* Inflationary pressures fuel rate hike expectations. * Trump-Xi summit gives markets little to cheer. * Yen struggles at 158 level; turmoil weighs on sterling. By Samuel Indyk and Rae Wee. The dollar was a touch higher and heading for its biggest weekly gain in more than two months, as mounting inflationary pressures from higher energy prices fuelled bets on a Federal Reserve rate hike this year.
Canada will publish the April housing starts at 8:15 a.m. ET on Friday, said Bank of Montreal. The starts look to "tick up" to around 240,000 annualized units, according to the bank. BMO noted CMHC is looking into collecting additional data -- including building permits and more insight into the pre-construction world -- so the bank awaits more details on that front.
The US dollar rose against its major trading partners early Friday ahead of the New York Federal Reserve's Empire State manufacturing reading for May at 8:30 am ET and industrial production data for April at 9:15 am ET. The St. Louis Fed is expected to update its GDP nowcast estimate for Q1 around midday.
Incoming Federal Reserve chief Kevin Warsh's plans to shrink the U.S. central bank's "footprint" in financial markets could be constrained by the rising federal debt and potentially lost luster of U.S. Treasuries, analysts said.
Federal Reserve Chair Jerome Powell's immediate predecessors knew how to "go big" in a crisis, steer a committee towards an interest rate decision, and oversee changes in central bank strategy, all parts of the job that the lawyer and former private equity investor also had to learn.
Societe Generale in its early Friday economic news summary pointed out: -- Risk off as United States Treasury yields accelerate, OIS pricing 80% chance of Federal Reserve rate hike by December. -- Federal Reserve's Williams: no need to raise or cut rates now, policy in a good place. -- Day ahead: U.S. industrial production.
The U.S. dollar is headed for its strongest weekly performance in more than two months on Friday as Treasury yields climbed and traders scaled back expectations for Federal Reserve rate cuts. The U.S. Dollar Index rose to 99.15 at 4:12 a.m. ET, gaining about 1.3% for the week. UUP is among the biggest beneficiaries of the rising dollar.
Japanese government bond yields climbed across the curve on Friday, with several tenors reaching record highs on rising bets for Bank of Japan interest rate hikes amid building inflationary pressures. The benchmark 10-year JGB yield rose as much as 10 basis points to 2.73%, the highest level since May 1997.
The carry trade, where investors buy high-yielding major currencies and sell low-yielding ones, is having its best run in years, even with major risk-driven moves in global markets. This reflects a combination of low currency volatility, large gaps between interest rates in developed economies and the yen not getting a safe-haven lift from the Iran war.
The Bank of Japan will raise its key interest rate to 1.0% in June, nearly two-thirds of economists said in a Reuters poll, as it presses ahead with efforts to normalise monetary policy amid rising inflation concerns from the war in Iran.
Japan may face another round of broad-based price increases around summer, as firms ranging from food makers to hot spring facilities consider passing on soaring energy costs from the Middle East conflict, the central bank said on Friday.
Japan's economy is expected to have grown for a second quarter in January-March, supported by recovering exports and solid domestic demand, although the full impact of the Iran war had yet to be felt, a Reuters poll showed on Friday.
The dollar was a touch higher and heading for its biggest weekly gain in more than two months, as mounting inflationary pressures from higher energy prices fuelled bets on a Federal Reserve rate hike this year. The dollar's climb on Friday came alongside rising U.S. Treasury yields?that have jumped to one-year peaks as traders ramped up bets that the Fed would need to raise rates this year.
* Dollar up more than 1% this week, sharpest increase since early March. * Trump-Xi summit enters second day as investors await more details. * Yen struggles at 158 level; sterling weighed down by UK political turmoil. By Rae Wee.
* Fed's Barr says misguided to ease bank liquidity rules to lower Fed holdings. * Barr says efforts to cut Fed balance sheet via rule changes could increase risk. * Barr says current Fed policy system has worked well. By Michael S. Derby.
Federal Reserve Governor Michael Barr said Thursday that lowering banks' liquidity rules to reduce the size of the central bank's balance sheet is a bad idea and could undermine the safety of the financial system.
* April annual wholesale inflation hits 3-year high of 4.9% * Yen-based import price index spikes 17.5% yr/yr in April. * Rises driven by petroleum, chemical, metals goods prices. * Markets price in strong chance of BOJ rate hike in June. * Inflation, fiscal concerns lift 10-year yield to 29-year high. By Leika Kihara.
Peru's central bank held its benchmark interest rate for the eighth straight time on Thursday, keeping it at 4.25% in line with analysts' expectations after inflation in April remained outside the bank's target range.
Federal Reserve Governor Michael Barr said Thursday that lowering liquidity rules to get the central bank's balance sheet smaller is a bad idea and could undermine the safety of the financial system.
* Fed's Barr says misguided to ease bank liquidity rules to lower Fed holdings. * Barr says efforts to cut Fed balance sheet via rule changes could increase risk. * Barr says current Fed policy system has worked well. By Michael S. Derby.
Federal Reserve Bank of New York President John Williams said on Thursday he does not see a need right now for the central bank to weigh any change in interest rate policy amid the uncertainty created by the Middle East war. Monetary policy is in a "good place" right now, the official said in remarks given in New York.
Coupang Inc (CPNG): * Coupang Inc (CPNG): U.S. SENATE CONFIRMED KEVIN WARSH AS FEDERAL RESERVE CHAIR AND HE RESIGNED AS A DIRECTOR OF CO EFFECTIVE IMMEDIATELY - SEC FILING. * Coupang Inc (CPNG) - BOARD TO REDUCE SIZE BY ONE DIRECTOR AFTER WARSH RESIGNATION - SEC FILING Source text: Further company coverage:
VCI Global Limited (VCIG), today announced the launch of its Strategic Gold Treasury Program, a long-term treasury framework and capital allocation initiative designed to integrate physical gold holdings and gold-linked digital reserve assets into the Company?s broader treasury and platform strategy.
Federal Reserve Governor Stephen Miran said Thursday that he will resign from the Fed before or shortly before Kevin Warsh is sworn in as a governor and Fed Chair. Miran was filling a term that expired on Jan. 31, 2026, when he said that he would remain in the position until a successor was appointed.
U.S. Federal Reserve Governor Stephen Miran on Thursday said he would resign his seat on or shortly before Kevin Warsh is sworn in as the Fed's next chair, a necessary step since there is no other open seat on the seven-member board for Warsh to fill and Miran's term had technically expired in January.
Gold moved lower midafternoon Thursday as the dollar rose after a report showed U.S. retail-sales growth slowed in April. Gold for June delivery was last seen down US$22.20 to US$4,684.50. The U.S. Census Bureau reported retail sales roes by 0.5% last month, down from a revised 1.6% in March but matching expectations according to Marketwatch.
U.S. retail sales increased solidly for a third straight month in April, though part of the rise in receipts was due to a sharp rise in inflation since the start of the U.S.-backed 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.
Federal Reserve Bank of Cleveland President Beth Hammack reiterated on Thursday that a wide range of evidence supports the idea that an independent central bank makes policy more effectively.
* 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.
Weekly applications for unemployment insurance in the US increased more than estimated, while continuing claims also rose, government data showed Thursday. For the week through May 9, the seasonally adjusted number of initial claims grew by 12,000 to 211,000, the Department of Labor said.
IC Manage today announced major generative and agentic AI enhancements to its industry-leading GDP-AI design and IP management system. Built for high performance, reliability, and enterprise scale, GDP-AI leads semiconductor IP management, including IP lifecycle management, and serves as the design and IP data backbone for silicon lifecycle management.
* 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.
National Bank of Canada on Wednesday reiterated its sector-perform rating on the shares of Hydro One (HRNNF) while raising its price target to C$56.00 from $55.00 following the company's first-quarter results. The bank raised the price target after incorporating the company's incremental capex guidance through 2027, as well as the Red Lake Transmission Line within longer-term estimates.
Canada's existing home sales rose 0.7% month over month in April, while new listings jumped 4.1% month over month, said TD. Canadian average home prices rose much more sharply in April, increasing 2.6% month over month, noted the bank after Thursday's release of data from the Canadian Real Estate Association.
* Retail sales increase 0.5% in April, in line with expectations. * Core retail sales up 0.5%, marking fourth straight monthly gain. * Weekly jobless claims climb 12,000 to 211,000. * Import prices jump 1.9% in April; up 4.2% on a year-over-year basis. By Lucia Mutikani.
US retail sales in April rose for the third straight month, with analysts saying the increase largely reflected higher prices as the war in Iran kept fuel costs elevated. Sales rose 0.5% in April following a revised 1.6% gain in March, the Census Bureau reported Thursday, matching the consensus in a survey compiled by Bloomberg.
National Bank of Canada on Wednesday raised Torex Gold Resources' (TORXF) price target to C$101 from $98 with an outperform rating. The higher price target was based on a higher NTM EBITDA window and using a 6.5x EV/EBITDA multiple, National Bank said.
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.
Canadian existing home sales nudged up 0.7% month over month in April from March in seasonally adjusted terms, but no one is going to mistake this for a sign of spring for the chilly housing market, said Bank of Montreal on Thursday.
Gold edged higher early Thursday as treasury yields eased after a report showed U.S. retail-sales growth slowed in April. Gold for June delivery was last seen up $4.00 to US$4,710.70. The U.S. Census Bureau reported retail sales roes by 0.5% last month, down from a revised 1.6% in March but matching expectations according to Marketwatch.
The Bank of Canada's minutes for its April 29 rate decision were released on Wednesday, notes Rosenberg Research. "By far", it said, the most important quote was: "With slack in the labour market and excess supply in the economy, businesses would be less likely to pass higher costs on to consumers.
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.
US retail sales rose by 0.5% in April, as expected in a survey compiled by Bloomberg as of 7:35 am ET and following the previous month's 1.6% gain. Excluding a 0.4% decrease in motor vehicle sales, retail sales were up 0.7%, also as expected. Removing both motor vehicles and a 2.8% gain in gasoline station sales, retail sales were up 0.5% in April after a 0.7% increase in March.
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.
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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