* China's official manufacturing PMI returns to expansion in June. * Non-manufacturing PMI improves to 50.2 from 50.1 in May. China's factory activity returned to expansion in June, an official survey showed on Tuesday, driven by strong high-tech manufacturing exports linked to the AI boom, even as shipments of other goods remained weak alongside subdued domestic demand.
China's non-manufacturing activity expanded for a second month in June, an official survey showed on Tuesday. The non-manufacturing purchasing managers' index, which includes services and construction, rose to 50.2 from 50.1 in May, according to the National Bureau of Statistics.
China's central bank conducted overnight reverse repo operations again on Tuesday, offering 600 billion yuan to financial institutions, it said in an online statement, without disclosing the borrowing cost. The People's Bank of China also said it injected 69.5 billion yuan through seven-day reverse repos, with the rate unchanged at 1.4%, according to the statement.
Gold fell over 1% on Tuesday and was set
for a fourth straight monthly decline, as uncertainty in the
Middle East gave way to expectations of U.S. interest rate hikes
to tame inflation.
Collins Foods (CLLFF), operator of KFC (YUM) restaurants in Australia, reported a decline in same-store sales in its European operations in the early part of fiscal 2027 on Tuesday, due to a heatwave that disrupted consumer sentiment, reversing early gains in its shares.
Japan's factory output rose at a slower-than-expected pace in May from the previous month, government data showed on Tuesday. Here are a few details. -- Industrial output grew 0.5% in May from the previous month, versus the median market forecast for a 1.1% rise, according to the Ministry of Economy, Trade and Industry.
Japan's factory output rose 0.5% in May from the previous month, versus the median market forecast for a 1.1% rise, government data showed on Tuesday. Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect seasonally adjusted output to increase 3.7% in June and stay flat in July.
U.S. stocks followed their world counterparts higher on Monday, with the S&P 500 and the Nasdaq snapping five-day losing streaks and the blue-chip Dow notching an all-time closing high as the U.S. and Iran halted attacks and took steps toward de-escalation. I will go into more detail on today's market moves below.
The U.S. Food and Drug Administration on Monday selected Eli Lilly (LLY), Regeneron and five other companies for a pilot program to accelerate reviews of new domestic pharmaceutical manufacturing facilities.
The U.S. Food and Drug Administration has selected Eli Lilly (LLY) and Regeneron, among seven companies, for a pilot program to accelerate reviews of new domestic pharmaceutical manufacturing facilities, CNBC reported on Monday citing an FDA spokesperson.
* US labor market data due later this week. * Yield on 2-year note rises after four straight daily declines. By Chuck Mikolajczak. U.S. Treasury yields edged higher on Monday, as crude prices rose following attacks between the U.S. and Iran over the weekend and ahead of a flurry of labor market data later this week.
* Supreme Court thwarts Trump effort to fire Fed Governor Lisa Cook. * Cook says victory affirms central bank's independence. * Trump claims he will continue to fight to fire Cook. By Michael S. Derby. Federal Reserve Governor Lisa Cook said the U.S. Supreme Court's decision on Monday to block President Donald Trump's attempted firing of her defended the central bank's independence.
* US Supreme Court blocks Trump's effort to fire Cook from board seat. * Legal case is key to future presidential influence over Fed. * Warsh to join ECB, BOE and Bank of Canada leaders at conference in Portugal. By Howard Schneider.
NIKKEI: * HONDA EYES $2.5BN IN EUROBONDS TO FUND PAYMENTS TO PARTS MAKERS - NIKKEI. * HONDA CONSIDERING FLOATING 3 BONDS WITH MATURITIES OF 3, 6 AND 10 YEARS - NIKKEI Further company coverage:
* US labor market data due later this week. * Yield on 2-year note rises after four straight daily declines. By Chuck Mikolajczak. Shorter-dated U.S. Treasury yields were mostly higher on Monday, as crude prices rose following attacks between the U.S. and Iran over the weekend and ahead of a flurry of labor market data later this week. BENCHMARK YIELDS EDGE HIGHER.
Federal Reserve Governor Lisa Cook said the U.S. Supreme Court's decision on Monday to block President Donald Trump's attempted firing of her defended the central bank's independence. The 5-4 ruling by the nation's highest court "recognizes that Federal Reserve independence is essential to fulfilling the congressional mandate of price stability and maximum employment," Cook said in a statement.
Federal Reserve Governor Lisa Cook said following a Supreme Court decision on Monday that thwarted her attempted firing by President Donald Trump that the ruling defends central bank independence.
Federal Reserve Governor Lisa Cook was the first U.S. central banker to be targeted for firing by any president. The daughter of a nursing professor mother and hospital chaplain father, Cook and her sisters were among the first Black students to desegregate the schools they attended in rural Milledgeville, Georgia.
* Supreme Court rejects Trump's attempt to fire Cook. * Trump was first president to try to fire a Fed official. * Biden appointee Cook was Fed's first Black female governor. * Trump appointee made unproven mortgage fraud allegations. * Cook has emerged as a hawkish voice at the central bank. By Ann Saphir.
The U.S. Supreme Court refused on Monday to let Donald Trump fire Federal Reserve Governor Lisa Cook as it stood firm to preserve the central bank's cherished independence against an unprecedented challenge by the Republican president.
The U.S. Supreme Court refused on Monday to let Donald Trump fire Federal Reserve Governor Lisa Cook as it stood firm to preserve the central bank's cherished independence against an unprecedented challenge by the Republican president. The court, in a 5-4 ruling, blocked Trump's bid to become the first president to remove a Fed official since Congress created the central bank in 1913.
* Treasury data showed total spending reached 19.6% of GDP in the 12 months through May. * May's primary deficit rose 26.3% from a year earlier to 53.257 billion reais. * Pensions drove spending growth, helped by backlog reduction efforts and a payment calendar effect. By Marcela Ayres.
* Bullion on track for a fourth consecutive monthly loss. * Iran, US agree to halt attacks and renew talks. * US ADP employment report and NFP data due this week. By Sumit Saha. Gold fell on Monday as recent hostilities in the Middle East fueled inflation concerns and added to expectations of U.S. Federal Reserve rate hikes.
The U.S. economy and the U.S. stock market are starting to go their own ways. An eventful June featuring the launch of the record-busting SpaceX IPO and Federal Reserve chief Kevin Warsh's first meeting has been full of contradictions. U.S. economic data has been solid, led by continued job gains and?strong consumer spending, while sentiment is ticking up.
* US Supreme Court expected to rule on whether Fed Governor Cook keeps her board seat. * Legal case is key to future presidential influence over Fed. * Warsh to join ECB, BOE and Bank of Canada leaders at conference in Portugal. By Howard Schneider.
Federal Reserve Chairman Kevin Warsh's early leadership of the U.S. central bank faces a fresh test this week, with an appearance before a high-profile economic conference in Portugal coming just two days after the Supreme Court blocked President Donald Trump's effort to fire a Fed policymaker.
* MSCI EM equities headed for strongest quarter since 2009. * Bolivia will adopt a flexible exchange-rate system. * Hungary's 2026 deficit may top 7% of GDP, prime minister says. * Serbian assets in focus after Vucic offers early elections. By Ragini Mathur.
* Bullion on track for a fourth consecutive monthly loss. * Iran, US agree to halt attacks and renew talks. * US ADP employment report and NFP data due this week. By Sumit Saha. Gold fell on Monday as recent hostilities in the Gulf fueled inflation concerns that added to U.S. Federal Reserve rate-hike expectations, pressuring the non-yielding metal.
A wild first half of the year is almost over, with focus shifting to how central banks, especially the Federal Reserve, steer markets in the months ahead. The new Fed chief attends the European Central Bank's Sintra conference, while U.S. jobs numbers, euro zone inflation readings, British politics and tech are in focus.
* Dollar index on track for 2.5% jump in June. * Middle East tensions, US jobs data in focus. * Markets await ECB forum for policy signals. By Jiaxing Li. The U.S. dollar held firm on Monday, on track for its biggest monthly gain in nearly a year, as Gulf tensions and elevated Treasury yields underpinned demand ahead of key jobs data later in the week.
Japanese government bond yields rose on Monday as concerns over inflation intensified after local media reported the government may push the Bank of Japan to align its decisions with Prime Minister Sanae Takaichi's pro-growth economic agenda. Here are a few details: * The benchmark 10-year JGB yield rose 5 basis points to 2.645%. Yields move inversely to bond prices.
* Iran, U.S. agree to halt attacks and renew talks, Axios reports. * Iran launched strikes on U.S. military sites in Bahrain, Kuwait. * U.S. ADP employment and NFP data due this week. By Pablo Sinha. Gold prices eased on Monday as recent U.S.-Iran strikes in the Gulf pushed oil prices higher, while expectations of U.S. Federal Reserve interest rate hikes further weighed on the non-yielding metal.
* Dollar at one-year highs, keeps yen near intervention zone. * Oil prices rise on peace deal uncertainty. * U.S. rate-hike odds keep dollar supported. * Tech valuation worries linger. By Ankur Banerjee.
The dollar dropped on Monday but remained near a 13-month high, supported by optimism over U.S. economic growth, the prospect of Federal Reserve interest rate hikes and a continuing AI-driven boom in U.S. equity markets that has been drawing in capital at a rapid pace. The Japanese yen also weakened to its lowest levels against the U.S. currency since 1986.
China's central bank on Monday debuted overnight reverse repo operations, offering 300 billion yuan to financial institutions, according to an online statement. The People's Bank of China did not announce the borrowing cost for the overnight reverse repos. The PBOC also said it injected 157.5 billion yuan through seven-day reverse repos, with the rate unchanged at 1.4%, it said in the statement.
Gold prices slipped on Monday as renewed
U.S.-Iran hostilities pushed oil prices higher, while
expectations of U.S. Federal Reserve interest rate hikes further
weighed on the metal.
Sovereign wealth funds and central banks managing $29 trillion in assets are turning to energy assets, and raising concerns about the dollar, in a portfolio reassessment driven by unprecedented geopolitical shifts, according to an Invesco survey published on Monday.
* 61% of central banks say US debt hurts the dollar's long-term reserve role, Invesco found. * One-third plan to increase gold holdings as part of diversification, the survey found. * Some reviewing reliance on U.S.-based custodians, counterparties and clearing infrastructure. By Libby George.
* Payrolls data for June due on Thursday. * Swings in tech, semiconductor shares keep investors on edge. * Rate-hike bets in focus following hawkish Fed meeting. By Lewis Krauskopf.
Federal Reserve Chairman Kevin Warsh's early leadership of the U.S. central bank faces fresh tests this week, with an appearance before a high-profile economic conference in Portugal and the U.S. Supreme Court's expected ruling on the legality of President Donald Trump's effort to fire a Fed policymaker.
* US Supreme Court expected to rule on whether Fed Governor Cook keeps her board seat. * Legal case is key to future presidential influence over Fed. * Warsh to join ECB, BOE and Bank of Canada leaders at conference in Portugal. By Howard Schneider.
Strategic petroleum releases helped avert a sharper rise in oil prices as a result of the war in the Middle East, but the global economy faces significant downside risks if a fragile ceasefire between the U.S. and Iran doesn't hold, IMF chief economist Pierre-Olivier Gourinchas said on Friday.
June 26 - S&P Global affirmed its "AA+" credit rating for the U.S. on Friday, saying the economy's resilience supported solid fiscal revenue collection. The ratings agency said it expected the U.S. economy to grow at around 2% over 2026 to 2029, adding that despite heightened political polarization, strong institutions and the system of checks and balances will continue to anchor policy outcomes.
June 26 - S&P Global affirmed its "AA+" credit rating for the U.S. on Friday, saying the economy's resilience supported solid fiscal revenue collection. The ratings agency said it expected the U.S. economy to grow at around 2% over 2026 to 2029, adding that despite heightened political polarization, strong institutions and the system of checks and balances will continue to anchor policy outcomes.
* Dollar eases but on pace for strong June. * Yen remains at levels primed for intervention. * Consumer sentiment gauge increases but below estimate. The dollar fell for a second straight session on Friday as recent economic data and a drop in oil prices slightly cooled expectations for Federal Reserve rate hikes, although the yen remained in territory that left it primed for an intervention.
Global trade flows and relationships are shifting after U.S. President Donald Trump imposed unilateral tariffs on most countries, but the U.S. dollar continues to anchor international trade, banking and central bank reserves, the International Monetary Fund's chief economist said on Friday.
Global trade flows and relationships are shifting after U.S. President Donald Trump imposed unilateral tariffs on most countries, but the U.S. dollar continues to anchor international trade, banking and central bank reserves, the International Monetary Fund's chief economist said on Friday.
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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