Bitcoin could drop further? after wiping out all of its price gains since the election of U.S. President Donald Trump as liquidity is expected to remain thin for the near future. Bitcoin's slump alongside other digital asset prices coincides with investor concerns about inflated tech valuations and the uncertain path of U.S. Federal Reserve rate cuts.
* Equities rally but S&P 500, Nasdaq fall for the week. * Greenback dips as risk assets catch a bid. * Cryptocurrencies, precious metals rebound after steep losses. * Oil settled higher as US-Iran talks get under way. By Sin?ad Carew and Sophie Kiderlin.
U.S. Senator Elizabeth Warren on Friday challenged President Donald Trump's denial of involvement in a Justice Department investigation of Federal Reserve Chair Jerome Powell that has heightened concerns about the Fed's independence and complicated the president's plan to install a rate-cut friendly Fed chair.
U.S. Senator Elizabeth Warren on Friday challenged President Donald Trump's denial of involvement in a Justice Department investigation of Federal Reserve Chair Jerome Powell that has heightened concerns about the Fed's independence and complicated the president's plan to install a rate-cut friendly Fed chair.
* TSX up 1.5% at 32,470.98, * Posts biggest gain since October 14. * Miners lead as gold rebounds. * Unemployment rate falls to 6.5% By Fergal Smith. Canada's main stock index rounded out a volatile week on a strong note on Friday as metal ?prices rallied and investors took advantage of recent cheapening of the market.
* Dollar retreats from two-week high as risk assets rebound. * Yen softens ahead of Japan's national election. * Euro and sterling recover after central bank decisions. By Laura Matthews. The dollar slipped from two-week highs on Friday, returning some safe-haven gains as risk assets rebounded from a deep rout driven by concerns over a surge in AI-related spending this year.
San Francisco Federal Reserve President Mary Daly on Friday said she thinks one or two more interest rate cuts may be needed to counteract weakness in the labor market, where workers are "walking a knife's edge" with higher prices eating into their wages and scarce opportunities for new jobs.
* Bessent says Trump has 'great respect' for Fed, central bank's independence. * Senate Banking Chair Tim Scott has said Fed chief Powell did not break law. * Senator Tillis has vowed to block nomination for top Fed job until Powell probe resolved. By Andrea Shalal.
Argentina's industrial output fell ?3.9% in ?December compared to ?the ?same ?month in 2024 in ?non-seasonally ?adjusted terms, data from ?national ?statistics agency ?INDEC showed on Friday. December industrial ?output in South America's second-largest economy decreased 0.1% ?compared ?to November in ?seasonally adjusted terms, according to the INDEC data.
U.S. Treasury Secretary Scott Bessent on Friday stressed that President Donald Trump was joking when he said over the weekend that he could sue Kevin Warsh, his nominee to lead the Federal Reserve, if he doesn't lower interest rates.
U.S. Treasury Secretary Scott Bessent on Friday stressed that President Donald Trump ?was joking when he said over ?the weekend that he ?could sue Kevin Warsh, his ?nominee ?to lead the Federal Reserve, if ?he doesn't lower ?interest rates.
* Canadian dollar gains 0.5% against the greenback. * For the week, the loonie is down 0.2% * Economy sheds 24,800 jobs in January. * Bond yields edge higher across the curve. By Fergal Smith. The Canadian dollar strengthened against ?its U.S. counterpart on Friday as stock markets rebounded and investors weighed mixed domestic employment ?data.
* Dollar slips from two-week high as risk assets rebound. * Yen weakens ahead of Japan's national election. * Euro and sterling recover after central bank decisions. By Laura Matthews and Amanda Cooper.
* Daly sees disconnect between cautious optimism among businesses, job worries for workers. * Fed policymakers are weighing the balance of inflation and employment risks. * Upcoming jobs report a key focus as central bankers weigh options. By Ann Saphir.
Federal Reserve Vice Chair Philip Jefferson said on Friday he was "cautiously optimistic" about the 2026 economic outlook, with growth expected to remain slightly above trend, the labor market stabilizing, and inflation resuming a decline to the U.S. central bank's 2% target.
San Francisco Federal Reserve Bank President Mary Daly said on Friday she thinks the U.S. labor market is in a "precarious" position, saying there could have been a case for the Fed to cut rates last week and that further interest-rate cuts may be needed.
* German yields take cues from elsewhere. * BofA no longer expects March rate cut. * French 10-year yield spread versus Bund at widest in two weeks. By Stefano Rebaudo. German government bond yields were little changed on Friday after earlier touching multi-week lows, a day after the European Central Bank kept interest rates unchanged.
* TSX up 1.4% * Miners lead as gold rebounds. * Consumer staples record biggest weekly gain ever. * Canada's unemployment rate falls to 6.5% By Utkarsh Hathi. Feb 6 - Canada's main stock index jumped on Friday in a broad-based rally led by ?mining shares as precious metals rebounded on safe-haven demand, setting up the index to finish a ?volatile week with healthy gains.
Canadian economic activity expanded at a slower pace in January as ?a measure of employment dipped, ?Ivey Purchasing Managers Index ?data showed on Friday. The ?seasonally adjusted ?index edged down to 50.9 ?last month from ?51.9 in December.
U.S. consumer sentiment increased to a six-month high in February, though anxiety over the labor market and the rising cost of living because of import-tariff-related inflation remained widespread.
The ECB's plan to make it easier for foreign central banks to secure funding in euros is the latest part of Europe's emerging strategy to win trade and political friends and hold its own against the United States and China.
Brazil's economic policy chief Guilherme Mello said on Friday that stabilizing the country's gross debt-to-gross domestic product ratio depends on monetary policy decisions, offering a glimpse of what he could support as a potential central banker.
Top brokerages expect the benchmark S&P 500 index to extend its rally in 2026, as investors pile into artificial intelligence plays and bet on ?reduced borrowing costs to sustain the momentum. The benchmark index will ?rise nearly 12% to 7,490 by end-2026, marking ?a fourth straight year of ?advances if ?2025 closes higher, according to a Reuters poll.
* Unemployment rate falls to 6.5% as fewer seek work. * Full-time jobs rise, part-time jobs decline significantly. * Manufacturing sector hit by U.S. tariffs, loses 27,500 jobs. * Canadian dollar slightly strengthens against U.S. dollar. * Labor market softening after previous months' gains, says Bank of Canada. By David Ljunggren.
China on Friday pledged to further tighten restrictions ?on virtual currencies ?and related illicit business ?activities, according ?to ?a notice released by China's ?central ?bank.
Brazil's economic policy chief Guilherme Mello said on Friday that ?stabilizing the country's gross debt-to-gross ?domestic product ratio depends ?on monetary policy decisions, ?among other ?factors.
Hang onto your hats, On the Money readers! Gold is soaring, software stocks are crashing amid AI concerns, inflation is heating up, Bitcoin is tumbling and consumer confidence is plummeting. These are just five reasons why investors are nervous now, but I'm sure there are many more.
* Software swoon worsens amid questions about AI's impact. * Market rotating away from tech to less-loved sectors. * Jobs report due on Wednesday, CPI on Friday in busy data week. By Lewis Krauskopf.
The pound rose on Friday, recovering some of the previous day's steep slide that followed a surprisingly tight vote from the Bank of England to leave rates unchanged and its signal that it could cut if inflation continues to ?cool. Sterling rose 0.4% to $1.3581 by mid-morning in London, partially recovering from Thursday's near-1% drop to 10-day lows.
* Survey points to inflation at ECB'S 2% target. * Markets see no change in interest rates this year. * Some policymakers still fear too-low inflation. * Strong euro, lower wage growth, Chinese imports dampen price pressures.
Central European currencies
were holding steady on Friday despite tremors in global markets
caused by fears over AI, as investors digested the Czech central
bank's decision to maintain a ...
* Investors unwind riskier positions on AI spending surge, dollar gets haven bid. * Yen weakens ahead of Japan's national election. * Euro and sterling recover after central bank decisions. By Amanda Cooper.
Euro zone inflation is likely to remain broadly on the same path as seen three months ago, dipping below 2% this year, then returning to target ?in 2027, the European Central Bank's Survey of Professional Forecasters showed on Friday.
* Japan holds February 8 snap election. * AI splinters into winners and losers. * US CPI, non-farm payrolls released. Japan's snap election, a heavy dose of key U.S. data, earnings season, plus a slide in tech shares suggest there won't be much down time for traders in the coming week.
Euro zone government bond yields were set to end the week slightly lower after the European Central Bank kept rates on hold, bolstering expectations of steady policy through 2026. The 2-year yields were down ?1.5 basis points at ?2.05% on ?Friday, and on track for a 1.5 bps weekly drop.
* Exports to U.S. and China drive unexpected rise. * Industrial production falls 1.9%, dashing recovery hopes. * Trade surplus widens to 17.1 billion euros in December. By Maria Martinez.
* ECB, BoE hold rates. * RBA delivers first rate hike in two years. * Markets anticipate more Fed easing. By Stefano Rebaudo. Central banks in big economies are parting ways, with Australia this week raising interest rates for the first time in two years, while others are taking a more cautious approach even if they are likely done with easing.
German industrial production fell ?more than ?expected in December ?by ?1.9% ?compared with ?the ?previous month, the federal statistics ?office ?said ?on Friday. Analysts polled by ?Reuters had predicted a 0.3% ?fall. The ?office offers more ?detailed data on its website.
Indonesia's stocks and currency skidded on Friday after Moody's lowered the country's credit rating outlook, the latest jolt for Southeast Asia's largest economy, wiping about $120 billion off its equity market in a turbulent start to the year.
Currency intervention using Japan's foreign exchange reserves can deliver an immediate jolt to markets, but its impact would be more durable if accompanied by steady rate hikes, a former top currency diplomat ?told Reuters.
Currency intervention using Japan's foreign exchange reserves can deliver an immediate jolt to markets, but its impact would be more durable if accompanied by steady rate hikes, a ?former top currency diplomat told Reuters.
Japanese government bond yields fell on Friday, led by the longest-dated debt, with investors optimistic that a likely landslide win for the coalition government in Sunday's snap election will temper any expansion of fiscal ?stimulus. Yields were also under pressure from a sharp decline in U.S. Treasury yields overnight ?as economic data pointed to a weaker-than-expected jobs market.
* Bank of England leaves rates unchanged, pound drops. * Dollar strengthens amid risk aversion and central bank decisions. * Bitcoin tumbles, hits lowest since October 2024. By Laura Matthews. The U.S. dollar hit a two-week high on Thursday as fresh volatility gripped stocks and the pound tumbled after the Bank of England voted by a razor-thin margin to leave UK rates unchanged.
Restructuring the Canadian economy to cope with U.S. tariffs, slower population growth and the rise of artificial intelligence will take years, and could be painful, Bank of Canada Governor Tiff Macklem said on Thursday. Macklem ?urged policymakers and businesses to do all they could to adjust to the new challenges, saying Canada could ?not afford to fail.
* Canadian dollar falls 0.1% against the greenback. * Trades in a range of 1.3653 to 1.3699. * Price of oil settles 2.8% lower. * Canadian yields ease across the curve. By Fergal Smith.
* Traders anticipate two 25 basis point rate cuts this year. * Kevin Warsh expected to adopt dovish stance as new Fed Chair. * Two-year yields hit four-week low aftrer weak jobs data. By Karen Brettell.
* Rate hold is first pause since mid-2024. * Central bank now sees inflation hitting target in Q2 2027. * Analysts expect Banxico to hold rate for much of 2026. By Brendan O'Boyle. The Bank of Mexico's governing board unanimously held its benchmark interest rate at 7.00% on Thursday, in line with market expectations ?after recent upticks in both inflation and economic growth.
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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