Shorter-dated U.S. Treasury yields shot up on Friday as investors digested data pointing to all-time low U.S. consumer sentiment in May. The two-year Treasury note yield, which typically moves in step with interest rate expectations for the Federal Reserve, was last up 4.4 basis points at 4.123%. Five-year Treasury yields were up 1.3 bps at 4.255%, while the yield on the benchmark 10-year Treas...
The U.S. Federal Reserve on Friday said Kevin Warsh had taken the oath of office as chairman and member of the Board of Governors, and that its interest-rate-setting Federal Open Market Committee had unanimously selected him as its chairman. Warsh earlier on Friday was sworn into office at the White House by President Donald Trump.
A pair of U.S. banking regulators have signed off on plans submitted by the nation's largest banks detailing how they could be safely unwound in bankruptcy. The Federal Reserve and Federal Deposit Insurance Corporation did not identify any shortcomings in the so-called "living wills" of the nation's 8 largest banks and 56 foreign banking organizations.
* US stocks higher. * European stocks end at highest in over a month. * Dollar holds higher; oil prices settle up. By Caroline Valetkevitch and Stefano Rebaudo. Major stock indexes rose and Treasury yields eased on Friday as investors weighed the likelihood of a near-term deal to end the U.S. and Israeli war on Iran. Oil prices gained as much uncertainty surrounding the Iran talks remained.
* PC makers Dell, HP surge after Lenovo (LNVGF) reports revenue jump. * Est?e Lauder climbs after ending merger talks with Puig. * Kevin Warsh sworn in as Fed chair. * S&P 500 eyes 8th weekly gain, longest streak since December 2023. * Indexes up: Dow 0.86%, S&P 500 0.62%, Nasdaq 0.50% By Chibuike Oguh, Shashwat Chauhan and Medha Singh.
* US stocks higher in late morning. * European stocks also higher. * Dollar holds near six-week high. By Caroline Valetkevitch and Stefano Rebaudo. Major stock indexes rose and Treasury yields eased on Friday as investors weighed the likelihood of a near-term deal to end the U.S. and Israeli war on Iran. Oil prices gained as much uncertainty surrounding the Iran talks remained.
* Warsh pledges to lead 'reform-oriented' Fed. * Trump promises 'full support' of administration. * Warsh facing pressure from markets, colleagues, over rate decisions. * Fed's Waller ready to axe 'easing bias' * Warsh unanimously selected by Fed's policy-setting panel as its chair. By Howard Schneider and Ann Saphir.
* FTSE 100 up 0.22%, FTSE 250 rises 0.96% * Data prompts traders to reassess rate hike bets. * Political uncertainty remains in focus. UK's blue-chip FTSE 100 index ended a four-week losing streak after data released this week weakened expectations of a Bank of England rate hike, giving relief to investors unsettled by political uncertainty.
U.S. President Donald Trump said on Friday at a swearing-in ceremony for Kevin Warsh that increases in the stock market mean investors like the incoming Fed Chair.
U.S. President Donald Trump on Friday said that he wanted incoming Fed Chair Kevin Warsh to be "totally independent" in his new role. "Don't look at me, don't look at anybody, just do your own thing and do a great job," Trump said at a swearing-in ceremony at the White House.
* PC makers Dell, HP surge after Lenovo (LNVGF) reports revenue jump. * Est?e Lauder climbs after ending merger talks with Puig. * Kevin Warsh to be sworn in as Fed chair later in the day. * S&P 500 eyes eighth weekly gain, best streak since December 2023. * Indexes up: Dow 0.82%, S&P 500 0.65%, Nasdaq 0.67% By Shashwat Chauhan and Medha Singh.
* Gold falls 1% * US consumer sentiment plunges to record low. By Ishaan Arora. Gold fell on Friday and was headed for its second straight weekly loss, pulled lower by a stronger dollar and rising oil prices that kept inflation concerns in focus and increased bets for a U.S. interest rate hike. Spot gold was down 0.9% at $4,502.59 per ounce, by 1457 GMT, after falling 1% earlier in the session.
U.S. Federal Reserve Governor Christopher Waller said it would be "crazy" for the Fed to contemplate rate cuts in the near future, with inflation stuck above target and the job market seeming more stable than it did earlier in the year. "It's just kind of crazy to say you could start talking about rate cuts in the near future," Waller said.
U.S. consumer sentiment fell to a record low in May as surging gasoline prices linked to the Iran war intensified affordability concerns, highlighting broader dissatisfaction with President Donald Trump's handling of the economy. The University of Michigan's Surveys of Consumers on Friday showed sentiment among Republicans and Independents dropped to the lowest level of Trump's second term.
Federal Reserve Governor Christopher Waller, an influential voice in policymaking who until recently had advocated for lower interest rates, on Friday said the Fed should axe the "easing bias" from its policy statement and effectively open the door to a possible rate hike.
* UBS Global Wealth lifts S&P 500 2026 target to 7,900 from 7,500 pts. * Est?e Lauder jumps after ending merger talks with Puig. * Kevin Warsh to be sworn in as Fed chair later in the day. * Indexes up: Dow 0.6%, S&P 500 0.7%, Nasdaq 0.7% By Shashwat Chauhan and Medha Singh.
* U.S. dollar holds near six-week high. * CME FedWatch predicts 58% chance of at least one U.S. rate hike this year. * Trump to swear in Warsh as Fed chair later in the day. * Price volatility subdues Indian demand. By Ishaan Arora.
Mexican consumer prices fell 0.16% in the first half of May, national statistics agency INEGI said on Friday, broadly in line with expectations of a 0.15% drop in a Reuters poll of economists. * Annual inflation 4.11%, after 4.53% last month, vs economists' expectations of 4.13% * Analysts had said seasonal electricity subsidies in some states would drive prices down.
Kevin Warsh has been a sharp critic of the Federal Reserve for the last 15 years, ever since leaving his job there as a governor in 2011. INFLATION IS A 'CHOICE' "Congress tasked the Fed with the mission to ensure price stability, without excuse or equivocation, argument or anguish," Warsh said in his written testimony for his confirmation hearing last month.
* Warsh lays inflation overshoot at Fed's feet, rejects supply chain explanations. * He opposes forward guidance, favors less communication on policy intentions. * Warsh urges balance sheet reduction, questions reliance on precise economic data. Kevin Warsh has been a sharp critic of the Federal Reserve for the last 15 years, ever since leaving his job there as a governor in 2011.
UK's blue-chip FTSE 100 index was on course to end a four-week losing streak after data released this week weakened expectations of a Bank of England rate hike, giving relief to investors unsettled by political uncertainty.
* UBS Global Wealth Management lifts S&P 500 2026 target to 7,900 from 7,500 pts. * Est?e Lauder jumps after ending merger talks with Puig. * Kevin Warsh to be sworn in as Federal Reserve chair later in the day. * Futures up: Dow 0.2%, S&P 500 0.1%, Nasdaq 0.1% By Shashwat Chauhan.
Kevin Warsh was sworn in as chair of the U.S. Federal Reserve on Friday at a pivotal moment for an American economy where surging gasoline prices due to the Iran war are pushing up inflation and eroding consumer sentiment, potent ingredients for a policy dilemma with political implications.
* Warsh set for Friday morning swearing in at White House. * AI boom and external shocks complicate inflation outlook for Fed. * Warsh facing pressure from markets, colleagues, over rate decisions. * Fed's Waller, a key voice, updates views today. By Howard Schneider.
* PCE inflation gauge due on Thursday. * Salesforce (CRM), Costco, Best Buy (BBY) among reports due as robust Q1 comes to end. * Bond market selloff in view as Treasury yields hit milestones. By Lewis Krauskopf.
Fiscal support measures by euro zone governments that ease the pain of high energy prices should not contradict the European Central Bank's efforts to curb surging infltion8, the chairman of euro zone finance ministers Kyriakos Pierrakakis said. "We certainly all understand that we shouldn't contradict monetary policy.
* Futures up: Dow 0.3%, S&P 500 0.31%, Nasdaq 0.5% U.S. stock index futures climbed on Friday as Treasury yields eased, lifting megacaps and chip stocks, though markets watched for signs of a breakthrough in discussions to end the Middle East war. Iran's foreign minister met the interior minister of Pakistan to discuss proposals to end the nearly three-month-old conflict, media reports said.
* Dollar holds near six-week high on U.S.-Iran uncertainty. * Traders see 41% chance of a 25-bp U.S. rate hike in December. * Trump to swear in Warsh as Fed chair on Friday. * All metals on track for weekly losses. By Noel John.
World markets remain at the mercy of diplomacy as the Iran war approaches the end of its third month with no clear resolution in sight. A host of central banks meanwhile brace for their next moves and inflation data piles the pressure on U.S. and Japan policymakers.
World markets remain at the mercy of diplomacy as the Iran war approaches the end of its third month with no clear resolution in sight. A host of central banks meanwhile brace for their next moves and inflation data piles the pressure on U.S. and Japan policymakers.
* APEC ministers responsible for trade to discuss supply chain resilience, digital trade, AI readiness. * China's record trade surplus and G7 calls for action on imbalances add to tension. * APEC Business Advisory Council urges pause on new trade curbs. * Japan's trade minister attends, marking highest-level visit since last year's diplomatic rift. By Nicoco Chan and Casey Hall.
Europe's push to curb its dependence on U.S. payments giants Visa and Mastercard (MA) has driven a wedge between the European Central Bank and financial firms keen to shield revenues, hobbling efforts to build a home-grown system, several people involved said.
Britain's FTSE 100 index is seen opening higher on Friday, with futures up 0.42%. * BT: Indian conglomerate Bharti Enterprises is seeking to potentially increase its stake in BT to just under the threshold that would require it to make a full takeover offer for the British telecoms group, three people familiar with the matter said.
Japanese government bonds were mixed on Friday, with optimism about a near-term end to the Iran war pulling longer-dated yields lower, while speculation for earlier Bank of Japan tightening lifted shorter-dated yields. Yields globally have been rising with the price of oil as the war stoked worries about inflation.
* US, Iran at odds on key issues. * Trump to swear in Warsh as Fed chair. * Silver heads for weekly gain. * Platinum, palladium face weekly losses. By Pablo Sinha. Gold edged lower on Friday, pressured by a stronger U.S. dollar and as elevated oil prices have raised expectations for interest rate hikes by the U.S. Federal Reserve. Spot gold was down 0.3% at $4,527.60 per ounce, as of 0411 GMT.
Nomura has joined a growing chorus of brokerages expecting the U.S. Federal Reserve to hold interest rates steady in 2026, citing persistent inflation and skepticism that policymakers will rally behind rate cuts.
Major stock indexes rose and Treasury yields eased on Friday as investors weighed the likelihood of a near-term deal to end the U.S. and Israeli war on Iran. Oil prices gained as much uncertainty surrounding the Iran talks remained. U.S. Secretary of State Marco Rubio said that the United States has seen some progress towards a deal with Iran but more work is required.
The dollar held near six-week highs on Friday as traders weighed the prospects of a near-term deal to end the Middle East war and assessed whether the Federal Reserve would raise interest rates if inflation continued to accelerate.
Gold edged lower on Friday, on track for its second consecutive weekly loss, as higher oil prices and rising concerns around inflation and hawkish interest rates weighed on the metal.
* April core CPI rises 1.4% yr/yr vs forecast +1.7% * Index excluding fresh food, fuel rises 1.9% yr/yr. * Inflation seen re-accelerating on war-induced energy shock. By Leika Kihara.
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* April core CPI rises 1.4% yr/yr vs forecast +1.7% * Index excluding fresh food, fuel rises 1.9% yr/yr. * Inflation seen re-accelerating on war-induced energy shock. By Leika Kihara. Japan's core consumer prices rose 1.4% in April from a year earlier, data showed on Friday, marking the slowest annual pace in four years due largely to the effect of government subsidies on school tuition.
U.S. President Donald Trump will swear in Kevin Warsh as the chair of the Federal Reserve on Friday at the White House, the Trump administration said on Thursday. Warsh was confirmed to the role in a near party-line vote on May 13. Warsh, 56, will serve a four-year term as chair and a 14-year term as a Fed governor.
U.S. President Donald Trump will swear in Kevin Warsh as the chair of the Federal Reserve on Friday at the White House, the Trump administration said on Thursday. Warsh, 56, will serve a four-year term as chair and a 14 year term as a Fed governor.
Brazil's central bank said on Thursday it will offer up to $1 billion in two simultaneous dollar auctions with repurchase agreements on Friday. In a statement, the central bank said the auctions will start at 10:30 a.m. local time, and aim to roll over contracts maturing in June. The repurchases for the auctions are set for September 2 and November 4, according to the monetary authority.
Surging U.S. Treasury yields have prompted mortgage investors to hedge the loans in their portfolios by selling government debt, a shift?that probably exacerbated the bond selloff this week and added to the biggest rate spike in a year.
How businesses and consumers respond to ongoing economic shocks will determine if the U.S. Federal Reserve can "look through" current high inflation or needs to consider raising interest rates, Richmond Fed President Thomas Barkin said on Thursday.
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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