* Dollar at one-year highs, keeps yen near intervention zone. * Oil prices rise on peace deal uncertainty. * U.S. rate-hike odds keep dollar supported. * Tech valuation worries linger. By Ankur Banerjee.
China's central bank on Monday debuted overnight reverse repo operations, offering 300 billion yuan to financial institutions, according to an online statement. The People's Bank of China did not announce the borrowing cost for the overnight reverse repos. The PBOC also said it injected 157.5 billion yuan through seven-day reverse repos, with the rate unchanged at 1.4%, it said in the statement.
Gold prices slipped on Monday as renewed
U.S.-Iran hostilities pushed oil prices higher, while
expectations of U.S. Federal Reserve interest rate hikes further
weighed on the metal.
Sovereign wealth funds and central banks managing $29 trillion in assets are turning to energy assets, and raising concerns about the dollar, in a portfolio reassessment driven by unprecedented geopolitical shifts, according to an Invesco survey published on Monday.
* 61% of central banks say US debt hurts the dollar's long-term reserve role, Invesco found. * One-third plan to increase gold holdings as part of diversification, the survey found. * Some reviewing reliance on U.S.-based custodians, counterparties and clearing infrastructure. By Libby George.
* Payrolls data for June due on Thursday. * Swings in tech, semiconductor shares keep investors on edge. * Rate-hike bets in focus following hawkish Fed meeting. By Lewis Krauskopf.
Federal Reserve Chairman Kevin Warsh's early leadership of the U.S. central bank faces fresh tests this week, with an appearance before a high-profile economic conference in Portugal and the U.S. Supreme Court's expected ruling on the legality of President Donald Trump's effort to fire a Fed policymaker.
* US Supreme Court expected to rule on whether Fed Governor Cook keeps her board seat. * Legal case is key to future presidential influence over Fed. * Warsh to join ECB, BOE and Bank of Canada leaders at conference in Portugal. By Howard Schneider.
Strategic petroleum releases helped avert a sharper rise in oil prices as a result of the war in the Middle East, but the global economy faces significant downside risks if a fragile ceasefire between the U.S. and Iran doesn't hold, IMF chief economist Pierre-Olivier Gourinchas said on Friday.
June 26 - S&P Global affirmed its "AA+" credit rating for the U.S. on Friday, saying the economy's resilience supported solid fiscal revenue collection. The ratings agency said it expected the U.S. economy to grow at around 2% over 2026 to 2029, adding that despite heightened political polarization, strong institutions and the system of checks and balances will continue to anchor policy outcomes.
June 26 - S&P Global affirmed its "AA+" credit rating for the U.S. on Friday, saying the economy's resilience supported solid fiscal revenue collection. The ratings agency said it expected the U.S. economy to grow at around 2% over 2026 to 2029, adding that despite heightened political polarization, strong institutions and the system of checks and balances will continue to anchor policy outcomes.
* Dollar eases but on pace for strong June. * Yen remains at levels primed for intervention. * Consumer sentiment gauge increases but below estimate. The dollar fell for a second straight session on Friday as recent economic data and a drop in oil prices slightly cooled expectations for Federal Reserve rate hikes, although the yen remained in territory that left it primed for an intervention.
Global trade flows and relationships are shifting after U.S. President Donald Trump imposed unilateral tariffs on most countries, but the U.S. dollar continues to anchor international trade, banking and central bank reserves, the International Monetary Fund's chief economist said on Friday.
Global trade flows and relationships are shifting after U.S. President Donald Trump imposed unilateral tariffs on most countries, but the U.S. dollar continues to anchor international trade, banking and central bank reserves, the International Monetary Fund's chief economist said on Friday.
The International Monetary Fund's chief economist on Friday said Federal Reserve Chair Kevin Warsh's plan to reduce forward rate guidance on monetary policy was "entirely appropriate," although central banks would always need to provide some long-term guidance for markets.
* IMF top economist OK with Fed's Warsh backing off from forward guidance. * Fed's move under Warsh sends a strong signal. * Have seen other central banks reducing guidance as well. By Andrea Shalal.
* Indexes up: Dow 0.08%, S&P 500 0.23%, Nasdaq 0.28% * OpenAI considering to hold off IPO until next year - report. * Philadelphia chips index set for worst week since March 2025. * Healthcare, Staples gain offset tech weakness. By Shashwat Chauhan and Joel Jose.
* Dollar eases but on pace for strong June. * Yen remains at levels primed for intervention. * Consumer sentiment gauge increases but below estimate. The dollar slipped for a second straight session on Friday as recent economic data and a drop in oil prices cooled expectations for Federal Reserve rate hikes, although the yen remained in territory that left it primed for an intervention.
* Goods trade deficit widens 27.4% to $105.8 billion in May. * Goods imports jump 3.6% to $313.4 billion, a 14-month high. * Exports of goods drop 5.4% to $207.7 billion. By Lucia Mutikani.
U.S. consumer sentiment rebounded from record lows in June, though households remained worried about the high cost of living, a survey showed on Friday. The University of Michigan's Surveys of Consumers said its Consumer Sentiment Index increased to a final reading of 49.5 this month from 44.8 in May. It was a slight improvement from 48.9 earlier this month.
U.S. consumer sentiment rebounded from record lows in June, though households remained worried about the high cost of living, a survey showed on Friday. "The cost of living remains at the forefront of consumers' minds," said Joanne Hsu, the director of the Surveys of Consumers.
* Fed funds futures traders price 63% odds of a rate hike by September. * Nine of 18 Fed policymakers projected at least one 2026 rate increase. * Reuters-polled economists expect June payrolls growth of 110,000 jobs. By Karen Brettell.
* Indexes down: Dow 0.44%, S&P 500 0.83%, Nasdaq 1.33% * OpenAI considering to hold off IPO until next year - report. * Synaptics (SYNA) up as Onsemi to buy co in $7 bln all-stock deal. By Shashwat Chauhan and Joel Jose.
* Futures down: Dow 0.24%, S&P 500 0.52%, Nasdaq 1.3% * OpenAI considering to hold off IPO until next year - report. * Synaptics (SYNA) up as Onsemi to buy co in $7 bln all-stock deal. By Shashwat Chauhan and Joel Jose.
The U.S. trade deficit in goods swelled to a 14-month high in May as businesses boosted imports, likely to avoid shortages and higher prices related to the war in the Middle East, prompting economists to cut their growth estimates for the second quarter. The sharp deterioration in the goods trade deficit, reported by the Commerce Department on Friday, also reflected a decline in exports.
The U.S. trade deficit in goods widened sharply in May as businesses boosted imports to avoid shortages and higher prices related to the Middle East conflict, which could see economists cut their estimates for second-quarter gross domestic product. The goods trade gap increased 27.4% to $105.8 billion last month, the Commerce Department's Census Bureau said on Friday.
* BRAZIL'S CENTRAL BANK SELLS 20,000 REVERSE FX SWAP CONTRACTS AT AUCTION - STATEMENT. * BRAZIL'S CENTRAL BANK SELLS $1 BLN IN SPOT DOLLAR AUCTION - STATEMENT.
Brazil's current account deficit reached $3.185 billion in May, central bank data showed on Friday, narrower than the $4.159 billion shortfall expected in a Reuters poll. Foreign direct investment totaled $7.974 billion for the month, topping the $5.750 billion estimated in the poll.
* Yen remains in intervention danger zone. * Dollar takes a step back but set for strong June. By Dhara Ranasinghe and Gregor Stuart Hunter. The dollar slipped against most other major currencies on Friday as Federal Reserve rate hike bets were tempered a touch by the latest economic data and falling oil prices, allowing the yen - trading in an intervention danger zone - to find firmer ground.
The U.S. Federal Reserve will hold its benchmark interest rate steady for the rest of this year, defying financial market pricing for two hikes, according to an even larger majority of economists polled by Reuters. Inflation is running above 4%, the highest in more than three years and double the Fed's target, alongside solid growth and improving labour market conditions.
* Payrolls data for June due on Thursday. * Swings in tech, semiconductor shares keep investors on edge. * Rate-hike bets in focus following hawkish Fed meeting. By Lewis Krauskopf.
* All precious metals head for weekly loss. * Sustained break below $4,000 could see bears test $3,886, analyst says. * Traders see 61% chance of a September rate hike - CME FedWatch. By Sumit Saha. Gold prices gained on Friday as recent U.S. inflation data weighed on the dollar and led markets to slightly trim rate-hike bets.
U.S. Federal Reserve Chairman Kevin Warsh has tapped veteran Fed staff economists Daniel Covitz and Eric Engstrom to serve as advisers, experts whose recent work included a critical look at the Fed's Summary of Economic Projections and the reasons behind rising U.S. Treasury yields. The appointments were first reported by the Wall Street Journal and confirmed by a source familiar with them.
* Futures down: Dow 0.11%, S&P 500 0.53%, Nasdaq 1.16% Futures tied to the tech-heavy Nasdaq led Wall Street losses on Friday, as chip stocks came under renewed pressure after a sharp rally in the previous session, while some megacap technology names also slipped.
Federal Reserve Chairman Kevin Warsh has tapped Daniel Covitz and Eric Engstrom, two veteran central-bank economists, to serve as advisers, the Wall Street Journal reported on Friday, citing people familiar with the matter. Reuters could not immediately confirm the report.
Global equity fund inflows slowed sharply in the week to June 24, as concerns over debt-funded technology spending and a hawkish stance of the U.S. Federal Reserve cooled risk appetite. Investors purchased a net $7.51 billion worth of global equity funds during the week, down about 86% from net buying of $55.53 billion in the previous week, according to LSEG Lipper data.
Global equity fund inflows slowed sharply in the week to June 24, as concerns over debt-funded technology spending and a hawkish stance of the U.S. Federal Reserve cooled risk appetite. Investors purchased a net $7.51 billion worth of global equity funds during the week, down about 86% from net buying of $55.53 billion in the previous week, according to LSEG Lipper data.
* Tokyo CPI accelerates in sign of widening Iran war price pressures. * Dollar sags as US data, Fed comments spur paring of rate-hike bets. * Yen remains in intervention danger zone at weaker than 160 per dollar. By Dhara Ranasinghe and Gregor Stuart Hunter.
* All precious metals head for weekly loss. * Dollar on track for second consecutive weekly gain. * U.S. PCE surged 4.1% in the 12-month period ended May. By Pablo Sinha. Gold prices were on track for a fourth consecutive weekly fall on Friday, as a resilient dollar and expectations of faster U.S. rate hikes to tame inflation kept bullion pressured near the key $4,000-per-ounce level.
- A wild first half of the year is almost over, with focus shifting to how central banks, especially the Federal Reserve, steer markets in the months ahead. The new Fed chief attends the European Central Bank's Sintra conference, while U.S. jobs numbers, euro zone inflation readings, British politics and tech are in focus.
* Tokyo CPI accelerates in sign of widening Iran war price pressures. * Dollar sags as US data, Fed comments spur paring of rate-hike bets. * Yen remains in intervention danger zone at weaker than 160 per dollar. By Gregor Stuart Hunter.
* All precious metals head for weekly loss. * Dollar on track for second straight weekly gain. * U.S. PCE surged 4.1% in the 12 months through May. By Pablo Sinha. Gold was set on Friday for a fourth straight weekly fall, as a resilient dollar and expectations of faster U.S. rate hikes to tame inflation kept bullion pressured near $4,000 per ounce.
The dollar fell for a second straight session on Friday as recent economic data and a drop in oil prices slightly cooled expectations for Federal Reserve rate hikes, although the yen remained in territory that left it primed for an intervention.
* Tokyo core CPI rises 1.6% yr/yr vs forecast +1.6. * Index excluding fresh food, fuel rises 1.9% yr/yr. * Data among factors BOJ will scrutinise at July meeting. By Makiko Yamazaki and Leika Kihara.
Annual core inflation in Japan's capital accelerated in June, data showed on Friday, a sign of broadening price pressures from the Middle East conflict that keeps the central bank on track to consider further raise interest rates.
Annual core inflation in Japan's capital accelerated in June, data showed on Friday, a sign of broadening price pressures from the Middle East conflict. The data will be among the factors the Bank of Japan will scrutinise at next month's policy meeting, when the board will conduct a quarterly review of growth and price forecasts.
* Tokyo core CPI rises 1.6% yr/yr vs forecast +1.6. * Index excluding fresh food, fuel rises 1.9% yr/yr. * Data among factors BOJ will scrutinise at July meeting. Annual core inflation in Japan's capital accelerated in June, data showed on Friday, a sign of broadening price pressures from the Middle East conflict.
Federal Home Loan Mortgage Corp (FMCC) : * FREDDIE MAC: TOTAL MORTGAGE PORTFOLIO INCREASED AT AN ANNUALIZED RATE OF 0.9% IN MAY. * FREDDIE MAC: SINGLE-FAMILY DELINQUENCY RATE REMAINED FLAT AT 0.59% IN MAY. * FREDDIE MAC: MULTIFAMILY DELINQUENCY RATE INCREASED FROM 0.43% APRIL TO 0.47% IN MAY. * FREDDIE MAC: AGGREGATE UNPAID PRINCIPAL BALANCE OF MORTGAGE-RELATED INVESTMENTS PORTFOLIO DECREASED BY APPRO...
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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