The U.S. dollar held steady on Monday after a weekly loss as markets awaited the results of peace talks in the Middle East and signals on the timing of central bank rate hikes. The dollar index edged lower last week on hopes for a deal between the United States and Iran to open the Strait of Hormuz shipping lane for oil.
The U.S. dollar held steady on Monday after a weekly loss as markets awaited the results of peace talks in the Middle East and signals on the timing of central bank rate hikes. The dollar index edged lower last week on hopes for a deal between the United States and Iran to open the Strait of Hormuz shipping lane for oil.
U.S. Federal Reserve Governor Jerome Powell on Sunday warned about the impact of a politicized Fed and made a broader call for the defense of democratic institutions in his first public remarks since the end of his eight-year stint as head of the central bank.
Japan's manufacturing sector expanded in May at a slightly slower pace, as record export order growth was offset by surging costs driven by the Middle East war and inflated output from stockpiling, a private survey showed on Monday.
* Powell urges defense of democratic institutions, warns they face a 'stress test' * Powell says politicized Fed woud lost public trust. * Fed's structure designed to shield policy from politics. By Howard Schneider.
The increased use of stablecoins could reinforce the dollar's global dominance, undermine some nations' ability to set monetary policy and even diminish the role of the euro, European Central Bank board member Isabel Schnabel said on Monday.
China's central bank is making a broad push to increase the use of digital yuan at home and abroad, several industry sources said, setting Beijing on a different - and potentially competing - path from the United States in shaping the future of money.
By Manishi Raychaudhuri. Investors are piling into South Korea and Taiwan for semiconductor stocks, but the AI boom isn't just fattening profits at North Asia's chip champions. Real GDP growth for two of North Asia's AI powerhouses - Taiwan and South Korea - has risen over the past 12 to 15 months, FactSet data shows, with Taiwan's now running at 11.8% in the first quarter.
Bond market volatility is boosting the case for Japan's central bank to pause the unwinding of its massive debt holdings next fiscal year, which would give Prime Minister Sanae Takaichi some relief amid growing investor concerns about her spending plans.
The popularity of stablecoins could soon fade, replaced by tokenised deposits, or digital versions of traditional bank deposits, Bank of England policymaker Megan Greene said on Sunday, even as some colleagues took a different view.
The popularity of stablecoins could soon fade, replaced by tokenised deposits, or digital versions of traditional bank deposits, Bank of England policymaker Megan Greene said on Sunday, even as some colleagues took a different view.
* May nonfarm payrolls report due on June 5. * Job growth of 85,000 expected as investors wary of hot number. * Broadcom (AVGO) results pose test for AI trade, soaring semi shares. By Lewis Krauskopf. Investors will turn to an important labor market update next week as they weigh whether simmering inflation and the potential for interest rate hikes could derail the rally in U.S. stocks.
The Czech Republic will "probably" miss NATO's target to boost military spending to 2% of gross domestic product?this year, Prime Minister Andrej Babis said in an interview published on Sunday. "We will do our best" to meet the pledge, Babis told the Financial Times, but he said his government was grappling with a budget shortfall due to overspending by his pro-EU predecessor.
* China's official manufacturing PMI falls to 50 in May, matching forecast. * New export orders contract as overseas demand weakens. * Input costs remain elevated even as raw material price gains slow. * Non-manufacturing PMI improves to 50.1. By Ethan Wang, Yukun Zhang and Ryan Woo.
China's factory activity came in flat in May, an official survey showed on Sunday, indicating that the manufacturing sector was under pressure from weak domestic demand and higher production costs.
Central bank independence is again coming under pressure as policymakers push through unpopular measures to curb surging prices, prompting political interference that could erode trust and deepen the crisis, current and former officials said.
* EU considers new trade tools, supply chain diversification rules. * China says EU cites selective data in trade imbalance claims. * EU tougher stance will need to bridge Franco-German divide. By Julia Payne.
China's central bank is making a broad push to increase the use of digital yuan at home and abroad, several industry sources said, setting Beijing on a different - and potentially competing - path from the United States in shaping the future of money.
* S&P 500 marks longest weekly winning streak since December 2023. * Dollar down on the week. * US Treasury yields dip for fourth straight session. * Sources say Hormuz deal awaiting Trump's approval. By Stephen Culp.
* MOODY'S RATINGS CHANGES MALI'S OUTLOOK TO NEGATIVE, AFFIRMS RATINGS AT CAA2. * MOODY'S: OUTLOOK CHANGE TO NEGATIVE REFLECTS RISK THAT MALI'S FRAGILE POLITICAL AND SECURITY SITUATION WILL CONTINUE TO DETERIORATE Source text:
U.S. Treasury yields edged lower a fourth straight day on Friday, closing out a week in which reported progress in efforts to secure a truce between the United States and Iran had spurred some optimism on markets.
* S&P 500 set for longest weekly winning streak since December 2023. * Global stocks hit fresh record high. * Dollar set for weekly dip. * U.S. Treasury yields dip for fourth straight session. * Sources say Hormuz deal awaiting Trump's approval. By Stephen Culp.
Federal Reserve officials continued on Friday to signal the U.S. central bank may need to raise interest rates in the future if the war in the Middle East leads to a persistent increase in already-high inflation. The potential shift in the monetary policy outlook has even been embraced by Fed Vice Chair for Supervision Michelle Bowman, one of the central bank's most dovish policymakers.
Federal Reserve officials continued on Friday to signal the U.S. central bank may need to raise interest rates in the future if the war in the Middle East leads to a persistent increase in already-high inflation. The potential shift in the monetary policy outlook has even been embraced by Fed Vice Chair for Supervision Michelle Bowman, one of the central bank's most dovish policymakers.
* Loonie weakens 0.1% against the U.S. dollar. * GDP falls 0.1% annualized in first quarter. * Price of oil decreases 1.6% * Bond yields ease across steeper curve. By Fergal Smith.
* U.S. and Iran have agreed to extend ceasefire, sources say. * Canada's Q1 GDP contracts in the first quarter. By Niket Nishant. Canada's main stock index climbed on Friday and was on course for its second consecutive month of gains, as renewed hopes for a Middle East peace deal buoyed investor sentiment.
* S&P 500 set for longest weekly winning streak since December 2023. * Global stocks hit fresh record high. * Dollar set for weekly dip. * U.S. Treasury yields dip for fourth straight session. * Sources say Hormuz deal awaiting Trump's approval. By Stephen Culp.
U.S. Treasury yields were headed lower for a fourth straight day on Friday morning, closing out a week in which reported progress in efforts to secure a truce between the United States and Iran had spurred some optimism on markets.
* BANK OF CANADA TO AUCTION C$5 BILLION OF 2-DAY FUNGIBLE CASH MANAGEMENT BILLS ON JUNE 1, FINAL CALL FOR TENDERS SHOWS. * BANK OF CANADA TO AUCTION C$3 BILLION OF 4-DAY NON-FUNGIBLE CASH MANAGEMENT BILLS ON JUNE 1, FINAL CALL FOR TENDERS SHOWS. Source text: Further company coverage: [ ]
Federal Reserve Bank of Philadelphia President Anna Paulson said Friday "mildly restrictive" monetary policy is "well positioned" for an uncertain outlook where inflation pressures remain too high.
Canada's main stock index opened slightly higher on Friday amid reports that a deal has been reached to extend the U.S.-Iran ceasefire, even as gains were kept in check by data that showed Canada's economy contracted on an annualized basis in the first quarter. At 9:30 a.m. ET, the Toronto Stock Exchange's S&P/TSX Composite Index was up 0.12% at 34,557.46 points.
Federal Reserve Vice Chair for Supervision Michelle Bowman said on Friday the Middle East war's impact on the economy, while still being measured, could lead to persistent rises in inflation that might require tighter monetary policy.
The U.S. trade deficit in goods contracted more than expected in April as a surge in exports blunted rising imports, but economists cautioned the trend was unlikely to be sustainable, with businesses ramping up investment in artificial intelligence.
* First quarter GDP contracts 0.1% on an annualized basis. * Q1 decline follows 1% contraction in Q4 on annual basis. * GDP was flat in Q1 on a quarterly basis, StatsCan said. * Advance estimate showed growth in April likely at 0.4% By Promit Mukherjee.
The U.S. trade deficit in goods contracted in April as a surge in exports more than offset rising imports, a trend that if sustained could see trade contributing to economic growth in the second quarter. The goods trade gap narrowed 3.4% to $82.4 billion last month, the Commerce Department's Census Bureau said on Friday. Goods exports increased $8.5 billion to $219.7 billion.
* EU considers new trade tools, supply chain diversification rules. * China says EU cites selective data in trade imbalance claims. * EU tougher stance will need to bridge Franco-German divide. By Julia Payne.
Brazil's gross domestic product grew 1.1% in the first quarter from the previous three months, official data showed on Friday, compared with 1.0% growth forecast in a Reuters poll. On an annual basis, Latin America's largest economy expanded 1.8%, statistics agency IBGE said, matching market expectations.
Brazil's public sector gross debt rose to 80.4% of gross domestic product in April, from 80.0% the month before, central bank data showed on Friday. The public sector recorded a primary surplus of 24.624 billion reais for the month, beating the 22.0 billion reais forecast in a Reuters poll of economists.
Federal Reserve Bank of Kansas City President Jeffrey Schmid said the current arc of inflationary pressures means that the central bank may need to weigh tightening the overall stance of monetary policy.
Futures tracking Canada's blue-chip stocks rose on Friday as a deal to extend the U.S.-Iran ceasefire renewed hopes for an end to the Middle East conflict, while investors also awaited domestic GDP data due to be released later in the day.
Federal Reserve Bank of Kansas City President Jeffrey Schmid said on Friday that already-hot levels of inflation make it harder to assume the current energy shock will have only a temporary impact on pricing and can be ignored by the central bank.
Investors will turn to an important labor market update next week as they weigh whether simmering inflation and the potential for interest rate hikes could derail the rally in U.S. stocks. Broadcom's (AVGO) results also pose a test in the coming week for the red-hot AI trade.
Some people inside and outside the Federal Reserve agree that rule changes easing how much cash banks need to keep on hand for emergencies could allow the central bank to further cut the size of its $6.7 trillion balance sheet but also harbor doubts holdings could be slashed by the degree new Chairman Kevin Warsh desires.
* Sterling dips, remains within recent range. * BoE's Bailey said allowing inflation overshoot is justified. * Markets still expect BoE rate hike this year. By Samuel Indyk.
* May nonfarm payrolls report due on June 5. * Job growth of 96,000 expected as investors wary of hot number. * Broadcom (AVGO) results pose test for AI trade, soaring semi shares. By Lewis Krauskopf. Investors will turn to an important labor market update next week as they weigh whether simmering inflation and the potential for interest rate hikes could derail the rally in U.S. stocks.
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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