* US, Canada, Japan, BoE, ECB keep rates on hold. * Central bankers on alert for inflation surge. * Attacks on energy infrastructure mark new phase. * Some analysts speak of rising "stagflation" risk. By William Schomberg and Balazs Koranyi.
Top central banks said on Thursday they stood ready to tackle any surge in inflation with tighter policy, as an escalation in the Iran war put the Middle East's vital energy infrastructure in the line of fire and pushed fuel prices higher.
Major U.S. indexes closed lower, with the Dow Jones Industrial Average dropping 1.6% to 46,225.15, the S&P 500 slipping 1.36% to 6,624.70, and the Nasdaq falling 1.46% to 22,152.42. The Federal Reserve maintained interest rates at 3.50%?3.75% for the third consecutive meeting.
* FOMC maintains policy rate in 3.50%-3.75% range as expected. * Fed funds futures imply U.S. central bank to stand pat all year. * BOJ decision expected 0330-0430 GMT, Governor Ueda to speak at 0630 GMT. By Gregor Stuart Hunter.
Global stocks slumped on Thursday as oil prices spiked after the latest escalation in the U.S. and Israel's war with Iran, while a host of major central banks left interest rates unchanged as they attempt to assess rising price pressure.
Japan's Nikkei share average slipped more than 2% on Thursday, following sharp losses on Wall Street after the U.S. Federal Reserve held interest rates steady, while domestic investors awaited the Bank of Japan's decision due later in the day.
Japanese government bonds fell on Thursday as investors awaited a decision by the central bank and signals for how policymakers will address inflation pressures from surging oil prices. The benchmark 10-year JGB yield rose 3.5 basis points to 2.250%. The five-year yield rose 2 bps to 1.665%. Yields move inversely to bond prices.
Ratings agency Moody's on Wednesday upgraded Bolivia's issuer and senior unsecured ratings to Caa3 from Ca, citing reduced near-term default risks following a political leadership shift in late 2025. Moody's also lifted Bolivia's outlook to positive from stable.
The U.S. Federal Reserve and Bank of Canada both struck hawkish tones on Wednesday in the face of surging energy prices arising from the Iran war, as a heady week of global central bank meetings kicked into full swing.
* Fed and BoC keep interest rates on hold amid inflation concerns. * BoC Governor Macklem warns of persistent inflation if energy prices remain high. * Powell highlights uncertainty over economic effects of higher oil prices. * Australian central bank hiked rates this week to contain inflation. * BOJ, ECB, BoE rate decisions to follow on Thursday. By Promit Mukherjee and Howard Schneider.
* ECB seen holding its key rate at 2% * Energy shock puts hikes back on table. * Lagarde to signal vigilance amid uncertainty. By Francesco Canepa and Balazs Koranyi. The European Central Bank is all but certain to keep interest rates on hold at 2% on Thursday but will make clear it stands ready to raise them if the Iran war fuels a lasting surge in euro zone inflation.
Federal Reserve Chair Jerome Powell on Wednesday described significant challenges in bringing inflation down, from persistent tariff-driven price hikes to Iran war-driven energy price hikes that the U.S. central bank may not be able to "look through" as a transitory shock.
* Middle East conflict cited as key source of uncertainty. * Central bank cuts rates but raises inflation projections. * Policymakers avoid guidance for upcoming meetings. By Marcela Ayres.
The Brazilian central bank will hold a spot dollar auction of up to $1 billion on March 19, and a simultaneous reverse foreign exchange swap auction, it said in separate statements on Wednesday. Both deals start at 9:30 local time, the central bank said. A reverse FX swap, which in this case involves up to 20,000 contracts, is equivalent to buying U.S. dollars in the futures market.
US equity indexes fell on Wednesday as market expectations for interest rate cuts this year slumped following a meeting of the Federal Reserve, and producer prices rose more than forecast in February.
Brazil's central bank cut interest rates by 25 basis points on Wednesday, in line with market expectations that shifted toward a modest start to monetary easing after an oil shock from the U.S.-Israel war against Iran fueled global inflation concerns.
Foreign holdings of U.S. Treasuries rose in January, data from the Treasury Department showed on Wednesday, recovering from a decline in December as investors returned to the market amid generally elevated yields and shifting expectations for Federal Reserve policy. Holdings of U.S. Treasuries grew to $9.305 trillion in January from $9.271 trillion in the previous month.
Wall Street sank and Treasury yields leaped on Wednesday as traders interpreted a spike in oil, hot U.S. producer prices, and underlying signals from the Federal Reserve - even as the central bank stood pat on policy - as signs that interest rates will not be cut again this year.
The Bank of Japan is expected to keep interest rates steady on Thursday, as it awaits more clarity on how the deepening Middle East conflict could affect the trajectory of an import-reliant economy that had already seen inflationary pressure build up.
Wall Street sank and Treasury yields leaped on Wednesday as traders interpreted a spike in oil, hot U.S. producer prices, and underlying signals from the Federal Reserve - even as the central bank stood pat on policy - as signs that interest rates will not be cut again this year.
* BOJ ends 2-day meeting, decision expected 0330-0430 GMT. * Board likely to keep policy rate unchanged at 0.75% * Hawkish board member Takata may repeat proposal for hike. * Governor Ueda to hold press conference at 0630 GMT. By Leika Kihara.
The U.S. central bank held interest rates steady on Wednesday and projected higher inflation, steady unemployment and a single reduction in borrowing costs this year, a path that Federal Reserve Chair Jerome Powell said was subject to unusually high uncertainty as policymakers take stock of the impact of the U.S. and Israeli war with Iran.
US equities retreated on Wednesday after a two-day advance as the Federal Reserve held interest rates steady and upgraded inflation estimates amid the ongoing war in the Middle East. The Dow Jones Industrial Average closed 1.6% lower at 46,225.2, while the Nasdaq Composite dropped 1.5% to 22,152.4. The S&P 500 fell 1.4% to 6,624.70. All sectors ended in the red, led by consumer staples.
* TSX down 1.87%, records worst day in two weeks. * BoC holds rates at 2.25%, opens door to hikes if required. * U.S. Fed leaves rate unchanged, warns of higher inflation. By Rashika Singh and Nivedita Balu.
* Fed maintains rate cut forecast for 2026 despite growth upgrade. * Yield curve steepens slightly post-Fed statement. * Rate futures show reduced easing bets for 2026. By Gertrude Chavez-Dreyfuss. U.S. Treasury yields advanced on Wednesday after the Federal Reserve kept interest rates unchanged, as widely expected, while maintaining its forecast for a single rate reduction in 2026.
* Brent crude futures jump to nearly $110 a barrel. * Stocks fall as oil turns higher, PPI hotter than expected. * Fed keeps rates unchanged. By Chuck Mikolajczak. Global stocks fell on Wednesday, extending declines after the Federal Reserve kept interest rates unchanged, while a rise in crude prices and an earlier reading on U.S. inflation kept equities under pressure.
The Toronto Stock Exchange slumped Wednesday on mixed commodity prices, but also as updates from the Bank of Canada and then the U.S. Federal Reserve appear to have left investors across North America more dazed and confused than they were going in to today given the uncertainty around how long the Middle East war will continue.
The parent of New York's Metropolitan Opera fell deeper into junk-bond status this week, while the New School university has a lower investment-grade rating.
US equity indexes closed lower on Wednesday after economic data pointed to persistent inflation, while oil prices rose. * US producer price index for final demand increased 0.7% in February, up from 0.5% in January, and above the 0.3% forecast by analysts polled by Bloomberg.
Speakers include White House NEC Director Kevin Hassett, Anthropic Co-Founder Jack Clark, Citadel CEO Ken Griffin, Senior White House AI Advisor Sriram Krishnan, Deutsche Bank CEO Christian Sewing, Bank of France Governor Fran?ois Villeroy de Galhau, Honeywell CEO Vimal Kapur, Barclays CEO C.S. Venkatakrishnan, Senator Mark Kelly, White House Cyber Director Sean Cairncross, Iberdrola CEO Pedro...
U.S. national debt will hit $39 trillion on March 25, 2026, growing at $7.23 billion per day as the Iran war added $12 billion in costs during the first two weeks. Total gross national debt will reach $39 trillion, equivalent to $113,638 per person or $288,283 per household.
U.S. national debt will hit $39 trillion on March 25, 2026, growing at $7.23 billion per day as the Iran war added $12 billion in costs during the first two weeks. Total gross national debt will reach $39 trillion, equivalent to $113,638 per person or $288,283 per household.
Currently, it's a Goldilocks market, said Kim Olsan, senior fixed income portfolio manager at NewSquare Capital: "Just right enough for just enough people, and steady [enough] that there doesn't seem to be any [big] price pressure at the moment."
* Crude prices reverse losses; Brent last up over 5% * Fed holds rates steady, as expected. * Micron climbs ahead of report. By Noel Randewich and Utkarsh Hathi. Wall Street ended lower on Wednesday after the Federal Reserve held U.S. interest rates steady and projected only a single rate cut for the year as officials took stock of economic risks from the U.S. and Israeli war with Iran.
Klarna Group PLC (KLAR) shares are trading lower on Wednesday afternoon after the Federal Reserve left interest rates unchanged at 3.50% to 3.75% for a third straight meeting, while signaling that inflation could remain firmer than previously expected. The central bank said economic activity continues to expand at a solid pace, but noted job gains have stayed low and inflation remains somewhat elevated.
Federal Reserve Chair Jerome Powell said on Wednesday that the current U.S. economic situation, even with the Iran war-induced spike in energy prices was far removed from the "stagflation" of the 1970s, with current inflation only one percentage point above target and low unemployment. I would reserve the term stagflation for, you know, a much more serious set of circumstances.
Financial stocks fell in late Wednesday afternoon trading with the NYSE Financial Index decreasing 0.8% and the State Street Financial Select Sector SPDR ETF shedding 1%. The Philadelphia Housing Index declined 2.2%, and the State Street Real Estate Select Sector SPDR ETF lost 1.2%. Bitcoin dropped 3.5% to $71,374, and the yield for 10-year US Treasuries rose 5.7 basis points to nearly 4.26%. I...
The impact of the conflict in the Middle East and the resulting oil price shock is unclear, and the Federal Open Market Committee is taking a "wait-and-see" approach, Federal Reserve Chair Jerome Powell said Wednesday at a press conference.
Generative artificial intelligence tools will certainly contribute to productivity gains for years to come, Federal Reserve Chair Jerome Powell said on Wednesday but urged caution on whether AI's impact will be disinflationary.
XRP fell 4% while Cardano dropped 5% on Wednesday as the Federal Reserve held rates at 3.50%-3.75% and raised 2026 inflation expectations to 2.7% from 2.4%. XRP trades trapped between Supertrend resistance at $1.5890 and support near $1.20.? All four EMAs remain bearishly stacked above price, with the 20 EMA at $1.4285, 50 at $1.5068, 100 at $1.6978, and 200 at $1.9518. Price hasn?t tra...
Financial stocks fell in late Wednesday afternoon trading with the NYSE Financial Index decreasing 0.8% and the State Street Financial Select Sector SPDR ETF shedding 1%. The Philadelphia Housing Index declined 2.2%, and the State Street Real Estate Select Sector SPDR ETF lost 1.2%. Bitcoin dropped 3.5% to $71,374, and the yield for 10-year US Treasuries rose 5.7 basis points to nearly 4.26%. I...
Affirm Holdings Inc (AFRM) shares are trading lower Wednesday afternoon as investors weigh a fresh Federal Reserve policy decision that kept interest rates unchanged and signaled inflation may remain stickier than previously expected.
Federal Reserve Chair Jerome Powell said on Wednesday that the current U.S. economic situation, even with the Iran war-induced spike in energy prices was far removed from the "stagflation" of the 1970s, with current inflation only one percentage point above target and low unemployment. I would reserve the term stagflation for, you know, a much more serious set of circumstances.
* Iran's huge Gulf gas field struck in major escalation. * Fed calls inflation somewhat elevated. * US producer prices surge in February. By Ashitha Shivaprasad.
Federal Reserve Chairman Jerome Powell said Wednesday that while there's an expectation the tariff impact on inflation will wane over time, there is a lot of uncertainty on how that will all play out.
The Federal Reserve kept its monetary policy steady amid uncertainty around the ongoing Middle East conflict, and left its interest rate guidance unchanged despite upgrading inflation estimates. The central bank's Federal Open Market Committee left interest rates unchanged in a range of 3.50% to 3.75%, in line with Wall Street's expectations and marking its second consecutive pause.
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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