Economic data released Friday showed the Fed's preferred inflation gauge eased slightly in September, while early December readings pointed to a rebound in consumer sentiment as inflation expectations cooled. The Bureau of Economic Analysis published the delayed September Personal Income and Outlays report, pushed back several weeks due to the government shutdown.
* Indexes up: Dow 0.49%, S&P 500 0.46%, Nasdaq 0.56% * Warner Bros gains after Netflix (NFLX) agrees to buy the company. * Investors assess inflation and consumer sentiment data. * HPE falls on weak AI server revenue. By Johann M Cherian and Pranav Kashyap.
The University of Michigan's preliminary consumer sentiment index rose to 53.3 in December from 51.0 in November, above expectations for a smaller increase to 52.0 in a survey compiled by Bloomberg as of 7:35 am ET.
U.S. consumer sentiment improved in early December, but worries about high prices and the labor market persisted, a survey showed on Friday. The University of Michigan's Surveys of Consumers said its Consumer Sentiment Index increased to 53.3 this month from a final reading of 51.0 in November.
U.S. consumer spending increased moderately in September after three straight months of solid gains, suggesting a loss of momentum in the economy at the end of the third quarter as a lackluster labor market and rising cost of living curbed demand. The report from the Commerce Department on Friday also showed annual inflation rose at its fastest pace in nearly 1-1/2 years in September.
U.S. consumer spending increased marginally in September, suggesting a loss of momentum in the economy at the end of the third quarter as a lackluster labor market and rising cost of living curbed demand.
The Federal Reserve meeting next week is expected to be one of its most contentious in years, and investors are focused on how divided policymakers are over an expected interest-rate cut and what Chair Jerome Powell signals about the path ahead.
* Fed's internal division over interest-rate cut draws investors' attention. * Markets pricing in an 85% chance of quarter-point cut. * Powell's guidance and dissent count being watched for clues about future Fed policy. By Laura Matthews.
* Major brokerages expect 25-basis-point Fed rate cut in December. * Silver, palladium headed for weekly gain. * PCE inflation data for September due at 10 a.m. ET. By Anmol Choubey. Gold prices rose on Friday as expectations that the Federal Reserve will cut interest rates next week gained traction, with investors awaiting U.S. inflation data that could clarify the central bank's next move.
Ukraine's latest bid to swap its GDP warrants for new bonds is "significantly more appealing" than previous proposals and is likely to lure many of the holders, Citi said in a note on Friday.
The Canadian labor market continued an impressive streak of hiring in November, with 54,000 jobs added and the unemployment rate falling sharply to 6.5%, said CIBC after Friday's Labour Force Survey.
* Canada's unemployment rate in November falls to 6.5% * Economy adds a net of 53,600 jobs in November. * Canada has now added 181,000 new jobs since September. * Average hourly wage growth of permanent employees at 4% By Promit Mukherjee.
Canada will release the Labour Force Survey for November at 8:30 a.m. ET on Friday, said Scotiabank. Consensus is for a 2,500 decline for jobs, while the bank estimates 15,000 job losses. LFS gets revised only once per year, unlike rolling monthly revisions in the United States. The BoC looks at trends, especially for such a "noisy" report, pointed out the bank.
The US dollar fell against its major trading partners early Friday, except for a gain versus the yen, ahead of the release of delayed personal income, spending and price data for September and the preliminary University of Michigan consumer sentiment index for December, all at 10:00 am ET.
Last week, Statistics Canada slipped major revisions to previous data into its gross domestic product release, said Rosenberg Research. Growth for 2022, 2023, and 2024 was each revised upwards by about 0.5%, meaning that GDP by the end of 2024 was a total of 1.7% higher than previously estimated.
The Regents of the University of California will sell $2 billion of bonds next week after yanking a $1.5 billion summer deal amid Trump administration threats.
Canada is scheduled to release the Labour Force Survey for November at 8:30 a.m. ET on Friday, said Bank of Montreal. Following a surprisingly strong 66,600 net gain in October, the bank looks for employment to decline by 5,000 -- Bloomberg consensus is for a 2,500 decline.
* Silver headed for weekly gain. * Gold demand subdued in India, China. * PCE inflation data for September due later today. By Pablo Sinha. Gold gained on Friday, supported by growing bets on a U.S. interest rate cut, with markets focused on upcoming U.S. inflation data ahead of the Federal Reserve's policy meeting next week.
* Traders lay 86% odds on a Fed cut on December 10. * US employment picture murky amid delayed data. * Yen gains amid reports BOJ likely to hike this month. By Joice Alves. The dollar index fell on Friday, trading not far from a five-week low ahead of the delayed release of a key U.S. inflation reading, which is not expected to change bets the Federal Reserve will cut interest rates next week.
European bourses tracked higher midday Friday, en route to a fourth-straight day of gains, as traders weighed odds for a rate cut from the US Federal Reserve next week, and digested a positive report on the overall European economy. Tech stocks led gains on continental trading floors, while oil and property shares lagged.
Japan's economic revitalisation minister, Minoru Kiuchi, called on the central bank to closely communicate with the government in setting monetary policy on Friday, but did not voice opposition to a near-term interest rate hike. Asked about growing prospects of an interest rate hike by the central bank in December, Kiuchi said that specific policy means was for the Bank of Japan to decide.
U.S. stocks closed out the trading week with slight gains on Friday as the latest flurry of economic data kept elevated expectations for a Federal Reserve interest rate cut next week intact.
Morgan Stanley (MS) said on Friday it now expects the U.S. Federal Reserve to deliver a quarter-percentage point rate cut in December, joining peers J.P.Morgan and BofA Global Research, following dovish remarks from central bank policymakers. All three brokerages previously expected the Fed to hold rates steady in December.
Crude oil prices edged lower but U.S. benchmark West Texas Intermediate prices are headed for a weekly gain on Friday amid expectations of a U.S. Federal Reserve interest rate cut and tensions between the U.S. and Venezuela.
* US central bank expected to cut rates next week. * Russia-Ukraine talks stall, affecting oil supply outlook. * OPEC+ production steady, geopolitical tensions influence prices. By Scott DiSavino.
Asian stock exchanges largely gained on Friday on rising expectations that the Federal Reserve will cut rates at its mid-December meeting, following recent soft US labor market reports. Hong Kong and Shanghai finished in the green, while Tokyo fell back.
* Stocks up 0.83%, currencies edge 0.1% higher. * Ukraine creditors balk at Kyiv offer. * European assets steady. By Niket Nishant. Emerging market stocks and currencies were set for weekly gains on Friday as investors turned their focus to upcoming U.S. Personal Consumption Expenditures data amid expectations the Federal Reserve will cut interest rates next week.
* US PCE data for September due later. * European stocks rise, copper hits record highs. * Japanese bonds sell off, yen strengthens on BOJ rate-hike signals. By Amanda Cooper.
The U.S. dollar slipped on Friday but held within recent ranges against major currencies as traders awaited next week's Federal Reserve meeting, where policymakers are widely expected to cut interest rates.
Banco Santander's senior executive, Alexsandro Broedel Lopes, is being investigated by Brazil's central bank over fraud allegations made by his former employer, Itau Unibanco, the Financial Times reported Friday, citing a document. Broedel, who is Itau's former finance chief, was accused of siphoning funds through an arrangement with an external consultant he hired for the bank.
* Traders lay 86% odds on a Fed cut on December 10. * US employment picture murky amid delayed data. * Yen gains amid reports BOJ likely to hike this month. By Joice Alves. The dollar index fell on Friday, trading not far from a five-week low ahead of the delayed release of a key U.S. inflation reading, which is not expected to change bets the Federal Reserve will cut interest rates next week.
Regulators at the Bank of England and the Financial Conduct Authority on Friday announced a package of measures aimed at supporting Britain's mutuals sector. The plans seek to speed up application processes, review credit union regulations, and make it easier for mutuals to co-operate. "Mutuals are a vital part of our financial system.
The ramp-up of U.S. pressure on Venezuelan President Nicolas Maduro's government is bringing fresh attention to the nation's defaulted bonds, including those of the state oil company Petroleos de Venezuela, known as PDVSA. Venezuela defaulted on its debt in 2017 but PDVSA continued to pay holders of a specific bond maturing in 2020.
* U.S. 10-year Treasury yields at near two-week high. * U.S. unemployment benefit claims drop to over three-year low. * PCE data for September due at 1500 GMT. By Ishaan Arora. Gold prices rose on Friday, buoyed by a softer dollar as investors braced for U.S. inflation data that may set the tone for the Federal Reserve's interest-rate policy meeting next week.
The CNN Money Fear and Greed index showed some easing in the overall fear level, while the index remained in the ?Fear? zone on Thursday. U.S. stocks settled mixed on Thursday, with the Nasdaq Composite gaining around 50 points during the session ahead of next week?s widely expected Federal Reserve rate cut.
The long-awaited December U.S. Federal Reserve meeting is almost here. But it's not the only game in town for financial markets with Canadian, Swiss, Australian and Turkish central banks also meeting and the latest China data to pore over.
Investors seeking clarity from the Bank of Japan on how much higher interest rates could go could be disappointed, former central bank officials say, as clear-cut estimates on neutral interest rates are too difficult and even counter-productive.
Copper touched a record high on Friday, after Citi lifted its price outlook for the industrial metal, with supply concerns and optimism around a likely interest rate cut by the U.S. Federal Reserve next week underpinning the market.
* Ueda signals clearer guidance on neutral rate estimate. * BOJ currently sees nominal neutral rate in 1%-2.5% range. * Some in market bet BOJ may update neutral rate estimate. * Ex-BOJ officials doubt bank will give clear-cut estimate. * BOJ may stress neutral rate is at least 1%, higher, JPM says. By Leika Kihara.
Germany's economic recovery will remain subdued next year as exports struggle and global trade slows, according to a forecast by the German Economic Institute IW seen by Reuters on Friday. The IW forecasts Germany's real gross domestic product to grow only slightly this year, by 0.1%, before hitting 0.9% next year, marking a notable increase after two years of contraction.
* U.S. 10-year Treasury yields at near two-week high. * U.S. unemployment benefit claims drop to over three-year low. * PCE data for September due at 1500 GMT. By Ishaan Arora.
A look at the day ahead in European and global markets from Kevin Buckland. Bets for a U.S. Federal Reserve rate cut next week sit unequivocally at the centre of the market's focus right now, as does the murkiness of the economic data Fed officials depend on to make their policy decisions.
A look at the day ahead in European and global markets from Kevin Buckland. Bets for a U.S. Federal Reserve rate cut next week sit unequivocally at the centre of the market's focus right now, as does the murkiness of the economic data Fed officials depend on to make their policy decisions.
Fastly, Inc. (FSLY) today announced the pricing of its offering of $160,000,000 aggregate principal amount of 0% convertible senior notes due 2030 in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The notes will be senior, unsecured obligations of Fastly.
* US 10-year Treasury yields at near two-week high. * US unemployment benefit claims drop to over three-year low. * PCE data for September due at 1500 GMT. By Ishaan Arora. Dec 5 - Gold held flat on Friday, as higher U.S. Treasury yields blunted the lift from a weaker dollar, with investors awaiting key inflation data for signals on the Federal Reserve's path ahead of next week's meeting.
The Reserve Bank of Australia will hold its cash rate at 3.60% on Tuesday and keep it there through 2026, according to a Reuters poll, a shift from last month when a majority of economists expected at least one rate cut next year.
Global shares gained on Friday, after key U.S. economic data solidified investor expectations of a Federal Reserve rate cut next week, a likelihood that weighed on the dollar and boosted gold. Wall Street stocks finished higher and notched a second straight week of gains, with communication services, consumer discretionary, and technology leading the pack.
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