* 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.
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. The government reported on Wednesday that producer prices recorded their biggest increase in four years in April.
* White House weighs gas tax suspension as fuel prices surge, options dwindle. * Polls show most Americans feel financial strain, many doubt war is worth the cost. * Some Republicans back gas tax suspension, but party leaders are so far noncommittal. By Jarrett Renshaw, Nandita Bose and Jacob Bogage.
U.S. retail sales increased further in April, but some of the rise in receipts was likely due to higher inflation as the war with Iran boosted prices of energy products and other commodities. Retail sales rose 0.5% last month after a downwardly revised 1.6% jump in March, the Commerce Department's Census Bureau said on Thursday. The U.S.-Israeli conflict with Iran is driving up inflation.
US initial jobless claims rose to a level of 211,000 in the week ended May 9 from a downwardly revised 199,000 level in the previous week, compared with expectations for a smaller increase to 205,000 in survey of analysts compiled by Bloomberg. The four-week moving average rose by 750 to 203,750 after decreasing by 4,750 to a level of 203,000 in the previous week.
U.S. retail sales increased further in April, but some of the rise in receipts was likely due to higher inflation as the war with Iran boosted prices of energy products and other commodities. The U.S.-Israeli conflict with Iran is driving up inflation. Gasoline prices rose 12.3% in April, data from the U.S. Energy Information Administration showed.
Restrictions proposed by the BOE prompted criticism from the crypto industry, which said they risked preventing the U.K. from being competitive in the digital economy.
The US dollar rose against its major trading partners early Thursday ahead of a busy day of economic releases, starting with weekly jobless claims, April retail sales, and April import and export price data, all at 8:30 am ET.
Bitcoin trades below $80,000 on Thursday morning as hotter-than-expected U.S. producer inflation data weakened expectations for near-term Federal Reserve rate cuts. Bitcoin ETFs saw $635.2 million in net outflows on Wednesday, while Ethereum ETFs reported $36.3 million in net outflows. Meme coin market capitalization is trading 1.6% lower at $38.5 billion over the past 24 hours.
Jeff Rosenberg, senior portfolio manager at BlackRock Inc.??said Thursday that inflation pressures may actually be nearing a peak despite recent hotter-than-expected CPI and producer inflation reports that reignited fears of further Federal Reserve tightening.
Commerzbank in its "European Sunrise" note of Thursday highlighted: Markets: United States Treasuries better supported in the late New York session and Asia. --Fed: Kevin Warsh is confirmed as Federal Reserve chair in a 54-45 Senate vote. --Fed: Federal Reserve Bank of Boston President Susan Collins argues that rates should remain on hold for "some time."
U.S. Treasury Secretary Scott Bessent said on Thursday that the U.S. may see one or two "hot" inflation data readings before disinflation resumes, and new Federal Reserve Chair Kevin Warsh will keep an open mind about inflation as energy prices subside.
Chipmaker Cerebras is set to make its U.S. market debut later on Thursday, as it looks to ride a wave of investor euphoria for companies that are at the heart of the artificial intelligence boom. The firm's IPO is the largest this year and comes as AI-linked stocks push broader markets to record highs despite challenges to global growth stemming from the Middle East conflict.
Canada will release the consumer price index data for April on Tuesday, said Bank of Montreal. The bank expects Canada's CPI to hit 3% year over year in April, up from 2.4% in March. MT Newswires does not provide investment advice.
* White House weighs gas tax suspension as fuel prices surge, options dwindle. * Polls show most Americans feel financial strain, many doubt war is worth the cost. * Some Republicans back gas tax suspension, but party leaders are so far noncommittal. By Jarrett Renshaw, Nandita Bose and Jacob Bogage.
* Markets monitor Trump-Xi meeting, Iran war in focus. * U.S. Producer Price Index posts largest gain in four years. * HSBC raises 2026 silver price forecast to $75/oz. By Noel John.
* April new yuan loans shrink for first time in nine months. * Outstanding loan growth hits record low. * Q1 GDP growth picks up, but Iran war clouds outlook. * PBOC seen with limited room to ease as inflation pressures build. By Shi Bu and Kevin Yao.
* Trump to discuss Iran with Xi in U.S.-China summit. * U.S. Producer Price Index posts largest gain in four years. * U.S. Senate approves Kevin Warsh as Fed chair. By Pablo Sinha. Gold prices ticked up on Thursday, as investors focused on talks between U.S. President Donald Trump and his Chinese counterpart Xi Jinping, looking for signs of a resolution to the Iran war.
* GDP rises 0.3% in March against forecast of 0.2% drop. * Data caps another conspicuously strong Q1 outturn. * Economists question seasonality issues. * Stockpiling may also have brought forward demand. * Trade data shows surge in fuel imports. By Andy Bruce and Suban Abdulla.
Germany's 10-year bond yield was slightly lower on Thursday but remained close to its recent multi-year peak as higher energy prices solidified expectations for faster inflation and rate hikes from the European Central Bank. Expectations for a lasting peace deal between the U.S. and Iran have faded this week, keeping the Strait of Hormuz effectively closed to maritime traffic.
Japan's Nikkei share average hit a record high on Thursday before falling into negative territory as concerns about inflation and rising interest rates overwhelmed enthusiasm over technology stocks. The benchmark Nikkei 225 Index fell 1% to close at 62,654.05 after touching an unprecedented 63,799.32 earlier in the session.
* Dollar supported by rising U.S. Treasury yields and Fed rate hike expectations. * Trump-Xi summit focuses on trade progress, Taiwan tensions highlighted by Xi. * U.S. inflation data boosts rate hike bets, Fed Chair Warsh seen tightening policy. By Rae Wee and Amanda Cooper.
Indian Foreign Minister Subrahmanyam Jaishankar said on Thursday that "safe, unimpeded maritime flows" through international waters, including the Strait of Hormuz and the Red Sea, are vital for global economic well-being.
* Trump to discuss Iran with Xi in U.S.-China summit. * U.S. Producer Price Index posts largest gain in four years. * U.S. Senate approves Kevin Warsh as Fed chair. By Pablo Sinha. Gold prices were steady on Thursday, as investors focused on talks between U.S. President Donald Trump and Chinese President Xi Jinping, and looked for signs of progress in the Iran war.
Britain's economy expanded. Economists polled by Reuters had forecast a 0.2% month-on-month contraction in gross domestic product during March. For the first quarter as a whole, the economy grew by 0.6%, the Office for National Statistics said, matching expectations.
French President Emmanuel Macron faces a test next week when lawmakers decide whether to approve his former chief of staff to run the central bank, a nomination some critics say is part of a campaign to protect key institutions from a possible far-right election win in 2027.
Sitting out the oil shock may not be enough. Year-end crude oil futures are near their highest level of the Iran war so far, and with little sign of a durable peace deal. Annual consumer price inflation is heading back above 4% this month for the first time in three years, having failed to hit the Fed's 2% target rate since February 2021.
* Dollar set for weekly gain as jump in US inflation spurs rate hike bets. * China's Xi hails trade progress in Trump summit, sends Taiwan warning. * Yuan hits three-year high; yen finds support from BOJ board member comments. By Rae Wee.
Investors are bracing for U.S. Treasury yields to stay higher longer, skeptical that incoming Federal Reserve Chair Kevin Warsh will be able to tame inflation stoked by surging oil prices during a prolonged Middle East conflict. Long-dated yields, including those on benchmark 10-year notes, have spiked as investors demand greater compensation for inflation risk as higher energy prices bite.
* Trump to discuss Iran with Xi in U.S.-China summit. * U.S. Producer Price Index posts largest gain in four years. * U.S. Senate approves Kevin Warsh as Fed chair. By Pablo Sinha. Gold prices ticked up on Thursday, supported by a weaker dollar, as investors focused on talks between U.S. President Donald Trump and Chinese President Xi Jinping, and looked for signs of progress in the Iran war.
President Donald Trump?s nominee Kevin Warsh has been confirmed as the new Federal Reserve Chair, but bettors believe there's a reasonable chance he could still face public pushback from the POTUS. Prediction market Kalshi estimates a 56% likelihood that Trump will criticize Warsh before the end of the year.
The dollar rose for a fourth day on Thursday, underpinned by higher U.S. Treasury yields, as investors began to price in the chances of Federal Reserve rate hikes this year, while the global focus was on a two-day summit between U.S. President Donald Trump and China's Xi Jinping.
* Dollar set for weekly gain as jump in US inflation spurs rate hike bets. * Trump, Xi to meet on Thursday as US President seeks economic wins. * Yuan holds steady; yen finds support around 157-158 per dollar. By Rae Wee.
Kevin Warsh has been confirmed as the next chair of the Federal Reserve, marking a significant leadership shift at the U.S. central bank, confirmed the New York Times. Read Also: Trump Wanted Warsh For Rate Cuts, He May Get A Hike Instead Warsh, a former Federal Reserve governor who served from 2006 to 2011, succeeds Jerome Powell at a challenging moment for the economy.
NEW YORK, May 13, 2026 ?The CRE Finance Council issued the following statement from Lisa Pendergast, President and CEO, on the confirmation of Kevin Warsh as Chair of the Federal Reserve: "CREFC congratulates Kevin Warsh on his confirmation to lead the Federal Reserve. "Strong, transparent leadership at the Fed is essential to maintaining market stability and supporting economic growth.
US equity indexes closed mixed on Wednesday, as communication services and technology led sectors amid the fastest annual pace of growth in producer prices in four years, signaling the strength of the so-called AI trade.
Boston Federal Reserve President Susan Collins told the Wall Street Journal on Wednesday that she expects inflation pressures from the Iran war to eventually subside and that the current shock has masked evidence that underlying inflation is still headed down. Collins said on Wednesday the U.S. central bank may need to raise interest rates if inflation pressures do not abate.
The Senate voted 54-45 to confirm Kevin Warsh to lead the central bank. Warsh will take the reins from Jerome Powell, who said he will remain on the Federal Reserve Board.
* Canadian dollar falls 0.1% against the greenback. * Posts sixth straight daily decline. * BoC minutes show bank feels it could be patient on rates. * Canadian bond yields edge lower across the curve. By Fergal Smith.
The Senate confirmed Kevin Warsh as the next Federal Reserve chair in a 54-45 vote on Wednesday. Warsh is US President Donald Trump's pick to replace Jerome Powell, whose term as Fed chief expires on Friday. The Senate on Tuesday approved Warsh as a governor on the Fed board, bringing Stephen Miran's term to an end. Warsh served as a governor on the central bank's board from 2006 to 2011.
US equity indexes were mixed ahead of Wednesday's close as communication services and technology topped sector charts, while producer prices grew at the fastest annual pace in four years. The Dow Jones Industrial Average fell 0.1% to 49,707.1, trading off session lows.
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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