* IMF welcomes engagement between world's two largest economies. * IMF says Middle East war pushing global economy into lower growth scenario. * Fund continues to discuss potential assistance to countries struggling with high energy prices. By David Lawder and Andrea Shalal.
* 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.
* 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.
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.
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.
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.
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.
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.
* 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.
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.
* Dollar set for weekly gain as jump in US inflation spurs rate hike bets. * Trump, Xi to meet on Thursday as US President seeks economic wins. * Yuan holds steady; yen finds support around 157-158 per dollar. By Rae Wee.
Boston Federal Reserve President Susan Collins told the Wall Street Journal on Wednesday that she expects inflation pressures from the Iran war to eventually subside and that the current shock has masked evidence that underlying inflation is still headed down. Collins said on Wednesday the U.S. central bank may need to raise interest rates if inflation pressures do not abate.
* Canadian dollar falls 0.1% against the greenback. * Posts sixth straight daily decline. * BoC minutes show bank feels it could be patient on rates. * Canadian bond yields edge lower across the curve. By Fergal Smith.
* Producer prices post biggest gain since early 2022, fueling inflation concerns. * BCA Research's Ryan Swift says data unlikely to prompt Fed rate hikes. * Treasury sees ok demand for $25 billion in 30-year bonds. By Karen Brettell.
The U.S. Senate on Wednesday voted to confirm Kevin Warsh as the chair of the Federal Reserve, paving the way for the lawyer, financier and former central-bank governor to take the reins of the Fed. ?. Warsh, 56 years old, will take over with inflation rising and markets grappling with the likely course of central-bank policy while President Donald Trump demands lower interest rates.
The U.S. Senate on Wednesday voted to confirm Kevin Warsh as the chair of the Federal Reserve, paving the way for the lawyer, financier and former central-bank governor to take the reins of the Fed.
* US producer prices post biggest gain in four years in April. * India raises gold and silver tariffs to 15% to curb imports. * Spot platinum hits highest since March 12. By Ashitha Shivaprasad.
Minneapolis Federal Reserve President Neel Kashkari said on Wednesday that the U.S. labor market looks "a bit better" than it did earlier this year, while the Iran war has worsened inflation that already was running too high, views that underscore his preference for leaving the Fed's door open to possible rate hikes.
The U.S. Senate on Wednesday approved Kevin Warsh as chair of the Federal Reserve, putting the 56-year-old lawyer and financier at the helm as the U.S. central bank grapples with intensifying inflation that may make it hard to push through the interest-rate cuts that President Donald Trump has demanded. The vote was 54-45 in the most-partisan-ever U.S. Senate confirmation of a Fed chair.
* US producer prices post biggest gain in four years in April. * India raises gold and silver tariffs to 15% to curb imports. * Spot platinum hits highest since March 12. By Ashitha Shivaprasad.
* Warsh to take Fed chair role as rising inflation ignites rate-hike debate. * Producer prices rose 6% in April, stoking concern about broadening price pressures. * Trump picked Warsh with the expectation he would cut rates. By Howard Schneider and Ann Saphir.
Federal Reserve Bank of Boston President Susan Collins said Wednesday it's completely normal for a new central bank chair to put their own imprint on the institution. "Over the history of the Federal Reserve, there have been a number of different chairs, and each chair brings their own approach, their own perspective.
Nearly three-quarters of U.S. adults last year continued to rate their personal finances as being in reasonable shape, although they remained concerned about inflation and their worries about job security ticked up, an annual Federal Reserve survey released on Wednesday showed.
Nearly three-quarters of U.S. adults last year continued to rate their personal finances as being in reasonable shape, although they remained concerned about inflation and their worries about job security ticked up, an annual Federal Reserve survey released on Wednesday showed.
The Federal Reserve Bank of New York on Wednesday defeated an appeal by a Puerto Rican lender whose access to the U.S. central banking?system was cut off in a crackdown on lenders with links to Venezuela.
The Federal Reserve Bank of New York on Wednesday defeated an appeal by a Puerto Rican lender whose access to the U.S. central banking system was cut off in a crackdown on lenders with links to Venezuela.
* Producer Price Index increases 1.4% in April, largest gain since March 2022. * Increase in producer inflation is across services and goods. * Producer prices rise 6.0% year-on-year, biggest advance since December 2022. By Lucia Mutikani.
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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