U.S. government bonds rallied along the curve on Tuesday, as hopes for a breakthrough deal to reopen the Strait of Hormuz had investors relaxing a bit about the inflation outlook, ahead of a busy day of debt auctions headlined by a two-year sale.
* Seeing signs of energy inflation spillovers. * Economic growth may turn out weaker than projected. * Bond yield volatility not concerning. * Markets see almost three rate hikes over the next year. By Balazs Koranyi and Reinhard Becker.
London copper held steady on Tuesday,
as support from a weaker dollar was offset by higher oil prices
after the latest U.S. strikes on Iran dampened hopes of a swift
resolution to the Middle East ...
Canadian insurer Manulife
Financial Corp (MFC) has launched a 10-year Singapore dollar-denominated subordinated Tier-2 bond with a non-call period of five years, according to a term sheet on Tuesday. Here are a few details: * The initial price guidance for the offering was set at about 3.20%, according to the term sheet.
Senegal President Bassirou Diomaye Faye named a seasoned economist as prime minister on Monday, three days after dismissing the old government led by a firebrand populist who had spoken out against debt restructuring. The new prime minister, Ahmadou Al Aminou Lo, formerly served as head of the Senegal branch of the Central Bank of West African States.
The Russian central bank said on Monday it had filed a second claim with the General Court of the European Union, challenging the EU regulation that allows the use of Russia's frozen sovereign assets to repay the EU's loan to Ukraine.
Mozambique's central bank left its main interest rate unchanged at 9.25% on Monday. Governor Rogerio Zandamela told a press conference that the decision reflected high levels of uncertainty over the length of the Iran war and its impact on supply chains and prices of fuel and food.
The Bank of Israel lowered short-term interest rates for the third time in six months on Monday as inflation remained contained despite a war with Iran, while the shekel stands at a three-decade high against the dollar.
Euro zone government bond yields fell to their lowest levels in about a month on Monday as renewed hopes of a U.S.-Iran deal to reopen the Strait of Hormuz eased concerns over inflation and reduced expectations of aggressive central bank policy tightening. Diplomatic efforts to resolve the Iran war seemingly continued after Iran and the United States played down hopes for an imminent breakthrough.
* Oil prices fall below $100 a barrel. * Dollar eases as investors move out of the safe-haven currency. * US markets closed for Memorial Day holiday. By Noel John. Gold rose more than 1% on Monday as hopes of a peace deal to end the Iran war sent the dollar and oil prices lower, easing fears of inflation and higher-for-longer interest rates.
By Howard Schneider and Jacob Bogage. Former U.S. Federal Reserve Chair Jerome Powell was a handy foil for President Donald Trump, a target of blame for everything from high mortgage interest rates to the pace of economic growth.
By Howard Schneider and Jacob Bogage. Former U.S. Federal Reserve Chair Jerome Powell was a handy foil for President Donald Trump, a target of blame for everything from high mortgage interest rates to the pace of economic growth.
Euro zone government bond yields fell on Monday as renewed hopes of a U.S.-Iran deal to reopen the Strait of Hormuz eased concerns over inflation and reduced expectations of aggressive central bank policy tightening. Borrowing costs tracked moves in oil prices, which slid 5% amid optimism over a resolution of the conflict, even as key sticking points remained unresolved.
Euro zone government bond yields fell on Monday as renewed hopes of a U.S.-Iran deal to reopen the Strait of Hormuz eased concerns over inflation and reduced expectations of aggressive central bank rate rises.
* U.S. blockade on Hormuz to stay until agreement with Iran: Trump. * Oil prices fall to two-week low. * Kevin Warsh sworn in as U.S. Fed Chair. By Pablo Sinha. Gold prices rose more than 1% on Monday, as optimism for a breakthrough in U.S.-Iran peace negotiations weakened the dollar and eased oil prices, which softened the inflation outlook.
* U.S. blockade on Hormuz to stay until agreement with Iran: Trump. * Oil prices fall to two-week low. * Kevin Warsh sworn in as U.S. Fed Chair. By Pablo Sinha. Gold prices rose more than 1% on Monday, supported by a weaker dollar and easing oil prices, as investors weighed prospects of a breakthrough in U.S.-Iran peace negotiations. Spot gold was up 1.1% at $4,559.29 per ounce, as of 0359 GMT.
Gold prices rose more than 1% on Monday, supported by a weaker dollar and lower oil prices, as investors weighed prospects of a breakthrough in U.S.-Iran peace negotiations. FUNDAMENTALS. * Spot gold rose 1.4% to $4,570.88 per ounce by 0045 GMT. * The dollar fell, making greenback-priced bullion more affordable for holders of other currencies.
* 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.
Bangladesh's central bank on Saturday announced a 600 billion taka stimulus package to revive shuttered factories and support businesses as economic growth slows.
* European stocks end at highest in over a month. * Dollar holds higher; oil prices settle up. * Dow posts record closing high for second day. 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.-Israeli war with Iran.
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.
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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