U.S. interest rate futures on Friday raised odds of rate cuts by the Federal Reserve in ?June after a report that showed ?inflation rose less than expected in January. Futures on the federal ?funds rate, which measure the cost of unsecured ?overnight loans between banks, priced in ?a nearly 70% ?chance that the Fed will resume cutting interest rates at ?the June meeting.
?The U.S. dollar ?was mostly flat against peer ?currencies on ?Friday ?after data showed ?a less than ?expected increase in inflation in ?January, ?suggesting ?the Federal Reserve could continue holding rates in ?the near ?term while the Japanese yen was set for ?its ?strongest weekly ?gain in a ?year.
Investors were cautious pre-bell Friday as the recent downturn in tech stocks roiled world markets. Dow Futures were down 0.2%, while S&P 500 futures fell 0.2%, and Nasdaq futures were 0.3% lower. January CPI cooled to 2.4% year-on-year from 2.7% in December, with the core inflation reading edging down to 2.5% y/y from 2.6% previously. The downward drift followed broad losses a day earlier.
The US seasonally adjusted consumer price index, a measure of inflation, rose by 0.2% in January, below expectations for a 0.3% increase and following a 0.3% gain in December, according to data released Wednesday by the Bureau of Labor Statistics. Core CPI, which excludes food and energy prices, rose by 0.3%, in line with the consensus estimate for a 0.3% increase.
U.S. stock index futures pared declines on Friday after a softer-than-expected inflation ?report kept the Federal ?Reserve on track to deliver interest ?rate cuts this year. A Labor Department ?report showed the Consumer ?Price ?Index rose 2.4% on a yearly basis, ?less than the ?estimate of a 2.5% increase, according to economists polled ?by Reuters.
U.S. consumer prices increased less than expected in January amid cheaper gasoline and a moderation in rental inflation, but households faced higher costs for services, suggesting little urgency for the?Federal Reserve to resume cutting interest rates before summer.
* Consumer price index increases 0.2% in January. * CPI excluding food and energy rises 0.3% * Core CPI advances 2.5%, smallest gain in nearly five years. By Lucia Mutikani.
Russia's central bank Friday said its Board of Directors decided to cut the key rate by 50 basis points to 15.50% as the economy continues to return to a balanced growth path. The market consensus was for the CBR to remain on hold, wrote Commerzbank in a note before the policy decision.
* Wall St futures off 0.2% after selloff. * Traders await US CPI print. * Gold, silver rebound. * Oil prices drop further. By Stella Qiu and Lucy Raitano. Global shares slipped on Friday ahead of key U.S. inflation data, easing from record highs as concerns over shrinking margins at major tech companies and worries about AI-driven disruption lingered after a week of selling.
* Yen up more than 2% against the dollar this week. * 'Buy Japan' narrative gathers steam in sentiment shift. * Dollar on guard ahead of US CPI data. By Amanda Cooper.
The US dollar rose against its major trading partners early Friday ahead of the release of consumer price index data for January at 8:30 am ET, when both overall prices and core prices, which exclude food and energy, are forecast to rise by 0.3%. The only other data expected on Friday is an update to the St. Louis Federal Reserve's gross domestic product Nowcast estimate around midday.
Brazil's ?retail sales volumes fell in ?December from the previous ?month, data from the government ?statistics agency IBGE ?showed ?on Friday, as Latin America's largest ?economy shows ?signs of cooling amid high interest rates. * Sales ?were down ?0.4% ?in December from November, a steeper drop than the 0.2% ?decline expected by ?economists in a Reuters poll.
* All precious metals set for weekly losses. * ANZ raises gold price forecast to $5,800/oz for Q2. * US CPI data due at 8:30 a.m. ET. By Pablo Sinha. Gold rose on Friday, regaining ground after Thursday's ?near one-week low, as bargain-hunters stepped in, with investors ?keeping an eye on key U.S. inflation data due later in the day for cues on the Federal ?Reserve's policy outlook.
The benchmark US stock measures were pointing lower before the open Friday as traders await a key inflation report. The S&P 500, the Dow Jones Industrial Average and the Nasdaq each slipped 0.3% in premarket activity. The consumer price index report for January, which was delayed due to a partial federal government shutdown that ended last week, is scheduled for an 8:30 am ET release.
The Senate Banking Committee will proceed with confirmation hearings for Kevin Warsh, President Donald Trump's pick to head the Federal Reserve, despite a key senator's hold on the nomination, Treasury Secretary Scott Bessent said on Friday. "I think it is important that we get ?to the hearings.
The Senate Banking Committee has agreed ?to move forward ?with confirmation hearings for Kevin ?Warsh, President Donald ?Trump's nominee to ?head ?the Federal Reserve, despite a ?key senator's ?hold on the nomination, U.S. Treasury ?Secretary Scott ?Bessent ?said on Friday. "I think it is important ?that we get ?to the hearings.
Amplify ETFs, a leading provider of breakthrough ETF solutions, announces the filing of the Amplify Municipal CEF High Income ETF. The Amplify Municipal CEF High Income ETF seeks investment results that generally correspond to the price and yield of the Nasdaq Municipal Bond CEF High Income? Index.
Feb 13 - Everything Mike Dolan and the ROI team are excited to read, watch and listen to over the weekend. From the Editor. Hello Morning Bid readers! Meanwhile, expectations for Federal Reserve interest rate cuts were jostled this week by a somewhat surprising mix of U.S. economic data.
* Euro gains 0.3% against pound, most since December. * UK GDP growth stalls, impacting investor confidence. * Options traders bullish on euro against pound since September. By Amanda Cooper.
* Trade surplus shrinks, despite lower energy imports. * US tariffs taking their toll. * Growth holding up as domestic economy resilient. * German spending to hold up overall growth. By Balazs Koranyi.
Wall Street futures edged modestly lower pre-bell Friday as traders mulled emergent artificial intelligence's role in disrupting enterprise, and awaited an official inflation report.
* ECB says ESMA should lead supervision of top 15 funds. * Call is part of ECB push for capital markets union. * ECB warns of 'blind spots' in national supervision. * Asset managers have a growing role in lending.
* AI disruption fears hit industries, investors eye next shoe to drop. * Walmart (WMT) earnings in focus after retailer tops $1 trillion in market cap. * Economic data due include PCE inflation gauge, Q4 GDP. By Lewis Krauskopf.
U.S. equity funds recorded outflows in the week to February 11 on worries over AI-related corporate spending ?and as a stronger jobs ?report dampened expectations of Federal Reserve rate cuts. Investors exited a ?net $1.42 billion worth of U.S. equity funds ?during the week in their ?first weekly ?net sales since January 21, LSEG Lipper data showed.
* Gold and silver set for weekly gain. * Platinum, palladium poised for weekly losses. * US CPI data due at 8:30 a.m. ET. By Pablo Sinha. Gold rose more than 1% on Friday, rebounding from Thursday's near ?one-week low, as bargain-hunters stepped in, with investors keeping ?an eye on key U.S. inflation data due later in the day for cues on the Federal Reserve's policy ?outlook.
U.S. equity funds recorded outflows in the week to February 11 on worries over AI-related corporate spending ?and as a stronger jobs ?report dampened expectations of Federal Reserve rate cuts. Investors exited ?a net $1.42 billion worth of U.S. equity funds ?during the week in their ?first weekly ?net sales since January 21, LSEG Lipper data showed.
* * Bank signals more cuts to come. * Bank raises inflation forecast for 2026. * Bank cuts oil price forecast for 2026 by $10. By Elena Fabrichnaya. MOSCOW, Feb 13 - Russia's central bank cut its key interest rate by 50 basis points to 15.5% on Friday and signalled ?that rates could fall further in a bid to shore up the slowing ?wartime economy, which is struggling with high borrowing costs.
China's new bank lending jumped in January from the previous month but was below expectations and far short of the record level a year earlier, as subdued credit demand continued to weigh on borrowing in the world's second-largest economy.
The EU's trade surplus kept shrinking, data showed on Friday, as tariffs weighed on exports to the U.S. and rising Chinese imports crowded out domestic production, highlighting existential threats to the bloc's economic model.
The EU's trade surplus kept shrinking, data showed on Friday, as tariffs weighed on exports to the U.S. and rising Chinese imports crowded out domestic production, highlighting existential threats to the bloc's economic model.
* Yen up more than 2% against the dollar this week. * 'Buy Japan' narrative gathers steam in sentiment shift. * Dollar on guard ahead of US CPI data. By Amanda Cooper.
China's new bank lending jumped in January from the previous month but came in below expectations and far short of the record level a year earlier, as subdued credit demand continued to weigh on borrowing in the world's second-largest economy.
* Gold set for weekly gain of 0.4% * Silver on track for weekly gain of 0.7% * Platinum, palladium also poised for weekly losses. * US consumer price index data due at 8:30 a.m. ET. By Ishaan ?Arora.
Sweden's January ?inflation came in ?lower than ?expected underlining the ?downside risks ?to inflation ?in the Nordic ?country, ?central bank Deputy Governor Per ?Jansson ?said ?on Friday. "I have seen increased ?downside risks ?to underlying inflation," Jansson told reporters.
Much of Asia will be off to celebrate the Lunar New Year as the year of the fire horse begins, a rare combination said to pair elements of energy with volatility. Markets will hope for signs of the former from consumer bellwether Walmart's (WMT) results, while European miners' earnings face plenty of the latter in commodity markets.
Euro area benchmark Bund yields hit a fresh two-month low on Friday and were set ?for their biggest weekly drop since ?March ahead of U.S. economic data due later in the ?session. Markets have been tracking U.S. Treasuries, but ?the European Central Bank is expected ?to keep ?policy on hold this year.
* Gold set for weekly loss of 0.2% * Silver on track for weekly loss of 2.1% * Platinum, palladium also poised for weekly losses. * US consumer price index data due at 08:30 am ET. By Ishaan ?Arora.
By Junko Fujita. Yields on short-term Japanese government bonds recovered some early losses on Friday, following ?remarks from a hawkish Bank of ?Japan board member, as the market reacted to the prospect of tighter policy. The ?benchmark 10-year JGB yield fell 1 basis point to 2.22%, after ?initially dipping as much as 3.5 basis ?points at 2.195% ?earlier in the session.
* Yen up more than 2% against the dollar this week. * 'Buy Japan' narrative gathers steam in sentiment shift. * Dollar on guard ahead of US CPI data. By Jiaxing Li and Rae Wee.
U.S. consumer prices likely maintained a steady pace of increase in January as businesses raised prices at the start of the year, which together with a stabilizing labor market could allow the Federal Reserve to keep interest rates unchanged for a while.
China's new home prices extended ?their decline in ?January, official data ?showed on Friday, indicating ?weak demand that ?would ?further weigh on ?the country's cash-strapped ?developers. Prices fell 0.4% month-on-month, matching ?the ?previous month's ?decline, according to Reuters calculations based on National ?Bureau of Statistics ?data.
The U.S. dollar was mostly flat against peer currencies on Friday after data showed a less-than-expected increase in inflation in January, suggesting the Federal Reserve could continue to hold rates steady in the near term. The Japanese yen was set for its strongest weekly gain ?in about 15 months.
Japanese government bond yields fell on Friday as Finance Minister Sastsuki Katayama's recent remarks eased fiscal ?concerns, while market participants awaited comments ?from a hawkish Bank of Japan board member later in ?the day. The benchmark 10-year JGB yield fell ?3 basis points to 2.200%. The ?two-year yield ?slipped 1 bp to 1.29%. Yields move inversely to bond ?prices.
* Yen up nearly 3% against the dollar this week. * 'Buy Japan' narrative gathers steam in sentiment shift. * Dollar on guard ahead of US CPI data. By Rae Wee and Jiaxing Li. The yen was set for its best week in almost 15 months on Friday, having climbed steadily after Japanese Prime Minister Sanae Takaichi's historic election win allayed ?investor worries about the nation's fiscal health.
The Federal Reserve's current monetary-policy setting threatens U.S. economic growth that otherwise is being "underwritten" by a range of Trump administration policies including tax cuts, Fed Governor Stephen ?Miran said on Thursday as he ?again laid out the case for more interest-rate cuts.
The Federal Reserve's current monetary-policy setting threatens U.S. economic growth that otherwise is being "underwritten" by a range of Trump administration policies including ?tax cuts, Fed Governor Stephen Miran said ?on Thursday as he again laid out the case for more interest-rate cuts.
* Japan out of deflation, economy in different phase from Abe era. * Govt does not need to fill BOJ openings with reflationists. * BOJ may see scope to raise rates this year, March premature. * Takaichi's nominees seen as test to her approach on BOJ policy. By Yoshifumi Takemoto.
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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