* Euro zone inflation expectations hit highest since 2015. * U.S. 10-year Treasury hits highest since Jun. 17. * MSCI All Country World dips for third day. By Ritvik Carvalho. Global shares fell for a third successive day on Tuesday, while bond yields and measures of inflation expectations on both sides of the Atlantic soared on anxiety over when central banks might raise interest rates.
Citi on Tuesday trimmed its China growth forecast for next year to 4.9% from 5.5%, citing expected spillover from the woes of embattled property giant Evergrande, and predicted policy makers would deliver more interest rate reductions. "The balancing between moral hazard risks and contagion risks points towards a managed restructuring," Citi's Xiangrong Yu wrote in a note to clients.
Nasdaq futures fell more than 1% on Tuesday as technology heavyweights came under pressure from a surge in bond yields, which have been lifted by expectations of higher interest rates following recent comments from the Federal Reserve. The two-year U.S. Treasury yield surged to 18-month highs, weighing on shares of high-growth companies whose values rest heavily on future earnings.
Hungary's forint hit
a two-month-low against the euro on Tuesday, pressured by rising
U.S. Treasury yields, high inflation and a row with the European
Union, which has led to a freeze in ...
U.S. Treasuries extended their selloff into a fourth day on Tuesday, with 10-year yields rising to new end-of-June highs while the TIPS market also started pricing in higher future inflation. The prospect of rising cash rates and the risk of inflation proving less transitory than expected took two-year yields to 18-month highs.
* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv. By Joice Alves. Sterling fell versus a strengthening dollar on Tuesday after U.S. treasury yields jumped to the highest in almost three months following hawkish U.S. Federal Reserve remarks.
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn. * Graphic: World FX rates http://tmsnrt.rs/2egbfVh. By Ritvik Carvalho. Global shares fell for a third successive day on Wednesday, while bond yields on both sides of the Atlantic soared on anxiety over when central banks might raise interest rates.
* China, HK shares rise as big tech, property stocks rally. * MSCI EMFX index drop 0.2%, shares down 0.1% * Russian rouble bucks gloom, up 0.5% By Susan Mathew. More evidence of slowing growth in China and rising U.S. Treasury yields further dented fragile risk sentiment on Tuesday although a rally in property stocks kept heavywieght Chinese shares buoyed.
Japan's 10-year government bond yield hit its highest in nearly four months, tracking U.S. Treasury yields higher, while weak demand at a 40-year debt auction weighed on bond prices. The 10-year JGB yield rose two basis points to 0.070%, its highest since June 9. Benchmark 10-year JGB futures fell 0.25 point to 151.37, with a trading volume of 24,885 lots.
French consumer confidence improved more than expected in September as households' concerns about unemployment eased, a monthly survey showed on Tuesday. The INSEE official statistics agency said its consumer confidence index rose to 102 from 99 in August, hitting its highest level since June.
French consumer confidence improved more than expected in September as households' concerns about unemployment eased, a monthly survey showed on Tuesday. The INSEE official statistics agency said its consumer confidence index rose to 102 from 99 in August, hitting its highest level since June.
Euro zone bond yields rose to their highest since early July on Tuesday, tracking moves in U.S. Treasuries, as markets continued to fret about when central banks might tighten monetary policy.
European stocks fell on Tuesday, as a surge in government bond yields pressured high-growth technology shares, with fresh signs of a slowdown in China's economy weighing on investor sentiment. The pan-European STOXX 600 index was down 0.4%, falling for a third session as a jump in U.S. Treasury yields signalled that investors were bracing for higher cash rates and the risk of persistent inflation.
A look at the day ahead from Sujata Rao. It's only Tuesday but ten-year Treasury yields are already up 8 basis points this week, leading a global move up in government borrowing costs after last week's hawkish central bank chorus. Even more interesting is the move in inflation breakevens, which reflect bond market expectations of future price growth.
A look at the day ahead from Sujata Rao It's only Tuesday but ten-year Treasury yields are already up 8 basis points this week, leading a global move up in government borrowing costs after last week's hawkish central bank chorus. Even more interesting is the move in inflation breakevens, which reflect bond market expectations of future price growth.
Central bank digital currencies can slash the time needed for cross border payments to seconds from days and cut costs, the Bank of International Settlements said, citing a pilot scheme to test the digital forms of fiat currencies.
Hong Kong's central bank has asked lenders to report their exposure to debt-laden China Evergrande
Group (EGRNF) on concerns over potential systemic risks to the region's financial system, Bloomberg reported on Tuesday, citing people familiar with the matter.
The yen slumped to an almost three-month low to the dollar and a two-week trough versus the euro on Tuesday, as rising bond yields in the U.S. and Europe lured Japanese investors. The yen lost about 0.2% to 111.21 per dollar, a level not seen since July 2. It weakened about the same amount to 130.07 to the single currency after earlier touching 130.115 for the first time since Sept. 14.
The mood among German consumers brightened unexpectedly heading into October to reach its highest level in a year and a half, a survey showed on Tuesday, in a sign that households continue to support the recovery in Europe's largest economy.
A recent pilot scheme showed that using central bank digital currencies underpinned by blockchain can slash the time needed for cross border transactions from days to seconds and also cut costs, the Bank of International Settlements said. The pilot programme explored using CBDCs to make cross border payments, the BIS said in a report published on Tuesday.
* Holdings in SPDR Gold Trust fell 0.3% on Monday. * U.S. 10-year Treasury hits over three-month peak. * Dollar hits a peak since Aug. 20. By Eileen Soreng. Gold prices fell to a 1-1/2-month low on Tuesday, as firmer dollar and soaring U.S. Treasury yields dented the metal's safe-haven appeal, amid more signals emerging that the U.S. Federal Reserve could be shifting towards tighter policy.
Two-year Treasury yields surged on Tuesday to 18-month highs as investors priced in the prospect of rising cash rates and the risk of persistent inflation, forcing the U.S. government to pay more to sell its debt. The government had to double the coupon on the new note sold on Monday to 0.25% to reflect market pricing of higher overnight rates for the next two years.
Global shares fell for a third successive day on Tuesday, while bond yields and measures of inflation expectations on both sides of the Atlantic soared on anxiety over when central banks might raise interest rates. MSCI's All Country World Index, which tracks shares across 49 countries, was down 0.36% on the day after the start of trading in Europe.
The yen traded near an almost three-month low to the dollar and reached a two-week trough versus the euro on Tuesday, as rising bond yields in the U.S. and Europe lured Japanese investors.
Some Bank of Japan policymakers warned of the risk of a delay in the country's economic recovery as state of emergency curbs to combat the coronavirus pandemic weighed on consumption, minutes of their July meeting showed on Tuesday.
- The Federal Reserve has said it will start to reduce its bond purchases as soon as November if the economy continues on its current track. Some officials will watch the September jobs report, due Oct. 8, for a final bit of evidence that the labor market has achieved "substantial further progress" in its recovery.
- The Federal Reserve has said it will start to reduce its bond purchases as soon as November if the economy continues on its current track. Some officials will watch the September jobs report, due Oct. 8, for a final bit of evidence that the labor market has achieved "substantial further progress" in its recovery.
New York Federal Reserve Bank President John Williams on Monday warned of the potential negative market reaction if the United States failed to solve its debt-ceiling issue, but said market participants right now seemed to think the problem would be resolved. The U.S. Congress faces a pair of approaching deadlines to fund the government and address the nation's $28.4 trillion debt ceiling.
U.S. consumer and public interest groups on Monday kept up the pressure on Federal Reserve Chair Jerome Powell to impose stricter ethics rules on Fed officials, after two Fed bank presidents resigned because of controversial investing activity last year.
U.S. consumer and public interest groups on Monday kept up the pressure on Federal Reserve Chair Jerome Powell to impose stricter ethics rules on Fed officials, after two Fed bank presidents resigned because of controversial investing activity last year.
China's central bank vowed to protect consumers exposed to the housing market on Monday and injected more cash into the banking system as the Shenzhen government began investigating the wealth management unit of ailing developer Evergrande, the clearest sign yet the authorities could move to contain contagion risks.
Goldman Sachs (GS) has cut China's economic growth forecast for 2021 to 7.8%, from 8.2%, as energy shortages and deep industrial output cuts add "significant downside pressures", it said in a note on Tuesday.
New York Federal Reserve Bank President John Williams on Monday warned of the potential negative market reaction if the United States failed to solve its debt-ceiling issue, but said market participants right now seemed to think the problem would be resolved. The U.S. Congress faces a pair of approaching deadlines to fund the government and address the nation's $28.4 trillion debt ceiling.
U.S. consumer and public interest groups on Monday kept up the pressure on Federal Reserve Chair Jerome Powell to impose stricter ethics rules on Fed officials, after two Fed bank presidents resigned because of controversial investing activity last year.
New York Federal Reserve Bank President John Williams on Monday warned of the potential negative market reaction if the United States failed to solve its debt-ceiling issue https://www.reuters.com/world/us/what-are-congress-options-funding-govt-raising-debt-limit-2021-09-26, but said market participants right now seemed to think the problem would be resolved.
- Atlanta Federal Reserve Bank President Raphael Bostic on Monday reiterated the U.S. central bank's commitment to making sure every American who wants a job can have one.
Atlanta Federal Reserve Bank President Raphael Bostic on Monday reiterated the U.S. central bank's commitment to making sure every American who wants a job can have one.
Chile's central bank will decide in early 2022 on a strategy for the potential roll-out of its own digital currency, the bank's president said on Monday, as policymakers worldwide seek to keep pace with fast-spreading cryptocurrencies. Regulators globally are cracking down on digital coins, alarmed at a rapidly expanding market that exceeded a record $2 trillion in April.
Federal Home Loan Mortgage Corp : * FREDDIE MAC (FMCC) - TOTAL MORTGAGE PORTFOLIO INCREASED AT AN ANNUALIZED RATE OF 23.7% IN AUGUST. * FREDDIE MAC (FMCC) - FREDDIE MAC MORTGAGE-RELATED SECURITIES AND OTHER MORTGAGE-RELATED GUARANTEES INCREASED AT AN ANNUALIZED RATE OF 23.0% IN AUGUST Source text for Eikon: Further company coverage:
The higher prices and hiring difficulties seen as the U.S. economy reopens from the pandemic could prove "more enduring than anticipated," and the Federal Reserve would move against unchecked inflation if needed, Fed Chair Jerome Powell said in remarks prepared for delivery to the Senate Banking Committee on Tuesday. "The process of reopening the economy is unprecedented, as was the shutdown.
* Stocks sensitive to economy outperform the market. * U.S. core capital goods orders, shipments rise in Aug. * Indexes: Dow rises 0.21%, S&P down 0.28%, Nasdaq falls 0.52% By Stephen Culp. NEW YORK, Sept 27 - The S&P 500 and Nasdaq indexes ended lower on Monday with investors pivoting to value as tech shares, hurt by rising Treasury yields, weighed on equities in the quarter's final week.
- Dallas Federal Reserve Bank President Robert Kaplan on Monday said he will leave his job on Oct. 8 to eliminate any "distraction" to the central bank related to his personal investment activities.
Dallas Federal Reserve Bank President Robert Kaplan on Monday said he will leave his job on Oct. 8 to eliminate any "distraction" to the central bank related to his personal investment activities.
By Stephen Culp. Wall Street ended mixed on Monday as investors began the last week of September and the quarter with a pivot to value as tech shares, hurt by rising Treasury yields, weighed on the Nasdaq Composite index. The S&P 500 index joined the Nasdaq in negative territory, but the blue-chip Dow Jones Industrial Average ended higher.
The U.S. dollar advanced for a second straight session on Monday,
bolstered by the rise in Treasury yields ahead of a slew of Federal Reserve speakers this week who could
affirm expectations of the ...
* Oil climbs on tight supply, strong demand. * European stocks end lower. * U.S. stock indices mixed. * U.S. 10-year Treasury yield hits 1.5% * Bonds pressured by hawkish central banks, inflation. By Matt Scuffham.
* Stocks sensitive to economy outperform the market. * U.S. core capital goods orders, shipments rise in Aug. * Indexes: Dow rises 0.41%, S&P down 0.10%, Nasdaq falls 0.45% By Stephen Culp. NEW YORK, Sept 27 - Wall Street began the last week of September and the quarter with investors backing value over growth on Monday as tech shares, hurt by rising Treasury yields, weighed on the broader market.
Federal Reserve Governor Lael Brainard said Monday the U.S. had fallen behind its peer central banks in building the risks of climate change into the supervision of banks, highlighting a potentially core priority should she be promoted to vice chair of supervision at the Fed or even to the chair's spot.
It may be possible for the Federal Reserve to finish winding down its asset purchases by the middle of next year but the exact timing has not been decided yet, New York Fed Bank President John Williams said on Monday.
- The Federal Reserve's "highest priority" is to make sure millions of Americans now out of a job can get back to work, Minneapolis Federal Reserve Bank President Neel Kashkari said in a speech taped Friday and released Monday.
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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