-Federal Reserve Vice Chair Philip Jefferson on Friday said he feels the current surge in stocks related to artificial intelligence is unlikely to be a replay of the late 1990s dot-com stock boom that ended in a bust, in large part because AI-related firms are well established and have actual earnings.
Traders on Friday moved to boost bets the Federal Reserve will cut the U.S. policy rate for a third straight time when policymakers meet on December 9-10, as New York Fed President John Williams said the central bank could cut rates in the "near term." Short-term interest-rate futures now reflect a 57% chance of a December Fed rate cut, up from well below 50% earlier.
The Swiss National Bank has a high bar for lowering interest rates below zero, given that negative rates can be a big challenge for a lot of actors in the economy, SNB Chairman Martin Schlegel said on Friday. However, the SNB is ready to go into negative rate territory if necessary to ensure price stability in the medium term, Schlegel added.
US equity futures were higher pre-bell Friday, rebounding from losses from the previous session, after a Federal Reserve official fueled rate cut hopes. Dow Jones Industrial Average futures were 0.5% higher, S&P 500 futures were up 0.3%, and Nasdaq futures were 0.1% higher.
The US dollar was mixed -- up versus the euro and pound, down versus the yen and Canadian dollar -- against its major trading partners early Friday ahead of a busy day that begins with appearances by Federal Reserve Governors Michael Barr and Philip Jefferson at 8:30 am ET and 8:45 am ET, respectively.
Mexico's economy shrank by 0.3% in the third quarter, data from the national statistics agency INEGI showed on Friday, fueling concerns over Latin America's second-largest economy. The GDP data was in line with INEGI's preliminary estimate last month and forecasts from economists in a Reuters poll, both of which pointed to a 0.3% contraction from the previous quarter.
Comments from a top U.S. Federal Reserve official on Friday that interest rates can fall "in the near term" boosted the likelihood of a rate cut at the Fed's December 9-10 meeting, even as other policymakers insisted borrowing costs should remain steady for now to ensure inflation declines in coming months.
The U.S. Federal Reserve can still cut interest rates "in the near term" without putting its inflation goal at risk, New York Fed president John Williams said on Friday.
* Futures: Dow up 0.26%, S&P 500 down 0.12%, Nasdaq down 0.37% * Gap rises as quarterly comp sales, profit top estimates. * S&P flash manufacturing and services PMI due at 09:45 ET. By Shashwat Chauhan and Pranav Kashyap.
The benchmark US stock measures were mostly pointing lower before Friday's open as traders assess the labor market following the release of the delayed September jobs report. The S&P 500 slipped 0.1% and the Nasdaq declined 0.4% before the bell, while the Dow Jones Industrial Average gained 0.2%. The indexes closed Thursday in the red, with the Nasdaq falling to its lowest in more than two months.
Futures for Canada's main stock index edged lower on Friday, joining a global selloff as investors offloaded risk assets while the U.S. jobs report offered little clarity on interest rate decisions. Futures on the S&P/TSX Composite Index were down 0.2% as of 05:25 a.m. ET, joining the S&P and Nasdaq futures, which were also lower.
Investors are growing uneasy that the rapid rise in public debt used to bankroll AI investments could strain the U.S. corporate bond market and eventually dampen the appeal of tech stocks, despite leverage across most major companies remaining low for now.
Asian markets closed in the red Friday, tracking Wall Street losses the previous day as concerns over the AI bubble and Fed rate cuts persist. The recent US jobs data dimmed investors' hopes of a Fed rate cut in December, given the higher jobless rate and downward revisions.
U.S. stocks rallied on Friday as investors increased bets that the Federal Reserve will cut interest rates next month,? while all three of the major indexes posted losses for the week amid concerns over lofty technology valuations. The Nasdaq fell for a third straight week in its longest run of weekly losses since March.
* Silver prices fall over 2% * US posts solid job growth in September. * Fed's Hammack says further rate cuts could pose risks to economy. By Noel John. Gold prices fell more than 1% on Friday and were set for a weekly decline after a robust U.S. jobs report dampened expectations of a Federal Reserve rate cut next month, weighing on the non-yielding metal.
British business growth ground almost to a halt this month, as companies put their plans on hold while they waited to see if next week's government budget will raise the tax burden for a second year running, according to a major survey.
Euro zone business activity grew steadily this month as services expanded at the quickest pace in 1-1/2 years, while weak demand sent manufacturing back into contraction territory, a private survey showed. The 20-nation bloc has shown economic resilience despite high global uncertainty since the start of the year, and improving business confidence suggests the momentum is likely to remain intact.
* Eyes on stocks sell off, Fed policy outlook. * ECB likely to maintain current interest rates for now. * U.S. jobs data shows employment growth slowdown, not collapse. By Samuel Indyk. Germany's 10-year bond yield retreated from a six-week high on Friday, with investors remaining focused on the sell-off in global equities and expectations for Federal Reserve policy.
Bowhead Specialty (BOW) said Thursday that it has priced a public offering of $150 million worth of its 7.750% senior notes due 2030. The offering is expected to close on Tuesday. The company said it plans to use proceeds of the offering to make capital contributions to its insurance subsidiary and for other general corporate purposes. MT Newswires does not provide investment advice.
The European Union can offset the economic drag from U.S. trade tariffs and deglobalisation by removing internal barriers, top European Central Bank policymakers said on Friday. The EU is quickly falling behind global competitors because of weak competitiveness, structural rigidities and a complex set of rules that often vary greatly across 27 member states.
* UK budget to test market confidence. * Black Friday, Alibaba (BABA) earnings to gauge consumer health. * A G20 summit without the U.S. Global markets head into another packed week where political leaders, policymakers and consumers take centre stage against a backdrop of nervy markets - with tech stocks and the likes of bitcoin coming under fire.
Emerging Asian stocks fell sharply on Friday, while regional currencies steadied, as traders cut risk exposure after U.S. jobs data failed to clarify the Federal Reserve's policy path.
Reflationist advisers of Japan's new prime minister Sanae Takaichi will speak on a panel hosted by Keidanren on December 17 on the new administration's strategy to strengthen the economy, the business lobby said on Friday. The event will be held a day before the Bank of Japan's two-day policy meeting on December 18 and 19, when the board may discuss raising still-low interest rates.
* Nikkei slumps 2.2%, South Korea plunges 3.7% * Dollar scales new peaks vs yen, Aussie, kiwi. * Japan unveils stimulus package, bond yields retreat from highs. By Stella Qiu.
Cryptocurrencies were caught in a broad flight from risk assets on Friday, sending bitcoin and ether to multi-month lows as worries persisted about lofty tech valuations and bets on near-term Federal Reserve policy easing faded. Bitcoin, the world's largest cryptocurrency, fell 2.1%, breaking below $86,000 to hit a seven-month trough of $85,350.75 in Asian trading.
-Global brokerages are split over whether the U.S. Federal Reserve will cut interest rates in December or hold them, following conflicting signals on job growth and unemployment earlier in the week. Data on Thursday showed non-farm payrolls increased by 119,000 jobs in September after a downwardly revised 4,000 drop in August.
Asian equities slipped on Friday
while currencies held steady, as traders stayed on the sidelines
after U.S. jobs data offered little clarity on when the Federal
Reserve might ease policy.
* U.S. posts solid job growth in September. * Dollar set for weekly gain. * Fed's Goolsbee repeats he is uneasy on rate cuts. By Brijesh Patel. Nov 21 - Gold slipped on Friday and was heading for a weekly fall, as a stronger-than-expected U.S. jobs report reinforced expectations that the Federal Reserve would refrain from cutting interest rates at its December meeting.
* BOJ will debate feasibility, timing of rate hike, Ueda says. * Ueda says he wants 'just a bit more data' on wage impulse. * Weak yen could affect underlying inflation, Ueda says. * Remarks come as government ramps up threat of yen intervention. * BOJ's next meeting on December 18-19 likely to be live. By Leika Kihara.
Bank of Japan Governor Kazuo Ueda said on Friday the central bank will discuss at upcoming policy meetings the feasibility and timing of an interest rate hike with a focus on data offering clues on next year's wage momentum.
* Nikkei slumps 1.8%, South Korea plunges over 3% * Dollar scales new peaks on yen, Aussie, kiwi. * Investors eye Japan's stimulus package on Friday. By Stella Qiu.
Gold prices slipped on Friday and
were on track for a weekly fall, as a stronger-than-expected
U.S. jobs report reinforced expectations that the Federal
Reserve will refrain from cutting rates at its ...
Bank of Japan Governor Kazuo Ueda said on Friday the central bank must be mindful of the chance the weak yen could affect underlying inflation by pushing up import costs and broader prices. "We will be vigilant to how exchange-rate volatility could affect prices," Ueda told parliament.
Wall Street stocks closed sharply higher on Friday as rising expectations of a December interest rate cut by the Federal Reserve offset concerns over lofty tech valuations. A broad rally started gathering momentum by late morning, pushing all three major U.S. stock indexes to substantial gains on the day. Benchmark Treasury yields fell, the dollar was steady and bitcoin pared its losses.
* Nikkei slumps 2%, South Korea plunges almost 4% * Dollar scales new peaks on yen, Aussie, kiwi. * Fed officials voice concerns about financial stability. By Stella Qiu. Asian shares extended a global rout on Friday as the much anticipated U.S. jobs data failed to provide clarity on interest rates, with investors returning to dumping riskier assets even after Nvidia's earnings dazzled.
Japan's manufacturing activity contracted for a fifth month in November, albeit at a slower pace than in the previous month due to a softer decline in output, a private-sector survey showed on Thursday.
* Mixed US jobs report diminishes December Fed cut bets. * Dollar on track for best week in over a month. * Yen rises briefly after Japan's Katayama signals possibility of currency intervention. By Rae Wee.
* Tokyo ready to take action based on US-Japan finance agreement. * Finance minister says FX intervention a possibility. * Analysts see 160 yen per dollar as intervention threshold. * BOJ will debate 'feasibility, timing' of rate hike, Ueda says. * Remarks keep alive chance of BOJ rate hike in December. By Leika Kihara and Makiko Yamazaki.
Bowhead Specialty Holdings Inc. (BOW) today announced that it priced a public offering of $150 million aggregate principal amount of its 7.750% Senior Notes due 2030. The Company intends to use the net proceeds of this offering to make capital contributions to our insurance company subsidiary to grow our business and for other general corporate purposes.
Singapore on Friday upgraded its economic outlook for 2025 as third-quarter gross domestic product growth beat market expectations and initial estimates. GDP rose 4.2% in the third quarter from a year earlier, government data showed, faster than the 2.9% official advance estimate released last month and a median forecast of 4.0% in a Reuters poll of economists.
-Philadelphia Federal Reserve President Anna Paulson said on Thursday she is approaching the U.S. central bank's next meeting "cautiously," despite supporting its last two interest rate cuts, as the threat of prolonged high inflation needs to be balanced with the risk of rising unemployment.
* October core CPI rises 3.0% y/y, matches forecast. * Index excluding fresh food, fuel up 3.1% y/y in October. * Data among factors BOJ will scrutinise at December meeting. By Leika Kihara. Japan's core consumer prices rose 3.0% in October from a year earlier, data showed on Friday, staying above the central bank's 2% target and keeping alive expectations of a near-term interest rate hike.
Japan's core consumer prices rose 3.0% in October from a year earlier, government data showed on Friday. The core consumer price index, which includes oil products but excludes fresh food prices, compared with economists' median estimate for a 3.0% annual gain. Stripping away the effect of fresh food and energy, consumer prices rose 3.1% in October from a year ago.
AM Best has affirmed the Financial Strength Rating of B++ and the Long-Term Issuer Credit Rating of ?bbb? of Global Protection Reinsurance Ltd.. The outlook of these Credit Ratings is stable. The ratings reflect GPR?s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
US equity indexes fell on Thursday, reversing a rally fueled by Nvidia (NVDA), as government bond yields slid and volatility surged amid concern that the September nonfarm payrolls could complicate the path for an interest-rate cut in December.
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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