previous month, exceeding Bloomberg's estimate of 1.297 million.
The muni bond market remains strong, supported by Treasury market strength, said Anders S. Persson, Nuveen's chief investment officer for global fixed income, and Daniel J. Close, Nuveen's head of municipals.
Financial stocks were mixed in late Tuesday afternoon trading with the NYSE Financial Index little changed and the Financial Select Sector SPDR Fund gaining 0.1%. The Philadelphia Housing Index climbed 1.7%, and the Real Estate Select Sector SPDR Fund added 1.6%. Bitcoin fell 2.9% to $112,905, and the yield for 10-year US Treasuries dropped 3.9 basis points to 4.30%. In economic news, July hous...
Fed Vice Chair for Supervision Michelle Bowman told Bloomberg in an interview that she still believes that a rate reduction at the July 29-30 Federal Open Market Committee meeting was appropriate and stands by her dissent at that meeting.
Housing starts rose by 5.2% to a 1.428 million annual rate in July, with single-family housing starts and multi-family starts both higher. Building permits fell by 2.8% to a 1.354 million rate in July. The number of homes under construction and completions increased in the month, which should add to the supply of homes for sale in the near term.
Chicago Public Schools officials said they will not be making a disputed pension payment when they presented the district's 2026 budget at a board meeting Wednesday.
Gold moved lower midafternoon on Tuesday, sticking to a tight range as the dollar moved up from early weakness after U.S. housing starts rose to a five-month high in July, topping expectations, while safe-haven buying eases on hopes for an potential ceasefire in Russia's war on Ukraine.
Financial stocks rose in Tuesday afternoon trading with the NYSE Financial Index and the Financial Select Sector SPDR Fund each adding 0.1%. The Philadelphia Housing Index climbed 1.3%, and the Real Estate Select Sector SPDR Fund added 1.4%. Bitcoin fell 2.4% to $113,515, and the yield for 10-year US Treasuries dropped 3.9 basis points to 4.30%. In economic news, July housing starts rose by 5.2...
Financial stocks rose in Tuesday afternoon trading with the NYSE Financial Index and the Financial Select Sector SPDR Fund each gaining 0.1%. The Philadelphia Housing Index climbed 1.3%, and the Real Estate Select Sector SPDR Fund added 1.4%. Bitcoin fell 2.4% to $113,515, and the yield for 10-year US Treasuries dropped 3.9 basis points to 4.30%. In economic news, July housing starts rose by 5....
US housing starts unexpectedly increased in July amid gains in single- and multi-family units, though building permits dropped, government data showed Tuesday. Housing starts rose 5.2% sequentially to a seasonally adjusted annual rate of 1.43 million units last month, according the Census Bureau and the Department of Housing and Urban Development.
Latin American economies entered Q3 with clear signs of weakening momentum, said Societe Generale. Chile's growth slowed in Q2, with negative monthly activity at quarter end, while Colombia's gross domestic prodcut and activity fell short of expectations, suggesting a negative carryover effect for Q3, wrote the bank in a note to clients.
The Toronto Stock Exchange is down 41 points at midday, with most sectors lower. Healthcare and info tech are the biggest decliners, down 1.4% and 1%, respectively, followed by miners, down 0.9%. Industrials, up 0.9%, is the biggest gainer. TD Economics said headline CPI inflation for July came in at 1.7%, cooling from the 1.9% in June and below expectations for a 1.8% print.
Measures of core inflation were softer in July, but it's just one set of readings ahead of a lot of further information on the road to the next Bank of Canada decision on Sept. 17, said Scotiabank. That's probably why the market reactions on Tuesday after the release of the consumer price index were fairly muted, noted the bank.
Canadian inflation was slightly weaker than expected in July, with the modest monthly increase causing the 12-month measure to fall by more than economists had anticipated, said National Bank of Canada. Core measures were also weaker than forecasted, with the trimmed consumer price index falling unexpectedly by one-tenth of a percentage point over the month, noted the bank.
An easing in inflationary pressures during July means that Canada has successfully cleared one obstacle on the path towards a potential September interest rate cut, said CIBC.
RBC Capital Markets, maintained its sector-perform rating and $9.00 price target on the shares of Obsidian Energy (OBE) as the oil and gas producer cut debt. The company announced that it has elected to redeem $30 million of its outstanding $110.8-million 11.95% senior unsecured notes on Aug. 29.
State-level data released by the Bureau of Labor Statistics Tuesday showed the unemployment rate fell in two states in July, rose in one and held steady elsewhere. The only unemployment rate declines were in Colorado and Alabama, where it fell by 0.2 percentage point each.
Equity markets reached new highs last week, recovering from the temporary hiccup. The Core Consumer Price Index came in hotter than expected. The market overwhelmingly expects the current data to support the Fed?s rate cut in September.
Canadian headline consumer price index inflation for July came in at 1.7% year-on-year, cooling from the 1.9% in June and below expectations for a 1.8% year over year print, said TD. Gasoline prices fell 0.7% on the month, on lower geopolitical tensions and increased OPEC+ output, and were a drag on the index.
The Canadian headline consumer price index rose 0.30% month over month in July, leaving the annual rate slowing from 1.9% to 1.7%, noted Desjardins after Tuesday's release of CPI data.
Gold edged higher early on Tuesday, sticking to a tight range even as the dollar moved down after U.S. housing starts rose to a five-month high in July, topping expectations, while safe-haven buying eases on hopes for an potential ceasefire in Russia's war on Ukraine.
The deputy treasurer of the Commonwealth of Massachusetts will be inducted into The Bond Buyer's Hall of Fame of Municipal Finance in Boston on Sept. 30.
An easing in inflationary pressures during July means that one obstacle on the path towards a potential September Bank of Canada interest rate cut has been "successfully cleared," said CIBC after Tuesday's release of consumer price index data.
The Canadian consumer price index rose 1.7% on a year-over-year basis in July, down from a 1.9% increase in June, said the country's statistical agency on Tuesday. July's CPI was in line with a consensus figure provided by Mitsubishi UFG.
July housing starts rose by 5.2% from the previous month to a 1.428 million annual rate, compared with expectations compiled by Bloomberg as of 7:40 am ET for a 1.297 million rate after an increase to a 1.358 million pace in June. Building permits fell by 2.8% to a 1.354 million rate in July, compared with the 1.386 million rate expected and following a slight drop to a 1.393 million rate in June.
Canada's youth unemployment rate rose to 14.6% in July, the highest rate since 2010, aside from the extreme distortion of the first year of the COVID-19 pandemic, said Bank of Montreal. Before 2020, the highest youth jobless rate was set in 1982 at just above 20%. But that sky-high rate was accompanied by the highest overall jobless rate of the post-war era, noted the bank.
Speculation is growing over whether Canada's central bank could resume interest rate cuts in September, as weak economic data from the United States suggests the U.S. Federal Reserve will cut rates next month, said Morningstar. Canada's economy is inextricably tied to the economic well-being of the U.S., its largest trading partner, noted Morningstar.
Societe Generale asked if Canadian consumer price index data can inflict more pain on global bonds on Tuesday. Canada will release July's CPI at 8:30 a.m. ET on Tuesday. The consensus for core is for a rise to 3.1% year over year from 3.0%, said the bank.
The US dollar fell against its major trading partners early Tuesday, except for a small gain versus the Canadian dollar, ahead of the release of home construction data for July at 8:30 am ET and weekly Redbook same-store sales at 8:55 am ET.
Canada releases July inflation at 8:30 a.m. ET on Tuesday, noted ING. Expectations are for an acceleration to 0.3% month over month in headline, but a slowdown in year-over-year terms to 1.8%, said the bank.
Reliance said Tuesday it has entered into a $400 million unsecured term loan facility maturing in August 2028. The loan was used to refinance the company's $400 million senior unsecured notes that matured Aug. 15, Reliance said. MT Newswires does not provide investment advice.
Canadian housing starts jumped to 294,000 annualized units. in July, one of the highest levels in the 35-year history of the series, noted Bank of Montreal after Monday's data from Canada Mortgage and Housing Corp.. Smoothing out the monthly volatility, it's clear that starts have held up well above pre-pandemic levels, said the bank.
loanDepot said Tuesday it has completed a $150 million private offering of secured term notes through its subsidiary, loanDepot GMSR Master Trust. The company said the notes, backed by mortgage servicing rights tied to Ginnie Mae-backed loans, carry a variable interest rate based on SOFR plus a margin and mature in July 2030.
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.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Log In Required
Publication Date