Asian stocks slipped to three-week lows on Tuesday while bonds and the dollar steadied as investors tempered expectations for cuts to U.S. interest rates and waited on U.S. jobs data. An interest rate decision is due in Australia in the meantime, with traders all but certain the central bank will keep rates steady, leaving the focus on the outlook and tone.
Asian stocks slipped to three-week lows on Tuesday while bonds and the dollar steadied as investors tempered expectations for cuts to U.S. interest rates and waited on U.S. jobs data. An interest rate decision is due in Australia in the meantime, with traders all but certain the central bank will keep rates steady, leaving the focus on the outlook and tone.
After decades of deflation, Japan's economy looks poised to finally turn a corner. Lenders in the world's third-largest economy are now giving crash courses to younger staff to help clients navigate higher interest rates as many of these employees have no expertise in dealing with the vagaries of a traditional inflation environment.
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China's services activity expanded at a quicker pace in November, a private-sector survey showed on Tuesday, as the upturn in new businesses were the best seen for three months amid reports of firmer market conditions.
China's services activity expanded at a quicker pace in November, a private-sector survey showed on Tuesday, as the upturn in new businesses were the best seen for three months amid reports of firmer market conditions.
Australia's current account slid into deficit in the September quarter as prices for some commodity exports fell and locals spent more money abroad, leaving trade as a drag on the economy overall. Other data from the Australian Bureau of Statistics on Tuesday showed government spending was surprisingly strong in the quarter, helping offset the drag.
Japan's service activity expanded at the slowest pace in a year in November, weighed by an accelerating decline in new exports and softer demand, however, the outlook for the sector remained upbeat, a business survey showed on Tuesday. The service sector has been a bright spot for the world's third-largest economy, helping offset the drag to growth from struggling manufacturing.
The British public's expectations for inflation over the medium to long term, which are closely watched by the Bank of England, rose in October, according to a survey published on Monday. Inflation expectations in five to 10 years' time picked up to 3.5% from 3.3% in September, the survey by U.S. bank Citi and polling firm YouGov (YUGVF) showed.
* Major US averages fall. * Dollar rises. * Gold retreats after hitting record high. * Oil settles down more than 1% By Chuck Mikolajczak. A gauge of global stocks was poised to snap a four-session winning streak on Monday while Treasury yields rose as investors awaited U.S. labor market data to indicate the likely route of the Federal Reserve's rate policy.
* Alaska Air (ALK) drops on Hawaiian Holdings (HA) buyout deal. * Crypto stocks surge on bitcoin rally. By Noel Randewich and Shristi Achar A. Dec 4 - U.S. stocks ended lower on Monday, interrupting last week's rally, as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year.
The dollar ticked higher on Monday, regaining some ground after falling for three straight weeks on bets that the U.S. Federal Reserve will soon be cutting interest rates, while bitcoin breached $42,000 for the first time since early 2022.
Underlying inflation pressures eased in October compared to the prior month, according to a report released on Monday by the Federal Reserve Bank of New York.
Underlying inflation pressures eased in October compared to the prior month, according to a report released on Monday by the Federal Reserve Bank of New York.
Benchmark 10-year yields rose from
three-month lows on Monday ahead of key employment data due this
week, though traders continued to price in the likelihood of the
U.S. Federal Reserve cutting ...
* BLACKROCK CIO OF GLOBAL FIXED INCOME RICK RIEDER SAYS I THINK FED IS DONE HIKING RATES- CNBC INTERVIEW. * BLACKROCK CIO OF GLOBAL FIXED INCOME RICK RIEDER SAYS WE HAVE TO ADDRESS DEBT IN THIS COUNTRY- CNBC Further company coverage:
Latin America and the Caribbean need to rapidly boost spending to up to 4.9% of gross domestic product annually by 2030 to meet their climate targets, a United Nations agency said in a report on Monday.
* Major US averages fall. * Dollar rises. * Gold retreats after hitting record high. * Oil down more than 1% By Chuck Mikolajczak. A gauge of global stocks fell for the first time in five sessions on Monday while Treasury yields rose as investors awaited U.S. labor market data to gauge the likely route of the Federal Reserve's rate policy.
Brazil's central bank chief, Roberto Campos Neto, said on Monday that the bank successfully overcame some challenges to its autonomy posed by the new administration of President Luiz Inacio Lula da Silva, despite what he termed some "noises" in the past year.
Investors returned to a popular exchange-traded fund tracking gold in November, as prices of the yellow metal scaled a record high on growing hopes that the Federal Reserve will ease monetary policy in 2024.
Mexico's headline inflation likely accelerated in November, while the core index would have continued easing, a Reuters poll showed on Monday, reinforcing expectations that the central bank will carry out interest rate cuts starting next year.
* Major US averages fall. * Dollar rises. * Gold falls after rising above $2,100. * Oil edges down. By Chuck Mikolajczak. A gauge of global stocks fell for the first time in five sessions on Monday while Treasury yields rose as investors looked to upcoming U.S. labor market data for insight on the path of the Federal Reserve's rate policy.
The S&P 500 will likely struggle to rise much above current levels into the middle of 2024, as investors rotate away from growth stocks and the Federal Reserve holds off from interest rate cuts in the first half of next year, Stifel equity strategists said on Monday. Stifel Chief Equity Strategist Barry Bannister and his team sees the S&P 500 "topping" around 4,650 into mid-2024.
* Dollar, U.S. 10-year Treasury yields higher. * Traders trim bets for first rate cut in March. * Gold eyes biggest daily drop in 10 months. By Anushree Ashish Mukherjee. Gold fell more than 2% after hitting an all-time high on Monday, but zero-yield bullion's retreat halted above $2,000 an ounce after traders trimmed bets for the first rate cut by the U.S. Federal Reserve in early 2024.
South Africa's rand fell on Monday as the dollar rose strongly on global markets at the start of a busy week for local economic data with gross domestic product and current account figures due. At 1530 GMT, the rand traded at 18.8075 against the dollar, about 1% weaker than its previous close. The dollar last traded around 0.6% stronger against a basket of global currencies.
By Samuel Indyk and Stefano Rebaudo. Euro zone government bond yields hit fresh multi-month lows on Monday as market bets on interest rate cuts ramped up following economic data and comments from European and U.S. policymakers last week.
The dollar ticked higher on Monday, regaining some ground after falling for three straight weeks on bets that the U.S. Federal Reserve will soon be cutting interest rates, while bitcoin breached $42,000 for the first time since early 2022.
Benchmark 10-year yields rose from
three-month lows on Monday ahead of key employment data due this
week, though traders continued to price in the likelihood of the
U.S. Federal Reserve cutting ...
* FITCH RATINGS: EMERGING EUROPE FINANCE AND LEASING COMPANIES' OUTLOOK NEUTRAL IN 2024. * FITCH ON FLC IN EMERGING EUROPE:IN 2024 TURKISH FLCS TO BENEFIT FROM TURKIYE'S MORE PREDICTABLE ECONOMIC POLICY,SLOWING BUT STILL VERY HIGH INFLATION. * FITCH ON FLCS IN EMERGING EUROPE - EXPECT LESSORS IN KAZAKHSTAN TO BENEFIT FROM GRADUAL DECLINE OF POLICY RATE AND INFLATION IN 2024 Source text for Eikon:
Wall Street's main indexes opened lower on Monday as investors turned wary ahead of a slew of economic data this week that is likely to test the narrative about a cut in interest rates by the Federal Reserve early next year.
U.S. home buyers are becoming more willing to purchase properties even as interest rates stay high, according to a study by Bank of America (BAC) published on Monday. About 62% of respondents said they would wait for borrowing costs to fall before buying a house, according to 1,000 people polled in September.
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Sluggish global growth, a higher risk of borrowers defaulting on loans and pressure on profitability mean that banks face a negative outlook in 2024, credit rating agency Moody's said on Monday.
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Infrastructure Capital Inc (HASI) - PRIVATE OFFERING OF $500 MILLION GREEN SENIOR UNSECURED NOTES DUE 2027 BY ITS UNITS Source text for Eikon: Further company coverage:
The dollar ticked higher on Monday, regaining some ground after falling for three straight weeks on bets that the Federal Reserve will soon be cutting interest rates, while bitcoin breached $42,000 for the first time since early 2022.
Fitch: * FITCH RATINGS: ITALIAN NON-LIFE INSURANCE SECTOR OUTLOOK IMPROVING; LIFE INSURANCE SECTOR NEUTRAL. * FITCH: ITALIAN NON-LIFE INSURANCE SECTOR WILL BENEFIT FROM HIGHER TARIFFS IN 2024 WHILE LIFE SECTOR WILL CONTINUE TO BE AFFECTED BY HIGH INTEREST RATES Source text for Eikon:
* Gold hits record for second day at $2,135.40/oz. * Speculators raise net long position in COMEX gold - CFTC. * Dollar up 0.2% against its rivals. By Anjana Anil. Gold edged down after scaling a record high on Monday, with growing confidence that the U.S. Federal Reserve would cut interest rates early next year, keeping bullion well above $2,000.
Sterling fell against a broadly stronger dollar on Monday, as traders mulled what the Bank of England might signal at its next policy meeting amid growing confidence that the Federal Reserve will soon be cutting interest rates.
Global central bank umbrella body, the BIS, eased its hardline stance on inflation on Monday, calling recent progress encouraging, but stressed that central banks were not out of the woods yet. Global economic data has begun to show a clear trend that multi-decade highs in inflation -- caused by the rebound from the COVID-19 pandemic and spike in energy prices -- are in the rear-view mirror.
Panama is eyeing a sharp cut to its forecast for 2024 economic growth after a court ruling prompted the government to order the closure of Canadian miner First Quantum's lucrative copper mine, a government official told Reuters.
* Easing of inflation encouraging, cbanks need to be nimble. * Credit risks could still unfold after surge in rates. By Marc Jones. Global central bank umbrella body, the BIS, eased its hardline stance on inflation on Monday, calling recent progress encouraging, but stressed that central banks were not out of the woods yet.
Brazil's current account deficit continued its downward trend in October, reaching $230 million, central bank data showed on Monday, primarily supported by the strength of the trade balance. The figure contrasts with the $399 million deficit anticipated by economists polled by Reuters.
Euro zone government bond yields edged higher on Monday after earlier touching multi-month lows as market bets on interest rate cuts ramped up following comments from European and U.S. policymakers last week. Greece's 10-year yield fell to its lowest since June after Fitch upgraded the country's sovereign rating to investment grade, following a similar move by S&P Global in October.
Brazil posted a current account deficit of $230 million in October, the central bank said on Monday, while economists polled by Reuters were expecting a $399 million deficit. Foreign direct investment for the month reached $3.306 billion, against a $4.6 billion forecast.
The Swiss National Bank has scope to keep its interest rate on hold at 1.75% next week before considering rate cuts next year, analysts said on Monday, after Swiss inflation further eased in November. In the last reading before the SNB's next monetary policy update, Swiss prices rose by 1.4% year on year, according to data from the Federal Statistics Office.
U.S. Federal Reserve officials appear on track to end the year with interest rate hikes as a thing of the past but with a coming challenge over when and how to signal a turn to rate cuts that investors, politicians and the public may demand before the central bank is ready. The issue may seem distant.
A look at the day ahead in U.S. and global markets from Mike Dolan After closing at their highest level of the year on Friday, U.S. stocks mostly hogged those gains into the new week - with 'peak rates' optimism, Friday's U.S. jobs report and falling oil prices jockeying with edgy geopolitics for attention.
U.S. Federal Reserve officials appear on track to end the year with interest rate hikes as a thing of the past but with a coming challenge over when and how to signal a turn to rate cuts that investors, politicians and the public may demand before the central bank is ready. The issue may seem distant.
- U.S. stocks ended lower on Monday, interrupting last week's rally, as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year.
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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