16 meeting. * Ueda all but cemented June hike in hawkish narrative pivot. * Board to scrutinise war developments in reaching final decision. * No explicit opposition from dovish administration so far. * BOJ eyes pause or slowdown in bond taper next fiscal year. By Leika Kihara.
The Bank of Japan is expected to raise interest rates this month unless a sharp escalation in the Middle East conflict upends markets, three sources said, as rising fuel costs from the energy shock add to mounting price pressure in the economy.
* BOJ likely to raise policy rate to 1% at June 15-16 meeting. * Ueda all but cemented June hike in hawkish narrative pivot. * Board to scrutinise war developments in reaching final decision. By Leika Kihara.
The Federal Reserve's quarterly "dot plot" rate forecasts may soon lose their last projected rate cut, the so-called easing dot, and the plot itself could possibly disappear altogether. The new Fed chair is busily setting out his stall and dutifully consulting staff before his first policy meeting later this month.
Japan's government expects the Bank of Japan to conduct appropriate monetary policy toward a sustainable 2% inflation target that is driven by wage growth in close coordination with the government, Chief Cabinet Secretary Minoru Kihara said on Thursday.
Japanese government bond yields were varied on Thursday, with the benchmark edging higher while short-end yields extended gains as investors weighed firmer Bank of Japan rate-hike expectations and global inflation concerns.
* Fed's Beige Book highlights inflationary pressures, modest growth. * Outlook for economic growth uncertain, with signs of weak consumer spending. * Warsh convenes his first policy meeting as Fed chief in two weeks. * Fed's Logan says she is concerned a rate hike may be needed. By Ann Saphir and Howard Schneider.
Federal Reserve Chairman Kevin Warsh inherits an economy bolstered by an AI investment boom but pinched by rising prices from the Iran war, a Fed survey showed on Wednesday, setting up a fight over an interest rate hike when he runs his first policy meeting in two weeks.
* Japan more exposed to spillover effects of inflation. * BOJ will keep raising rates at 'appropriate pace', Ueda says. * Ueda signals rate-hike chance even if Iran uncertainty remains. * Delaying rate hike may inflict huge burden on economy. * Speech heightens chance of June rate hike, analysts say. By Leika Kihara.
Federal Reserve Bank of Dallas President Lorie Logan on Wednesday said she feels monetary policy is currently "neutral or perhaps even a bit loose," in contrast with what she feels the economy needs in light of inflation that's too high.
Dallas Federal Reserve President Lorie Logan on Wednesday said signs of robust economic growth and corporate earnings "going gangbusters" are helping to make her worried that the Fed may need to raise interest rates this year to get inflation back down to its 2% target.
Financial stocks fell in late Wednesday afternoon trading with the NYSE Financial Index decreasing 1% and the State Street Financial Select Sector SPDR ETF shedding 1.1%. The Philadelphia Housing Index dropped 0.4%, and the State Street Real Estate Select Sector SPDR ETF rose 0.2%. Bitcoin fell 2.5% to $65,538.2, and the yield for 10-year US Treasuries rose 3.6 basis points to 4.49%. In economi...
* Fed's 'Beige Book' shows pervasive impact of higher energy prices. * Outlook for economic growth uncertain, with signs of weak consumer spending. * Warsh convenes his first policy meeting as Fed chief in two weeks. By Ann Saphir and Howard Schneider.
US economic activity increased at "a slight to moderate" pace in 10 of the 12 Federal Reserve districts since mid-April, though underlying signs were less encouraging, the Fed's latest Beige Book released Wednesday showed.
Brazil's trade surplus reached $7.8 billion in May, official data showed on Wednesday, above market expectations, as higher prices drove export growth at a faster pace than imports. Economists polled by Reuters had forecast a $7.7 billion surplus for the month.
Federal Reserve Chairman Kevin Warsh inherits an economy riding an investment boom but showing signs of consumer strain, weak hiring and rising prices, according to reports from his colleagues that will frame his debut meeting in two weeks as the head of the U.S. central bank.
U.S. economic activity increased a bit in recent weeks, employment was little changed, and the fallout from higher energy prices due to the war in the Middle East was pervasive, the Federal Reserve said on Wednesday, two weeks before Kevin Warsh convenes his first policy meeting as head of the U.S. central bank.
Brazil's trade surplus reached $7.82 billion in May, official data showed on Wednesday. Economists polled by Reuters had forecast a narrower $7.65 billion surplus for the month.
Health care leads all sectors with 20,200 net hires; 17 of 19 sectors, all four U.S. regions, and every company size tier post positive results SAN FRANCISCO, June 3, 2026 Gusto, the leading partner for small businesses, today released its May 2026 Small Business Jobs Report, showing America's small businesses added an estimated 83,900 net new jobs on a seasonally adjusted basis last month.
The US services sector saw continued expansion in May, with Institute for Supply Management data showing a faster growth rate sequentially, but S&P Global (SPGI) pointing to a deceleration. The ISM's purchasing managers' index rose to 54.5 last month from 53.6 in April.
Canada's gross domestic product has now contracted for two consecutive quarters and the recession word is making the rounds again, said TD after Friday's Q1 GDP data. Defining a recession in Canada isn't as straightforward as the popular "two consecutive quarters of negative GDP" rule of thumb, writes the bank in a note to clients.
The Organization for Economic Co-operation and Development lowered its global economic growth projection for 2026, cautioning that the fallout from the Middle East conflict may linger for some time even after its resolution.
Industrial production in Brazil exceeded market expectations in April, data from statistics agency IBGE showed on Wednesday, expanding for a fourth consecutive month despite tight monetary conditions. * Output rose 0.7% in April from March, while economists in a Reuters poll had expected a 0.4% increase. * Production expanded in two of the four main categories surveyed, IBGE said.
New York Federal Reserve President John Williams said on Wednesday he does not expect upside risks to inflation caused by the war in the Middle East to be long-lasting and reiterated there was no need at this time to change U.S. monetary policy.
Federal Reserve Bank of New York President John Williams reiterated on Wednesday that he does not believe the U.S. central bank needs to change the setting of short-term interest rates despite upside inflation risks tied to the Middle East war and other forces. "Monetary policy, I think, is exactly in the right place," Williams said in an interview on Yahoo Finance.
Canada's Q1 gross domestic product weakness prompts UBS to lower its 2026 growth forecast to 1.0%, although the headline technical recession overstates the degree of underlying softness given volatile trade and inventory swings. While the picture isn't all negative, the bank has lowered its forecast for real GDP growth in 2026.
The Institute for Supply Management's US services index rose to a reading of 54.5 in May from 53.6 in April, compared with expectations for a smaller increase to a reading of 53.8 in a survey compiled by Bloomberg.
U.S. services sector activity picked up in May as businesses preemptively placed orders and rebuilt?inventories in anticipation of shortages and higher prices because of the war with Iran. The Institute for Supply Management said on Wednesday its nonmanufacturing purchasing managers index increased to 54.5 last month from 53.6 in April.
* Services PMI increases 0.9 percentage point to 54.5 in May. * New services orders jump as businesses replenish inventories. * Measure of prices paid for inputs increases to highest level since August 2022. By Lucia Mutikani.
Canada's services economy expanded at a modest pace in May as the Middle East conflict raised economic uncertainty and higher fuel prices contributed to the fastest increase in operating costs in four years, S&P ?Global's Canada services PMI data showed on Wednesday.
The economic instability of the last two decades ? marked by the 2008 global financial crisis, the 2020 COVID-19 pandemic, and subsequent surge in global inflation ? shattered a period of economic stability, and the collapse in global GDP per capita during 2020 was sharper than in any single year of World War I, World War II, or the Great Depression.
* US strikes near Hormuz. * US private payrolls increase in May, ADP says. * US NFP report due on Friday. By Ashitha Shivaprasad. Gold prices dipped on Wednesday, weighed down by expectations that war-driven inflation will keep interest rates elevated, while investors focused on developments in the Middle East and upcoming economic data.
ADP's monthly measure of private payrolls showed a 122,000 increase in May, slightly above expectations compiled by Bloomberg as of 7:30 am ET for an increase of 120,000.
U.S. private payrolls increased more than expected in May, the ADP's national employment report showed on Wednesday. The ADP report is jointly developed with the Stanford Digital Economy Lab, and was published ahead of the Bureau of Labor Statistics' more comprehensive and closely watched employment report for May on Friday.
ROSELAND, N.J., June 3, 2026 ?Private sector employment increased by 122,000 jobs in May and pay was up 4.4 percent year-over-year according to the May?ADP National Employment Report??produced by ADP Research in collaboration with the Stanford Digital Economy Lab.
Industrial production in Brazil rose 0.7% in April from March, government statistics agency IBGE said on Wednesday, marking the fourth consecutive monthly gain and beating the median estimate of a 0.4% rise in a Reuters poll. Output was up 2.7% year-on-year in April, IBGE added.
Euro zone government bond yields rose on Wednesday, with traders now pricing in a more than 50% probability of three European Central Bank rate hikes by year-end as U.S.-Iran peace talks stalled.
The U.S. dollar is expected to stay range-bound in the near term before weakening later this year, FX strategists said in a Reuters survey, on optimism the Middle East war will end soon and its impact on inflation will be temporary. Since the conflict began three months ago, the dollar has tracked risk sentiment - rising on escalation and slipping as tensions eased.
SOLOWIN HOLDINGS (AXG), a leading financial technology firm bridging traditional and digital assets, today announced that AX Coin Bahrain B.S.C., the Company's stablecoin issuance entity and a key subsidiary, has been officially licensed by the Central Bank of Bahrain to carry out stablecoin issuer activities.
* UK services PMI falls to 49.3 in May from April's 52.7. * Drop is less than reported in initial flash data. * Firms raise prices at second-fastest rate since 2022. * BoE policymaker concerned at broad swathe of price increases. By Suban Abdulla and David Milliken.
Societe Generale in its early Wednesday economic news summary pointed out: -- Bond yields, US dollar carry over gains after the strongest gain in JOLTS job openings since April 21. -- ECB: European Central Bank Governing Council member Pierre Wunsch repeats case for June rate hike in FT, says if the U.S. and Iran agree to a peace deal, the discussion "might be a bit less easy.
The European Central Bank met commercial lenders last week to discuss the potential threat from the newest artificial intelligence models and will follow up with demands for practical defence measures, board member Frank Elderson said.
With the Iran war stretching into its fourth month, U.S. retail companies that have so far banked on a resilient consumer could face a tougher road ahead as rising gas prices and economic pain gradually erode the buffer.
Global economic growth may temporarily slow, Swiss National Bank Chairman Martin Schlegel said on Wednesday, citing increased uncertainty. Here are other details of what Schlegel mentioned at an event for the Swiss hospitality industry in Bern, according to the presentation slides.
* Japan more exposed to spillover effects of inflation. * BOJ will keep raising rates at 'appropriate pace', Ueda says. * Ueda signals rate-hike chance even if Iran uncertainty remains. * Delaying rate hike may inflict huge burden on economy. * Speech heightens chance of June rate hike, analysts say. By Leika Kihara.
* Sberbank raises 2026 commodity exports revenue forecast. * Sberbank forecasts 2026 GDP growth at between 0.5% and 1% * Sberbank expects central bank to accelerate rate cuts. By Gleb Bryanski and Elena Fabrichnaya.
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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