Euro zone government bond yields edged up and traders increased their bets on future European Central Bank rate hikes, following the ECB's widely anticipated decision to keep rates unchanged. Germany's 10-year yields, the euro area's benchmark, were up 1.5 basis points at 2.88%. They hit 2.894% last week, their highest level since mid-March.
The European Central Bank kept its policy rates steady on Thursday and revised upwards some of its growth and inflation projections, a move that probably closes the door to further cuts in borrowing costs in the near term.
Inflation picked up again in November, marking a third consecutive increase and reviving investor concerns that the central bank may be forced into an extended pause in its easing cycle. The Consumer Price Index rose 3.1% year-over-year in November 2025, hitting the highest inflation rate since May 2024, the Bureau of Labor Statistics reported Thursday.
The European Central Bank kept interest rates unchanged as expected on Thursday and raised some of its growth and inflation projections, likely solidifying investor bets that no further rate cuts are coming.
Following is the statement from the European Central Bank following its policy meeting. The Governing Council today decided to keep the three key ECB interest rates unchanged. Its updated assessment reconfirms that inflation should stabilise at the 2% target in the medium term.
* Markets look for catalysts from key central bank decisions. * BoE cuts rates in tight 5-4 vote. * Trump says next Fed chair to favour lower rates 'by a lot' By Rocky Swift and Samuel Indyk.
Senior Unsecured Notes are Rated Investment Grade CION Investment Corporation (CION) announced today that it closed an offering of $172.5 million in aggregate principal amount of its senior unsecured notes, consisting of $125 million in aggregate principal amount of its senior unsecured notes due 2029, and $47.5 million in aggregate principal amount of its senior unsecured notes due 2027.
The US dollar rose against its major trading partners early Thursday, except for a decline versus the pound, ahead of the release of weekly jobless claims, delayed consumer price index data for November and the Philadelphia Federal Reserve's manufacturing reading for December, all at 8:30 am ET.
* * Central bank says future decisions will be closer calls. * BoE's Bailey expects inflation back near 2% by May 2026. * Sterling rises, gilt yields increase after BoE decision. * Economists see limited rate cuts in 2026 as economy weakens. By William Schomberg, Andy Bruce, Suban Abdulla and David Milliken.
* Central bank maintains high interest rates amid global easing cycles. * Upcoming elections could influence monetary policy outlook. * Rally powered by financials and resource-focused names. * Fiscal risks remain despite investor confidence. By Nikhil Sharma.
* Investors reduce bets on ECB rate hikes after Schnabel's remarks fade. * German finance agency to announce 2026 bond issuance plans. * Italy's bond yield gap with Bunds hits 16-year low. By Stefano Rebaudo. Euro zone government bond yields edged down on Thursday, with investors bracing for the European Central Bank to reaffirm its higher-for-longer rate stance later in the day.
The Bank of England cut interest rates on Thursday after a narrow vote by policymakers but it signalled that the already gradual pace of lowering borrowing costs might slow further.
Sterling has continued to trade at weaker levels ahead of Thursday's Bank of England policy meeting following the release earlier in the week of the much weaker-than-expected United Kingdom consumer price index report for November, said MUFG.
Brazil's central bank on Thursday projected inflation at a lower level but still exceeding its target in the horizon guiding its January interest rate decision, with convergence to the 3% goal only from 2028 onward. In its quarterly monetary policy report, the bank pegged inflation at 3.2% in the third quarter of 2027, down from the 3.3% forecast in September.
By Marc Jones, Global Markets Correspondent. Investors' top focus today is the delayed - and slightly unusual -? U.S. consumer price inflation report, which will be an important marker for whether the Federal Reserve is likely to keep cutting interest rates next year. I'll get into all the market news below.
By Marc Jones, Global Markets Correspondent Investors' top focus today is the delayed - and slightly unusual - U.S. consumer price inflation report, which will be an important marker for whether the Federal Reserve is likely to keep cutting interest rates next year. I'll get into all the market news below. Today's Market Minute.
Commerzbank in its "European Sunrise" note of Thursday highlighted: Markets: United States Treasury yields decline in late New York session and open lower in Asia. Fed: Atlanta Federal Reserve President Raphael Bostic says inflation is more worrying than jobs, while it's a close call.
US futures were tracking higher hours before Thursday's market open, as technology stocks stabilize while traders await inflation data from November's Consumer Price Index. In the futures, the S&P 500 was 0.4% higher, the Nasdaq was up 0.8%, and the Dow Jones advanced by 0.2% Asian markets were mixed at Thursday's close, while most European bourses were edging higher mid-session.
Wall Street's main indexes closed higher on Thursday as a soft inflation report fed expectations for interest rate cuts by the Federal Reserve, while chipmaker Micron's blowout forecast?signaled strong AI demand. The Consumer Price Index report showed that consumer prices increased less than expected in the year to November.
Brazil's central bank on Thursday projected inflation at 3.2% in the third quarter of 2027, a key horizon for its closely watched January interest rate decision, according to a quarterly monetary policy report.
Euro zone government bond yields were steady on Thursday, with investors bracing for the European Central Bank to reaffirm its higher-for-longer rate stance later in the day. Investors pared back bets on future ECB rate hikes earlier this week as the impact of recent remarks by ECB board member Isabel Schnabel faded.
Societe Generale in its early Thursday economic news summary pointed out: -- Major currencies rangebound before European Central Bank, Bank of England, European Union Council summit. -- Japan: international investors bought net 1.41 trillion yen of Japanese government bonds last week, the most in eight months. -- Day ahead: ECB forecast to stay on hold, to raise gross domestic product estimate.
Asian stocks were mixed Thursday as investors awaited results of various central banks' year-end policy meetings. The Bank of Japan is widely expected to announce a rate increase on Friday, potentially taking borrowing costs to their highest level in three decades.
* FTSE 100 up 0.3%; FTSE 250 up 0.36% * Investors await BoE rate cut amid cooling inflation. * FTSE 350 retailers lead gains; Currys up 10.7% Dec 18 - London stocks extended gains on Thursday, as investors anticipated a Bank of England interest rate cut later in the day amid a sharp slowdown in inflation and signs of weakening economic growth.
* Markets look for catalysts from key central bank decisions. * Surprise weakness in UK inflation firms case for BOE rate cut. * Trump says next Fed chair to favour lower rates 'by a lot' By Rocky Swift and Samuel Indyk. LONDON, Dec 18 - The dollar inched higher against its major counterparts on Thursday as markets positioned for central bank decisions in Britain, Europe and Japan.
* Stocks edge up in cautious trade, focus on tech. * Oil extends gains on Trump's Venezuela blockade. * BOE, ECB set to decide on rates. * US CPI report for November due later on Thursday. By Stella Qiu and Amanda Cooper.
Austria's economy is expected to moderately grow in 2026, helped by private and public consumption, despite the sluggish global economic environment, two economic institutes said on Thursday. The WIFO institute expects gross domestic product to grow by 1.2% in 2026 and 1.4% in 2027. Similarly, the IHS institute foresees economic growth of 1.0% next year and 1.1% in 2027.
* Central bank leaves policy interest rate on hold. * 2025 economic growth forecast raised on export boom. * Taiwan-made chips have powered AI boom, boosted economy. * Taiwan trade surplus with US more than doubles. By Liang-sa Loh and Faith Hung.
* BoE expected to cut rates due to inflation slowdown. * Sterling steady before BoE decision, slight drop against euro. * Some predict further rate cuts through 2026. By Samuel Indyk.
Euro zone government bond yields were steady on Thursday, with investors bracing for the European Central Bank to reaffirm its higher-for-longer rate stance later in the day. Investors pared back bets on future ECB rate hikes earlier this week as the impact of recent remarks by ECB board member Isabel Schnabel faded.
If British growth is sub-par, its labor market weakening and fiscal policy tightening, then the Bank of England looks behind the curve - and should now be playing catch-up to offset tightening real interest rates as inflation tumbles anew.
* Markets look for catalysts from key central bank decisions. * Surprise weakness in UK inflation firms case for BOE rate cut. * Trump says next Fed chair to favour lower rates 'by a lot' By Rocky Swift. TOKYO, Dec 18 - The dollar held gains against its major counterparts on Thursday as markets positioned for central bank decisions in Britain, Europe and Japan.
A look at the day ahead in European and global markets from Tom Westbrook. Markets expect the Bank of England to be the only mover at a slew of central bank meetings on Thursday, with a 25-basis-point rate cut to 3.75% almost as predictable as the top order collapse at the Ashes test in Adelaide.
A look at the day ahead in European and global markets from Tom Westbrook. Markets expect the Bank of England to be the only mover at a slew of central bank meetings on Thursday, with a 25-basis-point rate cut to 3.75% almost as predictable as the top order collapse at the Ashes test in Adelaide.
Cash-strapped China Vanke (CHVKF) kicked off a second meeting with holders of a 2 billion yuan bond on Thursday, as it scrambles to extend its debt payments with bondholders and banks in an effort to avoid a default. A default by Vanke, a state-backed developer, would add an additional weight on a property sector that has been in the doldrums for years.
* Consumer price index is forecast increasing 3.1% year-on-year in November. * No monthly inflation rates will be published after government shutdown prevented collection of data for October. * Limited CPI values for October will be available. By Lucia Mutikani.
* Markets look for catalysts from key central bank decisions. * Surprise weakness in UK inflation firms case for BOE rate cut. * Trump says next Fed chair to favour lower rates 'by a lot' By Rocky Swift. TOKYO, Dec 18 - The dollar held gains against its major counterparts on Thursday as markets positioned for central bank decisions in Britain, Europe and Japan.
U.S. President Donald Trump said on Wednesday the next chairman of the U.S. Federal Reserve will be someone who believes in lower interest rates "by a lot." "I'll soon announce our next chairman of the Federal Reserve, someone who believes in lower interest rates, by a lot, and mortgage payments will be coming down even further," Trump said.
MSCI's global equities gauge rose on Thursday after four days of losses, but Treasury yields dipped after soft U.S. inflation data raised investors' hopes about more Federal Reserve rate cuts. Meanwhile, memory chip maker Micron Technology's (MU) strong results helped to reinvigorate Wall Street's "rollercoaster" sentiment around artificial intelligence stocks.
U.S. President Donald Trump said on Wednesday the next chairman of the U.S. Federal Reserve will be someone who believes in lower interest rates "by a lot." During a national address, Trump said he will soon announce a successor to current Fed chair Jerome Powell.
* Asian shares all in red, with Nikkei down 1.2% * Oil up over 1.5% on Trump's Venezuela blockade. * BOE, ECB, Norges Bank, Riksbank set to decide policy. * US CPI report for November also due on Thursday. By Stella Qiu.
The dollar lost ground against the Japanese yen and Swiss franc on Thursday after data showed a lower-than-expected rise in U.S. inflation, while the euro eased after the European Central Bank held interest rates steady. The U.S. Consumer Price Index rose 2.7% year-on-year in November,?according to Labor Department data, compared with a 3.1% increase forecast by economists polled by Reuters.
* Markets look for catalysts from key central bank decisions. * Yen trims losses as traders bet BOJ will hike on Friday. * Surprise weakness in UK inflation firms case for BOE rate cut. * By Rocky Swift. The dollar held gains against its major counterparts on Thursday as markets positioned for central bank decisions in Britain, Europe and Japan.
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.
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