* Investors monitor US-Iran tensions, Trump's China visit. * ECB rate hikes expected as oil prices fuel inflation fears. * Fed rate cut bets recede. By Samuel Indyk. Germany's 10-year government bond yield fell on Thursday but remained close to its recent multi-year peak as elevated energy prices solidified expectations for higher inflation and European Central Bank rate hikes.
National Bank of Canada on Wednesday reiterated its sector-perform rating on the shares of Hydro One (HRNNF) while raising its price target to C$56.00 from $55.00 following the company's first-quarter results. The bank raised the price target after incorporating the company's incremental capex guidance through 2027, as well as the Red Lake Transmission Line within longer-term estimates.
Canada's existing home sales rose 0.7% month over month in April, while new listings jumped 4.1% month over month, said TD. Canadian average home prices rose much more sharply in April, increasing 2.6% month over month, noted the bank after Thursday's release of data from the Canadian Real Estate Association.
* Retail sales increase 0.5% in April, in line with expectations. * Core retail sales also rise 0.5%, fourth straight monthly gain. * Weekly jobless claims climb 12,000 to 211,000. * Import prices jump 1.9% in April; up 4.2% year-on-year. By Lucia Mutikani.
US retail sales in April rose for the third straight month, with analysts saying the increase largely reflected higher prices as the war in Iran kept fuel costs elevated. Sales rose 0.5% in April following a revised 1.6% gain in March, the Census Bureau reported Thursday, matching the consensus in a survey compiled by Bloomberg.
National Bank of Canada on Wednesday raised Torex Gold Resources' (TORXF) price target to C$101 from $98 with an outperform rating. The higher price target was based on a higher NTM EBITDA window and using a 6.5x EV/EBITDA multiple, National Bank said.
Angola's central bank cut its benchmark lending rate by 50 basis points to 17% in a decision announced on Thursday. Inflation in the Southern African oil-producing country eased to 11.58% year-on-year in April, down from 12.42% in March. The central bank wants to bring inflation down to single digits.
Inflation is the biggest risk to a U.S. economy that has shown "remarkable resilience" in the face of numerous challenges, and the job market is stable, Kansas City Federal Reserve President Jeffrey Schmid said on Thursday. "I see continued inflation as the most pressing risk to the economy," Schmid said in prepared remarks to a banking industry conference hosted by the Kansas City Fed.
* Treasury yields retreat as oil prices drop and technical support attracts buyers. * Inflation concerns persist after strong U.S. producer price data and Middle East conflict. * Retail sales rise, jobless claims steady, Xi warns Trump on Taiwan tensions. By Karen Brettell.
Canadian existing home sales nudged up 0.7% month over month in April from March in seasonally adjusted terms, but no one is going to mistake this for a sign of spring for the chilly housing market, said Bank of Montreal on Thursday.
Gold edged higher early Thursday as treasury yields eased after a report showed U.S. retail-sales growth slowed in April. Gold for June delivery was last seen up $4.00 to US$4,710.70. The U.S. Census Bureau reported retail sales roes by 0.5% last month, down from a revised 1.6% in March but matching expectations according to Marketwatch.
The Bank of Canada's minutes for its April 29 rate decision were released on Wednesday, notes Rosenberg Research. "By far", it said, the most important quote was: "With slack in the labour market and excess supply in the economy, businesses would be less likely to pass higher costs on to consumers.
Top brokerages expect the benchmark S&P 500 index to extend its rally in 2026, even as Middle East tensions disrupt global energy flows and drive inflation higher. Strategists at major investment banks expect momentum in artificial intelligence and strong corporate earnings to offset the conflict's short-term economic impact. Morgan Stanley became the latest brokerage to raise its index target.
US retail sales rose by 0.5% in April, as expected in a survey compiled by Bloomberg as of 7:35 am ET and following the previous month's 1.6% gain. Excluding a 0.4% decrease in motor vehicle sales, retail sales were up 0.7%, also as expected. Removing both motor vehicles and a 2.8% gain in gasoline station sales, retail sales were up 0.5% in April after a 0.7% increase in March.
The number of Americans filing claims for unemployment benefits increased moderately last week, pointing to a stable labor market even as rising energy prices from the war with Iran drive up inflation. Initial claims for state unemployment benefits rose 12,000 to a seasonally adjusted 211,000 for the week ended May 9, the Labor Department said on Thursday.
The number of Americans filing claims for unemployment benefits increased moderately last week, pointing to a stable labor market even as rising energy prices from the war with Iran drive up inflation. The government reported on Wednesday that producer prices recorded their biggest increase in four years in April.
* White House weighs gas tax suspension as fuel prices surge, options dwindle. * Polls show most Americans feel financial strain, many doubt war is worth the cost. * Some Republicans back gas tax suspension, but party leaders are so far noncommittal. By Jarrett Renshaw, Nandita Bose and Jacob Bogage.
U.S. retail sales increased solidly for a third straight month in April, though part of the rise in receipts was due to soaring inflation amid the war with Iran. Rising price pressures were underscored by other data on Thursday showing imported inflation last month rose at its fastest pace in four years.
US initial jobless claims rose to a level of 211,000 in the week ended May 9 from a downwardly revised 199,000 level in the previous week, compared with expectations for a smaller increase to 205,000 in survey of analysts compiled by Bloomberg. The four-week moving average rose by 750 to 203,750 after decreasing by 4,750 to a level of 203,000 in the previous week.
U.S. retail sales increased further in April, but some of the rise in receipts was likely due to higher inflation as the war with Iran boosted prices of energy products and other commodities. The U.S.-Israeli conflict with Iran is driving up inflation. Gasoline prices rose 12.3% in April, data from the U.S. Energy Information Administration showed.
Restrictions proposed by the BOE prompted criticism from the crypto industry, which said they risked preventing the U.K. from being competitive in the digital economy.
The US dollar rose against its major trading partners early Thursday ahead of a busy day of economic releases, starting with weekly jobless claims, April retail sales, and April import and export price data, all at 8:30 am ET.
Bitcoin trades below $80,000 on Thursday morning as hotter-than-expected U.S. producer inflation data weakened expectations for near-term Federal Reserve rate cuts. Bitcoin ETFs saw $635.2 million in net outflows on Wednesday, while Ethereum ETFs reported $36.3 million in net outflows. Meme coin market capitalization is trading 1.6% lower at $38.5 billion over the past 24 hours.
Jeff Rosenberg, senior portfolio manager at BlackRock Inc.??said Thursday that inflation pressures may actually be nearing a peak despite recent hotter-than-expected CPI and producer inflation reports that reignited fears of further Federal Reserve tightening.
Commerzbank in its "European Sunrise" note of Thursday highlighted: Markets: United States Treasuries better supported in the late New York session and Asia. --Fed: Kevin Warsh is confirmed as Federal Reserve chair in a 54-45 Senate vote. --Fed: Federal Reserve Bank of Boston President Susan Collins argues that rates should remain on hold for "some time."
U.S. Treasury Secretary Scott Bessent said on Thursday that the U.S. may see one or two "hot" inflation data readings before disinflation resumes, and new Federal Reserve Chair Kevin Warsh will keep an open mind about inflation as energy prices subside.
Canada will release the consumer price index data for April on Tuesday, said Bank of Montreal. The bank expects Canada's CPI to hit 3% year over year in April, up from 2.4% in March. MT Newswires does not provide investment advice.
* White House weighs gas tax suspension as fuel prices surge, options dwindle. * Polls show most Americans feel financial strain, many doubt war is worth the cost. * Some Republicans back gas tax suspension, but party leaders are so far noncommittal. By Jarrett Renshaw, Nandita Bose and Jacob Bogage.
* Markets monitor Trump-Xi meeting, Iran war in focus. * U.S. Producer Price Index posts largest gain in four years. * HSBC raises 2026 silver price forecast to $75/oz. By Noel John.
* April new yuan loans shrink for first time in nine months. * Outstanding loan growth hits record low. * Q1 GDP growth picks up, but Iran war clouds outlook. * PBOC seen with limited room to ease as inflation pressures build. By Shi Bu and Kevin Yao.
* Trump to discuss Iran with Xi in U.S.-China summit. * U.S. Producer Price Index posts largest gain in four years. * U.S. Senate approves Kevin Warsh as Fed chair. By Pablo Sinha. Gold prices ticked up on Thursday, as investors focused on talks between U.S. President Donald Trump and his Chinese counterpart Xi Jinping, looking for signs of a resolution to the Iran war.
* GDP rises 0.3% in March against forecast of 0.2% drop. * Data caps another conspicuously strong Q1 outturn. * Economists question seasonality issues. * Stockpiling may also have brought forward demand. * Trade data shows surge in fuel imports. By Andy Bruce and Suban Abdulla.
Germany's 10-year bond yield was slightly lower on Thursday but remained close to its recent multi-year peak as higher energy prices solidified expectations for faster inflation and rate hikes from the European Central Bank. Expectations for a lasting peace deal between the U.S. and Iran have faded this week, keeping the Strait of Hormuz effectively closed to maritime traffic.
Japan's Nikkei share average hit a record high on Thursday before falling into negative territory as concerns about inflation and rising interest rates overwhelmed enthusiasm over technology stocks. The benchmark Nikkei 225 Index fell 1% to close at 62,654.05 after touching an unprecedented 63,799.32 earlier in the session.
* Dollar supported by rising U.S. Treasury yields and Fed rate hike expectations. * Trump-Xi summit focuses on trade progress, Taiwan tensions highlighted by Xi. * U.S. inflation data boosts rate hike bets, Fed Chair Warsh seen tightening policy. By Rae Wee and Amanda Cooper.
Indian Foreign Minister Subrahmanyam Jaishankar said on Thursday that "safe, unimpeded maritime flows" through international waters, including the Strait of Hormuz and the Red Sea, are vital for global economic well-being.
* Trump to discuss Iran with Xi in U.S.-China summit. * U.S. Producer Price Index posts largest gain in four years. * U.S. Senate approves Kevin Warsh as Fed chair. By Pablo Sinha. Gold prices were steady on Thursday, as investors focused on talks between U.S. President Donald Trump and Chinese President Xi Jinping, and looked for signs of progress in the Iran war.
Britain's economy expanded. Economists polled by Reuters had forecast a 0.2% month-on-month contraction in gross domestic product during March. For the first quarter as a whole, the economy grew by 0.6%, the Office for National Statistics said, matching expectations.
French President Emmanuel Macron faces a test next week when lawmakers decide whether to approve his former chief of staff to run the central bank, a nomination some critics say is part of a campaign to protect key institutions from a possible far-right election win in 2027.
Sitting out the oil shock may not be enough. Year-end crude oil futures are near their highest level of the Iran war so far, and with little sign of a durable peace deal. Annual consumer price inflation is heading back above 4% this month for the first time in three years, having failed to hit the Fed's 2% target rate since February 2021.
* Dollar set for weekly gain as jump in US inflation spurs rate hike bets. * China's Xi hails trade progress in Trump summit, sends Taiwan warning. * Yuan hits three-year high; yen finds support from BOJ board member comments. By Rae Wee.
Investors are bracing for U.S. Treasury yields to stay higher longer, skeptical that incoming Federal Reserve Chair Kevin Warsh will be able to tame inflation stoked by surging oil prices during a prolonged Middle East conflict. Long-dated yields, including those on benchmark 10-year notes, have spiked as investors demand greater compensation for inflation risk as higher energy prices bite.
* Trump to discuss Iran with Xi in U.S.-China summit. * U.S. Producer Price Index posts largest gain in four years. * U.S. Senate approves Kevin Warsh as Fed chair. By Pablo Sinha. Gold prices ticked up on Thursday, supported by a weaker dollar, as investors focused on talks between U.S. President Donald Trump and Chinese President Xi Jinping, and looked for signs of progress in the Iran war.
President Donald Trump?s nominee Kevin Warsh has been confirmed as the new Federal Reserve Chair, but bettors believe there's a reasonable chance he could still face public pushback from the POTUS. Prediction market Kalshi estimates a 56% likelihood that Trump will criticize Warsh before the end of the year.
The dollar climbed for a fourth straight day on Thursday, after economic data kept expectations intact that the Federal Reserve was unlikely to adjust interest rates this year, while investors awaited the upshot of talks between the U.S. and China.
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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