* US jobless claims rise in latest week. * US productivity slows in Q4. * US rate futures price in 46 bps of easing in 2025. By Gertrude Chavez-Dreyfuss.
* Sterling slips after Bank of England rate cut. * Yen pares gains after hitting 8-week high versus dollar overnight. * Dollar slightly higher, but still near recent lows. By Hannah Lang, Greta Rosen Fondahn.
Citing a trade deficit, Jamieson Greer, the nominee for U.S. Trade Representative, told U.S. senators that he is looking at the potential of universal tariffs. "A universal tariffs is something that should be studied and considered to see if it can reverse the direction of that deficit," Greer said at his Senate Finance committee confirmation hearing.
* Gold hit a record high of $2,882.16 on Wednesday. * Markets await US non-farm payrolls report due on Friday. * Gold's RSI indicates overbought conditions. * BoE's gold stock down 2%, says Deputy Governor Ramsden. By Anmol Choubey and Swati Verma.
* European shares hit record high. * Bank of England cuts UK interest rates, pound weakens. * US shares marginally higher. * Slew of corporate earnings, Amazon (AMZN) to come. * Yen strengthens on bets of more BOJ hikes. By Marc Jones and Alun John.
Canadian economic activity contracted for the first time in five months in January as employment grew at a slower pace and prices heated up, Ivey Purchasing Managers Index data showed on Thursday. The seasonally adjusted index fell to 47.1 from 54.7 in December, moving below the 50 threshold for the first time since August.
Canadian miner Barrick Gold's (GOLD) overall proven and probable gold reserves jumped 23% to 17.4 million ounces at the end of 2024, lifted by its Reko Diq copper-gold project, the company said on Thursday. The company added 13 million ounces of gold to its probable reserves on an attributable basis following the completion of its feasibility study at Reko Diq.
Canadian miner Barrick Gold (GOLD) saw its proven and probable gold mineral reserves rise by 23% to 17.4 million ounces before 2024 depletion, largely due to its Balochistan, Pakistan-based Reko Diq copper-gold project, the company said in a statement on Thursday.
The number of Americans filing new applications for unemployment benefits increased moderately last week, consistent with steadily easing labor market conditions, though opportunities for those out of work are becoming scarce amid tepid hiring.
The number of Americans filing new applications for unemployment benefits increased moderately last week, consistent with gradually easing labor market conditions. Initial claims for state unemployment benefits rose 11,000 to a seasonally adjusted 219,000 for the week ended February 1, the Labor Department said on Thursday.
* Sterling slips after Bank of England rate cut. * Yen pares gains after touching 8-week high vs dollar overnight. * Dollar slightly higher, but still near recent lows. By Kevin Buckland and Greta Rosen Fondahn.
* Bank of England cuts interest rates to 4.5% from 4.75% * MPC's Dhingra and Mann vote for bigger cut to 4.25% * BoE sees inflation peaking at 3.7% this year. * Growth outlook for 2025 halved to 0.75% * Markets see slightly greater chance of more 2025 rate cuts. By David Milliken and Andy Bruce.
* European shares hit record high. * Bank of England cut UK interest rates. * Slew of corporate earnings on tap, including Google and Microsoft (MSFT). * Treasury yields ease up from 1-month lows. * Yen strengthens on bets of more BOJ hikes. By Marc Jones.
The Bank of England cut interest rates by a quarter-point and some policymakers wanted a bigger move to offset a slowdown, but the BoE said it would be careful about further moves in the face of an expected inflation spike and global economic uncertainty.
The pound was set for its biggest one-day fall since early January on Thursday after the Bank of England cut interest rates as expected, with two officials calling for an even larger rate cut against a backdrop of weaker growth.
The European Central Bank should stand ready to ease borrowing costs to a level lower than neutral to boost growth, ECB policy maker Olli Rehn told the Financial Times in an interview published on Thursday.
Sterling fell against the dollar on Thursday, on track for its biggest daily drop in about a month, as investors awaited the outcome of the Bank of England's meeting, at which the central bank is widely expected to cut interest rates. Markets are pricing in a 94% chance the BoE will cut rates by 25 basis points to 4.5% on Thursday, after which investors do not see a second easing until June.
A look at the day ahead in U.S. and global markets from Mike Dolan. With tariff tensions easing a touch for now and price pressures coming off the boil, U.S. Treasury yields have plunged this week - defusing a tense January for bond markets and helping stocks find a foothold in the thick of a noisy earnings season.
A look at the day ahead in U.S. and global markets from Mike Dolan With tariff tensions easing a touch for now and price pressures coming off the boil, U.S. Treasury yields have plunged this week - defusing a tense January for bond markets and helping stocks find a foothold in the thick of a noisy earnings season.
Euro area government bond yields edged higher on Thursday as investors awaited the Bank of England's policy decision while weighing concerns about U.S. tariffs and their impact on European Central Bank monetary policy. The BoE is widely expected to cut rates by 25 basis points and provide some guidance about the easing cycle outlook.
* European shares hit record high. * Bank of England expected to cut interest rates. * Slew of corporate earnings on tap. * Treasury yields ease up from 1-month lows. * Yen strengthens on bets of more BOJ hikes. By Marc Jones.
* Israeli army prepares for departure of Gaza residents. * China challenges U.S. tariffs at WTO. * Czech Republic interest rate decision expected. * MSCI EM FX down 0.2%, stocks up 0.3% By Purvi Agarwal.
* Sterling slips ahead of expected Bank of England rate cut. * Yen steady after touching 8-week high vs dollar overnight. * Dollar slightly higher, but still near recent lows. By Kevin Buckland and Greta Rosen Fondahn.
The Federal Reserve announced on Wednesday it would be testing big banks against heightened stress in commercial and residential real estate markets as part of the U.S. central bank's annual stress tests.
Activity among British construction firms shrank sharply in January, marking the first contraction in almost a year, according to a survey published on Thursday that also showed cost pressures escalating. The S&P Global/CIPS UK Construction Purchasing Managers' Index fell to 48.1 last month from December's 53.3, coming in below all forecasts in a Reuters poll of economists.
Euro area government bond yields edged higher on Thursday, as investors awaited the Bank of England's policy decision while weighing concerns about U.S. tariffs and their impact on European Central Bank monetary policy. The BoE is widely expected to cut rates by 25 basis points and provide some guidance about the easing cycle.
* Global shares see relief rally. * Slew of corporate earnings on tap. * Treasury yields near lowest in over a month. * Yen strengthens on bets of more BOJ hikes. By Rae Wee and Stephen Culp.
Sterling dipped against the dollar on Thursday, as investors awaited the outcome of the Bank of England's meeting later on, at which the central bank is widely expected to cut rates. Markets price in a 94% chance the BoE will cut rates by 25 basis points to 4.5% on Thursday, after which investors do not see a second easing until June.
Japanese government bond yields fell on Thursday after an auction for 30-year bonds generated the strongest demand in years, while hawkish comments central bank board member Naoki Tamura bolstered expectations of a hike in interest rates.
U.S. shares held steady after European equities hit a record high, and gold prices were near an all-time peak as investor focus flipped back to where global interest rates and tech stocks are heading after days of trade war angst.
- Foreign investors pulled heavily out of Asian stocks in January, deterred by higher U.S. Treasury yields and rising concerns that regional exports could suffer under additional tariffs from President Donald Trump's administration.
* Global shares see relief rally. * Slew of corporate earnings on tap. * Treasury yields near lowest in over a month. * Yen strengthens on bets of more BOJ hikes. By Rae Wee and Stephen Culp.
Foreign investors pulled heavily out of Asian stocks in January, deterred by higher U.S. Treasury yields and rising concerns that regional exports could suffer under additional tariffs from President Donald Trump's administration.
The yen climbed to an eight-week top versus the U.S. dollar on Thursday after a Bank of Japan policy board member advocated continued interest-rate hikes. The dollar hovered near the lowest level since the start of last week against a basket of peers that includes the yen, with investors beginning to entertain prospects that a global trade war could be averted.
European Central Bank interest rates have room to fall further as inflation moderates, ECB board member Piero Cipollone said, warning that the U.S. administration's trade war with China could have a detrimental impact on the 20-member euro zone.
The European Central Bank hopes U.S. President Donald Trump's plan to support cryptocurrencies pegged to the U.S. dollar will speed up legislative backing for the digital euro, ECB board member Piero Cipollone told Reuters.
A look at the day ahead in European and global markets from Rae Wee. Investors in Europe will wake up to an action-packed Thursday spanning a rate decision from the Bank of England and a flurry of corporate earnings, alongside any news from U.S. President Donald Trump that could reignite market volatility.
A look at the day ahead in European and global markets from Rae Wee. Investors in Europe will wake up to an action-packed Thursday spanning a rate decision from the Bank of England and a flurry of corporate earnings, alongside any news from U.S. President Donald Trump that could reignite market volatility.
The Bank of Japan must raise interest rates to at least 1% by the second half of the fiscal year beginning in April, hawkish board member Naoki Tamura said on Thursday, remarks that pushed up the yen as they reinforced bets of a near-term rate hike.
* Inflationary risks building up, board member Tamura says. * Tamura sees Japan's neutral rate to be at least 1% * BOJ must raise rates to neutral in 2nd half of fiscal 2025. * Comments keep alive near-term rate hike view, push up yen. By Leika Kihara and Takahiko Wada.
* Global shares see relief rally. * China sets stronger-than-expected yuan midpoint fixing. * Treasury yields near lowest in over a month. * Yen strengthens on bets of more BOJ hikes. By Stephen Culp and Rae Wee.
U.S. shares held steady after European equities hit a record high, and gold prices were near an all-time peak as investor focus flipped back to where global interest rates and tech stocks are heading after days of trade war angst.
The yen touched an eight-week high versus the dollar on Thursday after a Bank of Japan policy board member advocated continued interest rate hikes, while sterling slid as the Bank of England cut rates. The pound fell 0.8% to $1.24065 after the Bank of England cut interest rates as expected, but forecast higher inflation and weaker growth, with two officials calling for an even larger rate cut.
The U.S. dollar slumped to an eight-week trough to the yen and lingered near a one-month low versus sterling on Thursday, as investor nerves about an inflation-stoking global trade war abated. Japan's currency was also supported by rising expectations for further Bank of Japan interest-rate hikes with a central bank official advocating continued rate hikes, a day after strong wage data.
- U.S. Federal Reserve Vice Chair Philip Jefferson on Wednesday said he is content to keep the central bank's policy rate in its current position until policymakers get a better sense of the net effects of the Trump administration's policies on tariffs, immigration, deregulation and taxes.
- U.S. Federal Reserve Vice Chair Philip Jefferson on Wednesday said he is content to keep the central bank's policy rate in its current position until policymakers get a better sense of the net effects of the Trump administration's policies on tariffs, immigration, deregulation and taxes.
The Bank of England looks set to cut interest rates on Thursday for only the third time since just after the start of the COVID-19 pandemic in 2020, as it juggles the need to help the sluggish economy with still-strong inflation pressures.
* BoE expected to cut Bank Rate to 4.5% from 4.75% * New forecasts may show weaker growth, higher inflation. * British central bank has been more cautious than others. * Markets expect at least 2 further rate cuts in 2025. * Focus on signals from BoE about outlook for monetary policy. By William Schomberg.
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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