* US PCE matches expectations in August. * Platinum at over 12-year high. * Palladium headed for a weekly gain. By Sherin Elizabeth Varghese. Gold gained on Friday after U.S. inflation data came in line with expectations, reinforcing bets that the Federal Reserve may continue with interest rate cuts later this year.
Wall Street's main indexes opened higher on Friday, after the latest inflation data came in line with expectations, easing concerns that persistent price pressures could delay interest rate cuts by the Federal Reserve.
Canadian GDP rose 0.2% in July, a touch above forecasts on goods-sector strength, but Desjardins' Tiago Figueiredo says the momentum is fading with a flash estimate showing August stalled and Q3 growth tracking near 0.5%, reinforcing his view of a 2.00% policy-rate trough. Canadian GDP rose more than expected in July, but that "strength appeared to be fleeting", Figueiredo said Friday.
Gold traded higher early on Friday as a key U.S. inflation measure rose last month but matched expectations, clearing the way for another interest-rate cut from the Federal Reserve next month. Gold for December delivery was last seen up $11.50 to US$3,782.60 per ounce.
* Futures: Dow up 0.44%, S&P 500 up 0.3%, Nasdaq up 0.23% * August PCE figures in line with expectations. * Intel (INTC) up after report company approaches TSMC for investments or partnership. * GlobalFoundries (GFS) up after report on new US chip production rule. By Niket Nishant and Sukriti Gupta.
Brazil posted a smaller-than-expected current account deficit in August, but foreign direct investment remained insufficient to fully offset the 12-month shortfall as a share of gross domestic product, central bank data showed on Friday.
Richmond Federal Reserve President Thomas Barkin said Friday he sees limited risks of a big rise in either unemployment or inflation, letting the Fed balance its two goals as it debates further interest rate cuts. "Our focus is more about balance," Barkin said in comments to be delivered at the Peterson Institute for International Economics.
The Canadian economy posted its first gain in four months with a 0.2% rise in July GDP before likely stalling in August, CIBC's Andrew Grantham said, leaving Q3 growth tracking 0.8% annualized-just below the BoC's 1.0% projection-and putting upcoming jobs and CPI data in focus for a potential October rate cut.
BGC Group (BGC) said Friday it extended its offer to exchange up to $700 million of 6.15% senior notes due 2030 to Oct. 3 from the previous expiration date of Sept. 25. The notes, issued and sold by the company in April in a private offering, will be exchanged for an equal amount of registered 6.15% senior notes due 2030 under the exchange offer, BGC said.
U.S. consumer spending increased slightly more than expected in August as households went on vacation and dined out, keeping the economy on solid ground as the third quarter progressed, while inflation continued to steadily pick up. The report from the Commerce Department on Friday suggested the economy has so far retained most of its momentum from the April-June quarter.
* * Economists predict spending slowdown due to higher prices. U.S. consumer spending increased slightly more than expected in August, keeping the economy on solid ground as the third quarter progressed, while inflation continued to rise at a measured pace.
U.S. stock index futures extended gains on Friday, after an in-line inflation reading reinforced bets that the Federal Reserve may proceed with interest rate cuts this year. A Commerce Department report showed the Personal Consumption Expenditures index rose 2.7% in August on an annual basis, compared with an estimated 2.7% rise, according to economists polled by Reuters.
Canada's monthly gross domestic product rebounded from three months of contraction to grow by 0.2% in July as mining, manufacturing and wholesale trade boosted growth, data showed on Friday.
* * August GDP likely to be flat but avoid a contraction. * GDP figures signals Canada might avoid a recession. * Biggest drivers of July growth were mining, manufacturing. By Promit Mukherjee.
* Trump announces new tariffs from October 1. * Pharmaceutical stocks fall in Asia, most indexes down. * Fed easing expectations recede on US economic resilience. * Dollar headed for weekly gain. By Naomi Rovnick and Rae Wee.
Royal Bank of Canada (RY) is keeping tabs on a number of possible US acquisition targets to expand its business south of the border, Bloomberg News reported Friday, citing Chief Executive Dave McKay. "It wouldn't be asset management. McKay described the possible takeover targets as "high-quality wealth franchises" that could be sought by rivals.
Brazil posted a current account deficit of $4.669 billion in August, central bank figures showed on Friday, while economists in a Reuters poll expected a shortfall of $5.5 billion. Foreign direct investment in the month hit $7.989 billion, exceeding the $6.15 billion projected in the poll.
The Bank of Canada is already within a neutral range and at the fine-tuning stage of adjustments, said Scotiabank. The bank's forecast is for one more rate cut, but with uncertain timing. Scotiabank pointed out that it successfully leaned against speculation toward further rate cuts ever since March.
* Markets trim bets on Fed rate cuts. * Analysts flag muted sensitivity to U.S. tariffs, geopolitical risks. * US consumer spending data release awaited for Fed cues. By Jaspreet Kalra and Rocky Swift.
Canada will release the gross domestic product for July and provide the advance estimate for August at 8:30 a.m. ET on Friday, said Bank of Montreal. Canadian real GDP for July is expected to rebound 0.1% month over o nth after three straight monthly declines stemming from the trade war's hit to exports and investment, noted the bank.
The Canadian dollar's recent performance has been challenged by shifting fundamentals and a renewed dovishness from the Bank of Canada, said Scotiabank. The bank's outlook remains constructive, as Scotiabank still anticipates less easing from the BoC relative to the Federal Reserve and, as such, looks to support from interest rate differentials.
Mexico's central bank delivered a widely anticipated 25bps rate cut to 7.50% on Thursday, while signaling further room to ease amid the sluggishness of economic activity, said BBVA Research. Banxico's modest inflation forecasts revisions signal a positive outlook, likely underpinned by a widening negative output gap, noted BBVA Research.
Check out what the ROI team are excited to read, watch and listen to over the weekend. From the Editor: Hello Morning Bid readers!?. The job of the U.S. Federal Reserve was made a bit harder yesterday.
Futures tied to Canada's main stock index edged lower on Friday as investors awaited domestic GDP and U.S. inflation data. Futures for Toronto's S&P/TSX index were down 0.2% at 1,752.50 points by 06:09 a.m. ET, after three straight sessions of declines.
U.S. stocks ended higher on Friday after mostly in-line U.S. inflation data, but the three major indexes posted losses for the week. The S&P 500 and Nasdaq snapped?three-week streaks of weekly gains. The Commerce Department's personal consumption expenditures index report for August showed inflation behaving as expected while personal income and consumer spending surprised to the upside.
Societe Generale in its early Friday economic news summary pointed out: -- The US dollar consolidates overnight gains, two-year United States Treasury backs up to 3.65% after strong durable goods, weekly jobless claims drop to 218,000, Q2 gross domestic product revised up to 3.8% quarter-over-quarter seasonally adjusted annual rate, personal consumption upgraded to 2.5%. UST seven-year auction ...
* U.S. GDP grew faster than estimated in second quarter. * U.S. personal consumption expenditure data due on Friday. * Platinum at 12-year high, all metals set for weekly gains. By Ishaan Arora. Gold held steady on Friday after better-than-expected U.S. GDP data dampened bets of further U.S. rate cuts, while investors awaited key inflation data later in the day.
Euro zone consumers raised some of their inflation expectations in August and saw higher income growth in the year ahead, the European Central Bank's monthly Consumer Expectations Survey showed on Friday.
The European Central Bank said on Friday it would conduct new experiments next year about what could be achieved through a digital euro, in a further step for a project it sees as key for preserving the euro zone's financial autonomy from the United States.
The Bank of Japan will probably raise its benchmark interest rate at least four more times to 1.5% before Governor Kazuo Ueda's term ends in early 2028, former central bank board member Makoto Sakurai told Reuters. Sakurai, who retains close contact with incumbent policymakers, forecast another hike by year-end, two more increases in fiscal 2026, and one or two hikes in the year ending March 2028.
Japanese government bonds traded in a narrow range on Friday, as investors adjusted positions ahead of the weekend, with attention on the potential timing of Bank of Japan policy tightening and the race to select the next prime minister.
By Joachim Klement. Tech giants are ploughing money into artificial intelligence, fueling the ongoing U.S. stock market rally in the process. But rising long-term Treasury yields are jeopardising the investment boom in data centres and other infrastructure. While the U.S. economy faces persistent inflation and signs of labour market weakness, U.S. stocks continue to post new all-time highs.
U.S. President Donald Trump's tariff decisions since he took office in January have shocked financial markets and sent a wave of uncertainty through the global economy.
The Reserve Bank of Australia will keep its cash rate at 3.60% next week, all the economists in a Reuters poll said, as the labour market remains tight and policymakers wait to see firm signs that inflation is?easing.
* Trump slaps fresh tariffs on a broad range of imports. * U.S. economy grew faster than estimated in second quarter. * U.S. PCE data due at 1230 GMT. * Platinum hovers near 12-year high. By Anmol Choubey.
* Market reduces bets for Fed rate cuts. * US consumer spending data release awaited for Fed stimulus signals. * Tokyo's core inflation fuels expectations of BOJ rate hike. By Rocky Swift. The dollar held on to steep gains on Friday after better-than-forecast U.S. data dampened expectations for further easing by the Federal Reserve this year.
Gains in Wall Street indexes on Friday were not enough to erase a loss for the week while resilient consumer spending supported longer-dated Treasury yields and gold rose as a steady inflation reading supported bets on future Federal Reserve rate cuts.
Gold edged lower on Friday after
stronger-than-expected U.S. economic data cast doubt on the
Federal Reserve's rate cut outlook and lifted the dollar, while
investors awaited U.S. inflation data ...
* Sept Tokyo core CPI up 2.5% yr/yr vs forecast +2.8% * Index excluding fresh food, fuel rises 2.5% yr/yr. * 30 meeting. By Leika Kihara. TOKYO, Sept 26 - Core inflation in Japan's capital held steady in September and stayed well above the central bank's 2% target, data showed on Friday, as price pressures keep alive market expectations of a near-term interest rate hike.
There's little prospect of the Federal Reserve changing its 2% inflation target right now. Figures on Friday are expected to show that U.S. inflation in August exceeded the Fed's 2% goal for the 54th month in a row. And there's every likelihood that inflation won't get back to 2% for several more months, probably years. Even that timeline could prove to be tough.
* Sept Tokyo core CPI up 2.5% yr/yr vs forecast +2.8% * Index excluding fresh food, fuel rises 2.5% yr/yr. * Data among factors BOJ will scrutinise at Oct 29-30 meeting. By Leika Kihara.
KBRA assigns a long-term rating of K1+ to the San Diego Unified School District: 2025 General Obligation Bonds; 2025 General Obligation Bonds; and, 2025 General Obligation Bonds. Key Credit Considerations The rating actions reflect the following key credit considerations: Credit Positives. Credit Challenges. Rating Sensitivities For Upgrade. For Downgrade.
The Las Vegas Global Economic Alliance and the International Economic Development Council are proud to announce Danielle Casey, President & CEO of the Las Vegas Global Economic Alliance, has been appointed to serve as the Chair of the IEDC Board of Directors for the 2026 calendar year.
Black Hills said late Thursday it has priced a public debt offering of $450 million aggregate principal amount of 4.55% senior unsecured notes due Jan. 2031. The company plans to use the proceeds to repay, redeem, or otherwise retire $300 million of its outstanding 3.950% notes due Jan. 2026. The offering is expected to close on Oct. 2, the company added.
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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