Global stocks advanced on Tuesday for a second straight session, even as the war in Iran kept driving up oil prices and ahead of a flurry of policy announcements from global central banks this week. Israel said it killed Iran's security chief, while a senior Iranian official said the new supreme leader rejected de-escalation offers conveyed by intermediaries.
* Reserve Bank of Australia expected to hike rates at 0330 GMT. * Fed, ECB, BOJ, BOE all due to weigh in on economic outlook this week. * Brent crude above $100 as Trump's call for Hormuz escorts rebuffed. By Gregor Stuart Hunter.
U.S. average retail diesel prices crossed $5 a gallon for only the second time ever on Monday as the war in the Middle East squeezes supplies of the industrial fuel, according to fuel markets tracker GasBuddy.
U.S. Secretary of State Marco Rubio said on a phone call with South Korean Foreign Minister Cho Hyun on Monday that cooperation among countries to secure safety in the Strait of Hormuz is more important than ever to stabilize the global economy and oil prices, Seoul said.
US equity indexes closed higher on Monday as oil prices and Treasury yields fell amid reports of easing shipment disruption in the Strait of Hormuz and the US government urging allies to join its efforts to address the Middle East energy crisis. Several tankers passed through the Strait successfully over the weekend, according to Bloomberg.
* Oil prices ease further after Bessent comments. * Central bank meetings eyed for inflation views. * US stocks higher, led by AI-related companies. By Chuck Mikolajczak. Global stocks rallied on Monday as oil prices eased, though the surge in crude prices this month is likely to shift the inflation outlook and lead most central banks to hold rates steady at their policy meetings this week.
The Toronto Stock Exchange closed higher on Monday for the first time in four sessions on bargain hunting and signs that inflation is under control here, at least for now, though some observers noted the February CPI data was "already somewhat outdated" and "stale on arrival" given the likely impact that current geopolitical tensions will have on future readings.
* Treasuries yields fall as oil prices retreat, equities rebound. * Iran conflict's impact on bond market remains uncertain. * Fed rate cut expectations reduced amid inflation concerns. * US one-year inflation swaps dip, but still elevated. By Gertrude Chavez-Dreyfuss.
Financial stocks were advancing in late Monday afternoon trading, with the NYSE Financial Index rising 1.2% and the State Street Financial Select Sector SPDR ETF up 0.9%. The Philadelphia Housing Index was adding 1.1%, and the State Street Real Estate Select Sector SPDR ETF gained 1%. Bitcoin was increasing 1.9% to $74,168, and the yield for 10-year US Treasuries dropped 6.5 basis points to 4.2...
US equity indexes rose ahead of the close on Monday as Treasury yields declined and oil prices fell on reports that the US will soon announce a coalition of countries to help ease the transit of energy in the Middle East.
US industrial production increased more than expected in February, data from the Federal Reserve showed Monday, while Oxford Economics warned that the ongoing US-Israel war with Iran poses risks ahead. Industrial output rose 0.2% last month, marking its fourth consecutive month of growth, but slowing from a 0.7% gain in January.
* Oil prices ease further after Bessent comments. * Central bank meetings eyed for inflation views. * US stocks higher, led by AI-related companies. By Chuck Mikolajczak. Global stocks rallied on Monday as oil prices pulled back, though a previous surge in crude prices is likely to sway the inflation outlook and cause most central banks to hold rates steady at their policy meetings this week.
Financial stocks were advancing in late Monday afternoon trading, with the NYSE Financial Index rising 1.2% and the State Street Financial Select Sector SPDR ETF up 0.9%. The Philadelphia Housing Index was adding 1.1%, and the State Street Real Estate Select Sector SPDR ETF gained 1%. Bitcoin was increasing 1.9% to $74,168, and the yield for 10-year US Treasuries dropped 6.5 basis points to 4.2...
* Dollar pulls back slightly, still near 10-month high. * Fed, ECB, BoE, BOJ among central banks to meet this week. * Focus on inflation, growth outlook as Middle East war drags on. * RBA expected to hike rates. By Chibuike Oguh.
The Federal Reserve's updated economic projections due later this week will likely continue to signal one interest rate cut in 2026 amid uncertainty around the impact of the Middle East conflict, UBS Securities said in a note e-mailed on Monday. The Federal Open Market Committee kicks off its two-day policy meeting on Tuesday, with a decision on interest rates due the following day.
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Financial stocks were advancing in Monday afternoon trading, with the NYSE Financial Index rising 1.2% and the State Street Financial Select Sector SPDR ETF up 0.8%. The Philadelphia Housing Index was adding 1%, and the State Street Real Estate Select Sector SPDR ETF gained 1.1%. Bitcoin was increasing 3.5% to $74,237.5, and the yield for 10-year US Treasuries was dropping 6.3 basis points to 4...
Financial stocks were advancing in Monday afternoon trading, with the NYSE Financial Index rising 1% and the State Street Financial Select Sector SPDR ETF up 0.7%. The Philadelphia Housing Index was adding 0.8%, and the State Street Real Estate Select Sector SPDR ETF gained 1.1%. Bitcoin was increasing 3.1% to $73,976.7, and the yield for 10-year US Treasuries was dropping 5.9 basis points to 4...
* Powell says investigation a threat to Fed's independence. * Judge sees no evidence of Powell wrongdoing. President Donald Trump's administration has asked a judge to reconsider his ruling that has effectively blocked a criminal investigation into U.S. Federal Reserve Chair Jerome Powell, according to court documents made public on Monday.
* FTSE 100 up 0.6%, FTSE 250 down 0.2% * Close Brothers drops after Viceroy Research reveals short position. * British consumer confidence hits lowest since last year. London's FTSE 100 rose on Monday as falling oil prices lifted sentiment across stock markets, with investors also keeping a close eye on the Bank of England's rate decision due later this week.
* Temporary oil price spike could be looked through by cbanks. * Prolonged Iran conflict could trigger economic, market damage. * Higher rates would impact fiscally stretched governments. By Marc Jones.
Broad Market Indicators. Broad-market exchange-traded funds IWM and IVV were higher. US equity indexes rose in midday trading on Monday while Treasury yields declined after better-than-expected economic data. Energy. IShares US Energy ETF and the State Street Energy Select Sector SPDR each rose about 0.3%. Technology.
Bond investors have shifted to a defensive stance since the Middle East war injected fresh risk into markets, with many loading up on short-term U.S. Treasuries ahead of the Federal Reserve's monetary policy decision.
The February Labour Force Survey painted a rather bleak picture on Friday for the Canadian jobs market, said UBS. Employment slipped further in February, adding to an already weak January, and the declines were broad-based across sectors, wrote the bank in a note to clients.
US equity indexes rose in midday trading on Monday while Treasury yields declined after better-than-expected economic data. The Nasdaq Composite rose 1.1% to 22,348.5, with the S&P 500 up 0.8% to 6,689.2. The Dow Jones Industrial Average gained 0.7% to 46,889. Most sectors were in the green with technology and consumer discretionary sectors leading the gainers.
Canada's inflation cooled in February, but that is backward-looking now that prices at the pump have skyrocketed in the wake of the United States/Israeli war with Iran, said TD. The bank expects higher energy costs will lift the headline consumer price index close to 3% year over year in the months ahead, but the effect on the Bank of Canada's core measures should be more modest.
Americans' attempts to tap new credit rose to their highest level in nearly four years as of February, new data from the Federal Reserve Bank of New York released on Monday said. The bank said, as part of its latest Survey of Consumer Expectations Credit Access report, that applications for new credit were at their highest level since October 2022.
Canadian bond yields fell as the downside surprises on Monday, lowered the odds of the Bank of Canada hiking this year, said CIBC after the release on the February consumer price index. The "before" picture of Canadian inflation ahead of the oil price shock should give the Bank of Canada some comfort, as it looked tame overall, noted CIBC.
Americans' attempts to tap new credit rose to their highest level in nearly four years as of February, new data from the Federal Reserve Bank of New York released on Monday said. As survey respondents flagged a rise in demand for credit, they met fewer headwinds in securing it. That said, over the last year borrowers faced a record high level of lenders closing accounts.
Monday's Canadian consumer price index release is already somewhat outdated, given how much the outlook has shifted following the conflict in the Middle East, said National Bank of Canada. Still, it provides a snapshot of how price dynamics were evolving heading into the conflict, and the picture is "encouraging," noted the bank.
* Oil prices ease further after Bessent comments. * Central bank meetings eyed for inflation views. * US stocks higher, led by AI companies. By Chuck Mikolajczak.
* Manufacturing output increases 0.2% in February. * Homebuilder sentiment edges up in March. * Middle East conflict could raise operating costs. By Lucia Mutikani. U.S. factory production increased marginally in February as manufacturing remained constrained by tariffs on imports, and the conflict in the Middle East could raise operating costs.
Canada's consumer price index rose 0.5% month over month in February, "mild" enough to chop the headline inflation rate five ticks to 1.8% year over from 2.3%, said Bank of Montreal after Monday's CPI data.
* Dollar pulls back slightly, still near 10-month high. * Fed, ECB, BoE, BOJ among central banks to meet this week. * Focus on inflation, growth outlook as Middle East war drags on. * RBA expected to hike rates. By Chibuike Oguh.
At Wednesday's policy meeting, RBC expects the Bank of Canada to recognize "growing external uncertainty" around the oil price, but continue to hold the overnight rate at its current, borderline accommodative level of 2.25%. These comments Monday from RBC come as it noted data released earlier today showed Canadian headline inflation slowed to 1.8% year over year in February.
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Multiple municipal bond offerings this week have a high exposure to climate risk, specifically high Flood and Extreme Heat Scores, according to ICE Climate Data. A $9 million offering from Northern Tioga School District, Pa., records a Flood Score of 5.0 out of 5.0, ICE reports.
Affiliated investment vehicles hold more than 1 million shares across GSE securities, including in excess of 700,000 shares of Freddie Mac common stock Oksenholt Capital Management LLC said affiliated investment vehicles collectively hold more than one million shares of Government-Sponsored Enterprise securities.
As expected, housing starts increased last month after January's weather impacted print, TD Economics said Monday. TD also noted that so far in Q1 starts are down about 4%, not annualized, compared with their Q4 level, "boosting the risk that starts act as a drag on residential investment" in Q1 gross domestic product growth.
The latest inflation data reinforces the view that underlying inflation was "very weak" heading into the oil price shock and, as a result, the Bank of Canada "should be able to look through the rise in energy prices for some time", said Royce Mendes over at Desjardins on Monday. Desjardins continues to believe that central bankers will leave rates unchanged until well into 2027.
U.S. factory production increased marginally in February as manufacturing remained constrained by tariffs on imports, and the conflict in the Middle East could raise operating costs. Other data on Monday showed sentiment among single-family homebuilders nudging up in March.
By Jamie McGeever. This is a historic week in the world of monetary policymaking. None of these central banks - the Federal Reserve, European Central Bank, Bank of England and Bank of Japan - are expected to raise interest rates this week.
The before picture of Canadian inflation ahead of the oil price shock should give the Bank of Canada "some comfort", as it looked "tame overall", said CIBC after the release of consumer price index data for February on Monday.
* Oil volatile as Hormuz shipping plans lack detail. * Host of central banks seen warning on inflation, growth. * US stock futures, Asia shares slightly higher, Europe flat. * Dollar off highs, still near major chart levels. By Alun John and Wayne Cole.
The Canadian consumer price index rose 1.8% on a year-over-year basis in February, following a 2.3% year-over-year increase in January, said the country's statistical agency on Monday. February's 1.8% year over year CPI was a tad lower than the 1.9% year-over-year consensus forecast provided by Scotiabank.
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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