U.S. economic growth was not a strong as initially thought in the first quarter, and momentum is set to slow this quarter, with the war with Iran stoking inflation and squeezing households finances. Gross domestic product increased at a 1.6% annualized rate last quarter, the Commerce Department's Bureau of Economic Analysis said in its second estimate of first-quarter GDP on Thursday.
U.S. economic growth was not a strong as initially thought in the first quarter, and momentum is set to slow this quarter, with the war with Iran stoking inflation and squeezing households finances. Gross domestic product increased at a 1.6% annualized rate last quarter, the Commerce Department's Bureau of Economic Analysis said in its second estimate of first-quarter GDP on Thursday.
By Jamie McGeever. A gap is widening between two key measures of underlying U.S. inflation. The Bureau of Economic Analysis on Thursday released April's personal consumption expenditures figures, one of two closely watched measures of price changes across a wide range of goods and services. Annual headline PCE inflation rose to 3.8% from 3.5% in March, on the back of soaring energy prices.
Brazil's economy is expected to have grown faster in the first quarter against the last three months of 2025 aided by stronger manufacturing activity, a Reuters poll showed. The service sector also contributed to the recovery, particularly in commerce, professional and household segments supported by a healthy job market, analysts said.
US economic growth, as measured by gross domestic product, rose by 1.6% in Q1, revised lower from a 2.0% increase in the advance estimate. There was no revision expected in a survey compiled by Bloomberg as of 7:00 am ET. GDP rose by 0.5% in Q4. Personal consumer expenditures rose by 1.4% after a 1.9% gain in Q4, a downward revision from a 1.6% gain in the advance estimate.
?Spring demand boosts prices nationally, though most major markets remain flat or below year-ago levels, says Chief Economist Mark Fleming? First American Data & Analytics, a leading national provider of property-centric information, risk management and valuation solutions and a division of First American Financial Corporation (FAF), today released its April 2026 Home Price Index report.
Federal Reserve Bank of New York President John Williams said Thursday it's hard to spot fundamental shifts in the level of productivity as they are happening.
Canada's current account deficit on a seasonally adjusted basis widened by $6.2 billion to $7.2 billion in Q1, said the country's statistical agency on Thursday. The Q1 deficit was much higher than the $3.9 billion consensus deficit provided by MUFG.
The number of Americans filing claims for unemployment benefits increased marginally last week amid relatively low layoffs, despite the dragging war with Iran. Initial claims for state unemployment benefits rose 5,000 to a seasonally adjusted 215,000 for the week ended May 23, the Labor Department said on Thursday.
The number of Americans filing claims for unemployment benefits increased marginally last week amid relatively low layoffs, despite the dragging war with Iran. Initial claims for state unemployment benefits rose 5,000 to a seasonally adjusted 215,000 for the week ended May 23, the Labor Department said on Thursday.
U.S. inflation increased at its fastest pace in three years in April, driven by higher energy prices amid the war with Iran, and cementing economists' views that the Federal Reserve could hold interest rates unchanged well into next year.
US initial jobless claims rose to a level of 215,000 in the week ended May 23 from an upwardly revised 210,000 level in the previous week, compared with expectations for a level of 211,000 in survey of analysts compiled by Bloomberg. The four-week moving average rose by 6,250 to 209,000 after decreasing by 1,250 to a level of 202,750 in the previous week.
Bulgaria is keen to respect?its commitment to NATO and increase its defence spending to 5% of its gross domestic product, Prime Minister Rumen Radev said on Thursday. Previously president of Bulgaria, Radev resigned from that role ahead of parliamentary elections in April, which he won with a landslide.
* EU considers broadening import quotas, tariffs on Chinese goods -FT. * EU wants to shield certain industries. * Chinese govt spokesperson says EU is not seeing whole trade picture. * Says China does not deliberately pursue trade surplus with Europe. By Colleen Howe and Julia Payne.
Outstanding loans in Brazil were up 9.3% in the 12 months through April, central bank data showed on Thursday, slowing from the 9.8% expansion registered in the previous month.
Brazil's producer price index rose 2.63% in April, up from a revised 2.28% increase in the previous month, statistics agency IBGE said on Thursday, marking the highest monthly increase since March 2022.
RBC Capital Markets raised its price target on National Bank of Canada (NTIOF) to $214 from $180 on Thursday. Analyst Darko Mihelic maintained a Sector Perform rating on shares of the Canadian bank following its quarterly results. "Core EPS was above our estimate primarily due to lower than expected PCLs," Mihelic said in a note to clients.
* Investors more cautious on chances of swift end to Iran war. * US economic data in focus after hawkish Fed remarks. * Yen support likely to hinge on intervention risks, US data. By Stefano Rebaudo.
The US dollar rose against its major trading partners early Thursday, except for a decline versus the yen, ahead of a busy day of economic data releases, starting with weekly jobless claims, the second look at Q1 GDP, and durable goods and personal income and spending data for April, all at 8:30 am ET.
The main US stock measures were trending lower in Thursday's premarket activity amid renewed tensions in the Middle East, while traders await key inflation and economic data. The S&P 500 and the Dow Jones Industrial Average edged down 0.1% each before the opening bell, while the Nasdaq was off 0.2%. The indexes finished Wednesday's trading session with fresh highs.
UBS said it estimates Canada's gross domestic product growth to slow down this year to 1.5% from 1.7% in 2025. The bank estimates a pickup in economic growth in 2027, up 1.7%. UBS sees the consumer price index averaging at 2.6% this year and at 2.4% in 2027, up from 2.1% in 2025. The current account deficit to GDP is predicted to narrow to 0.7% this year and to 0.3% in 2027 versus 0.9% in 2025.
CFRA, an independent research provider, has provided MT Newswires with the following research alert. RY beat Q2 FY 26 earnings with operating EPS of CAD3.90 vs. MT Newswires does not provide investment advice.
Swiss inflation is currently within the Swiss National Bank's target range, SNB Chairman Martin Schlegel said on Thursday, with the central bank relying mainly on its interest rate to steer monetary policy. The SNB would also use foreign-exchange interventions "if necessary", Schlegel said, according to slides presented at an event in Reykjavik, Iceland.
CFRA, an independent research provider, has provided MT Newswires with the following research alert. RY beat Q2 FY 26 earnings with operating EPS of CAD3.90 vs. MT Newswires does not provide investment advice.
Royal Bank of Canada (RY) reported fiscal Q2 adjusted earnings Thursday of 3.90 Canadian dollars per diluted share, up from CA$3.12 a year earlier. Analysts surveyed by FactSet expected CA$3.80. Revenue for the quarter ended April 30 was CA$17.45 billion, up from CA$15.67 billion a year earlier. Analysts polled by FactSet expected CA$17.32 billion.
* EU considers broadening import quotas, tariffs on Chinese goods -FT. * EU wants to shield certain industries. * Chinese govt spokesperson says EU is not seeing whole trade picture. * Says China does not deliberately pursue trade surplus with Europe. By Colleen Howe and Julia Payne.
* Investors more cautious on chances of swift end to Iran war. * US economic data in focus after hawkish Fed remarks. * Yen support likely to hinge on intervention risks, US data. By Stefano Rebaudo.
Food insecurity and financial strain are rising across large parts of the U.S. economy even as broader economic conditions remain relatively stable, according to new research published Wednesday by the Federal Reserve Bank of New York.
* U.S. launches strikes on Iran military site. * Dollar rises to one-week high. * U.S. PCE data due at 1230 GMT. * Silver, platinum hit near one-month lows. By Pablo Sinha. Gold prices fell to a two-month low on Thursday as fresh U.S. attacks on Iran boosted the dollar and pushed oil prices higher, stoking concerns about rising inflation and clouding the interest rate outlook.
Euro zone bond yields rose on Thursday after the U.S. and Iran traded strikes, threatening their ceasefire agreement and pushing oil prices up around 3%. Germany's 10-year bond yield rose 2 basis points to 3.005%. The two-year German bond yield, which is more sensitive to European Central Bank interest rate expectations, rose 4 bps to 2.617%. Yields move inversely to prices.
If Donald Trump is indeed backing off and allowing the Federal Reserve to do what it needs to do, then the U.S. president may have to park his administration's long-assumed preference for a weaker dollar too.
Federal Reserve Vice Chair Philip Jefferson said on Thursday it was appropriate to focus on returning inflation to the central bank's 2% target given the U.S. labour market has been "very resilient" to the current energy shock.
* Bare-bones budget aims to preserve fiscal space as Iran war fans economic risks. * Budget projects achieving surplus sooner than expected in fiscal 2030. * Finance Minister Willis says budget aims to bolster economy for years ahead. * Government downgrades GDP forecast for 2027 fiscal year. * Budget boosts spending on defence, schools but flags deeper public service cuts.
Chicago Federal Reserve President Austan Goolsbee on?Thursday amped up his warning that mounting expectations for the productivity-boosting potential of AI could send inflation higher and force the Fed and other central banks to raise interest rates.
Chicago Federal Reserve President Austan Goolsbee on Thursday amped up his warning that mounting expectations for the productivity-boosting potential of AI could send inflation higher and force the Fed and other central banks to raise interest rates.
Federal Reserve Governor Lisa Cook on Wednesday said she feels the U.S. central bank should hold short-term interest rates steady for now but, with tariffs, the Iran war and a surge in AI-related investment pushing prices higher, she is prepared to hike rates if needed.
Chicago Federal Reserve President Austan Goolsbee told CNBC on Thursday that energy inflation tied to the war in Iran has lasted longer than expected. Goolsbee also sounded a warning for Asian economies in the interview, saying that, because they are energy importers, "it's more just a stagflationary shock of the old-fashioned variety."
New Zealand on Thursday forecast a budget deficit of NZ$15.06 billion for the fiscal year ending June 30 2026, narrower than a deficit of NZ$16.93 billion projected in its half-year fiscal update in December. Net debt excluding advances was forecast to peak at 46.1% of gross domestic product in 2027/28.
The U.S. dollar was higher on Thursday, just off its strongest level since early April touched in Asian trading hours, as doubts grew over prospects of a deal to reopen the Strait of Hormuz and focus shifted to possible U.S. interest rate hikes.
The U.S. dollar, long stuck in a tight trading range, could be in for a break higher as the Federal Reserve shifts its focus to fighting worrisome signs that inflation is heating up. In the first half of last year, the dollar slumped nearly 11%. Since then, it has settled into a narrow trading range, frustrating both those anticipating deeper losses and those hoping for a meaningful rebound.
Federal Reserve Vice Chair Philip Jefferson said on Wednesday that the current setting of monetary policy is in the right place amid ongoing upside risks to the inflation outlook.
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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