* Indexes up: Dow 0.12%, S&P 500 0.14%, Nasdaq 0.64% * Bill passes in 215-214 vote, sent to US Senate. * 30-year Treasury yields at fresh 19-month high. * Alphabet hits nearly three-month high. * Solar stocks fall on fears of subsidies ending. By Shashwat Chauhan and Kanchana Chakravarty.
Airbnb (ABNB) said on Thursday a new partnership with the Tour de France will boost its rental business across rural France, as it seeks to build on the success of last year's Paris Olympics at a time of lower demand in the U.S. The vacation rental company this month forecast softening demand in its top market as an erratic U.S. trade policy hurts consumer sentiment.
* G7 addresses non-market policies undermining economic security. * Draft communique hints at China's economic practices. * G7 considers increased sanctions on Russia over Ukraine conflict. By David Lawder and Promit Mukherjee.
Mexico's headline inflation rose more than expected in the first half of May, data from the national statistics agency showed on Thursday, jumping outside the central bank's target range for the first time this year.
Finance ministers and central bank governors from the Group of Seven nations pledged to address "excessive imbalances" in the global economy, according to a draft communique on Thursday.
Finance ministers and central bank governors from the Group of Seven nations pledged to address "excessive imbalances" in the global economy, Bloomberg News reported on Thursday, citing a draft communique. The finance leaders said there was a need for a common understanding of how "non-market policies and practices" undermine international economic security, Bloomberg News reported.
* Indexes: Dow down 0.17%, S&P 500 down 0.14%, Nasdaq up 0.15% * Bill passes in 215-214 vote, sent to US Senate. * 30-year Treasury yield at fresh 19-month high. * Snowflake shines after raising revenue forecast. * Solar stocks fall on fears of green-energy subsidies ending. By Shashwat Chauhan and Kanchana Chakravarty.
Longer-dated Treasury yields gained on Thursday with 30-year yields reaching the highest in 19 months as a worsening fiscal outlook for the United States raises concerns about demand for U.S. government debt.
U.S. existing home sales unexpectedly fell in April despite a temporary drop in mortgage rates and increased supply, and could remain lackluster this year amid rising economic uncertainty. Home sales slipped 0.5% last month to a seasonally adjusted annual rate of 4.00 million units, the National Association of Realtors said on Thursday.
* Existing home sales fall 0.5% in April. * Median house price rises 1.8% to $414,000 from year ago. U.S. existing home sales unexpectedly fell in April despite a temporary drop in mortgage rates and increased supply, and could remain lackluster this year amid rising economic uncertainty.
Federal Reserve Governor Christopher Waller said on Thursday he still sees a path to interest rate cuts later this year, and added that market pricing shows investors are worried the current Republican-backed budget and tax bill in Congress does not do enough to deal with the U.S. deficit.
* Fed's Waller says rate cuts possible later this year. * Key to easing policy is whether tariffs settle at lower end of range, he says. * Waller says markets are showing concern about government deficits. By Michael S. Derby.
* Weekly jobless claims fall 2,000 to 227,000. * Continuing claims increase 36,000 to 1.903 million. By Lucia Mutikani. The number of Americans filing new applications for unemployment benefits dropped last week, suggesting the economy maintained a steady pace of job growth in May, though it is becoming harder for those out of work to find new opportunities.
-Over-the-counter shares in Fannie Mae and Freddie Mac jumped to highest since 2008 on Thursday after U.S. President Donald Trump said he was considering taking the U.S. mortgage finance firms public. The United States Treasury owns preferred shares in the firms and warrants to purchase about 80% of their common stock, a holdover from a rescue during the?2008 housing loan crisis.
The number of Americans filing new applications for unemployment benefits dropped last week, suggesting the economy maintained a steady pace of job growth in May, though it is becoming harder for those out of work to find new opportunities. The weekly jobless claims report from the Labor Department on Thursday showed unemployment rolls approaching levels last seen in late 2021.
The number of Americans filing new applications for unemployment benefits dropped last week, suggesting the economy maintained a steady pace of job growth in May. Initial claims for state unemployment benefits fell 2,000 to a seasonally adjusted 227,000 for the week ended May 17, the Labor Department said on Thursday.
The 30-year Treasury yield hit a new 19-month high on Thursday, and was a few basis points from its highest since 2007, after the. House of Representatives passed a tax and spending bill. that reinforced market worries about the United States' debt burden.
* Bloc's PMI unexpectedly drops, falls below 50. * German Ifo index rises in May. * Surveys suggest cause for modest optimism. * No major rebound seen as services struggle. By Balazs Koranyi and Jonathan Cable.
A proposal for the U.S. Federal Reserve to release detailed economic forecasts after some of its meetings to anchor the discussion of monetary policy is drawing fire from the heads of its regional banks who worry it will be hard to agree on a common outlook and risks further confusing the public.
Washington has plenty of homegrown reasons to be worried about the U.S. debt trajectory, but shifting Japanese investor preferences are adding one more question mark about who will keep funding America's rising deficit. Most U.S. investors would typically treat the ructions seen in Japan's bond market on Tuesday as a sideshow.
* Former Fed chief Bernanke suggests releasing staff forecast each quarter. * Powell sees need for central bank to improve communications. * Fed's framework review pointing towards simpler approach. By Howard Schneider.
* Futures: Dow down 0.12%, S&P 500 up 0.08%, Nasdaq up 0.18% U.S. stock index futures steadied on Thursday after a fall in the previous session, when Treasury yields surged, as investors worried President Donald Trump's tax and spending bill could sharply inflate the country's debt burden.
* EZ business activity contracts in May. * U.S. debt concerns weigh on markets. * Johnson Matthey (JMPLF) logs best day on record after Honeywell (HON) deal. By Sruthi Shankar, Ragini Mathur and Purvi Agarwal. European stocks fell on Thursday as concerns over U.S. fiscal health kept Treasury yields elevated, while data showing weak euro zone business activity added to the gloom.
Japan's government on Thursday downgraded its assessment on the global economy in the face of uncertainty over U.S. trade policy, signalling its alarm over the broadening fallout from President Donald Trump's tariffs.
Japan's government on Thursday downgraded its assessment on the global economy in the face of uncertainty over U.S. trade policy, signalling its alarm over the broadening fallout from President Donald Trump's tariffs.
Australian exporters are upbeat on their business outlook in China as U.S. tariffs could enhance their competitive edge in Chinese markets, a top central bank official said on Thursday. In a speech in Sydney, Reserve Bank of Australia Deputy Governor Andrew Hauser said that during a recent trip to China he found confidence that Beijing would do what was needed to sustain economic growth.
Australian exporters are upbeat on their business outlook in China as U.S. tariffs could enhance their competitive edge in Chinese markets, a top central bank official said on Thursday. In a speech in Sydney, Reserve Bank of Australia Deputy Governor Andrew Hauser said that during a recent trip to China he found confidence that Beijing would do what was needed to sustain economic growth.
A downturn for British firms eased in May despite a darkening picture for manufacturers who cut jobs at one of the fastest rates since the global financial crisis almost 20 years ago, according to a survey published on Thursday.
Euro zone business activity unexpectedly slipped back into contraction this month as the bloc's dominant services industry suffered a deeper downturn in demand, although manufacturing showed further signs of stabilisation, a survey showed.
U.S. long-dated bond yields nudged up to new multi-month highs on Thursday, before stabilising, a day after soft demand for a sale of 20-year bonds underscored market worries about the United States' increasing debt burden. Investors are also watching a sweeping tax and spending bill that is expected to worsen the fiscal outlook.
Japan's Nikkei share average closed at a two-week low on Thursday, as investors turned risk-off after sharp declines on Wall Street and a spike in U.S. Treasury yields stoked worries about a flight from U.S. assets. The Nikkei fell 0.84% at 36,985.87, its lowest close since May 8. The broader Topix slipped 0.58% to 2,717.09. "Caution emerged that there may be another sell-off of U.S. assets.
Japanese government bond yields jumped on Thursday following remarks from a Bank of Japan board member who saw no need for the central bank to step into the market even as super-long bond yields are hovering around record levels. "At times, central banks must take action to stabilise markets.
Bank of Japan board member Asahi Noguchi said on Thursday he saw no need for the central bank to intervene in the bond market to stem recent sharp rises in super-long yields, describing the moves as "rapid but not abnormal."
* US 30-year bond yields at 5% * Eurozone business activity surveys awaited. * Trump's tax and spending bill would add $3.8 trillion to US debt. * Investor sentiment hit by Moody's downgrade of US debt last week. * Bitcoin surges to all-time peak, gold rises on safe-haven demand. By Johann M Cherian.
OCI NV: * ENTERS 2025 WITH POSITIVE MOMENTUM. * DISTRIBUTES USD 1.0 BILLION TO SHAREHOLDERS IN MAY. * NET CASH FROM CONTINUING OPERATIONS AT USD 1,033 MILLION AS OF MARCH 31. * METHANOL SALE TO METHANEX EXPECTED TO CLOSE IN Q2 2025. * SECURED A BINDING SUPPORT AGREEMENT WITH A LARGE GROUP OF BONDHOLDERS REGARDING TREATMENT OF 2033 BONDS.
Japan's 10-year government bond yield rose to its highest in more than 1-1/2 months on Thursday after U.S. Treasury yields jumped following weak demand for the sale of 20-year bonds. The 10-year JGB yield rose 3.5 basis points to 1.55%, its highest since March 28.
The European Central Bank is expected to cut interest rates once again in June but the case is growing for a pause beyond that as the economy is holding up better than feared and an inflation challenge is starting to creep up on the horizon.
Japan's Nikkei share average fell to a two-week low on Thursday, as investors turned risk-off after sharp declines on Wall Street and a spike in U.S. Treasury yields stoked worries about a flight from U.S. assets.
* US 30-year bond yields at 5% * Trump's tax and spending bill would add $3.8 trillion to US debt. * Investor sentiment dragged down by Moody's downgrade of US debt last week. * Bitcoin surges to all-time peak, gold rises on safe-haven demand. By Johann M Cherian.
Japan's Nikkei share average fell to a two-week low on Thursday, tracking the sharp declines on Wall Street, while a spike in U.S. Treasury yields and a stronger yen weighed on sentiment.
Japan's manufacturing activity extended declines for nearly a year in May, as factories continued to take a hit from U.S. tariffs on Japanese goods, a business survey showed on Thursday. While service-sector activity showed some resilience and stayed in expansionary territory, feeble manufacturing performance drove overall Japanese businesses back to contraction.
-The U.S. Treasury Department saw soft demand for a $16 billion sale of 20-year bonds on Wednesday with investors worried about the country's increasing debt burden as Congress wrangles with a tax and spending bill that is expected to worsen the fiscal outlook.
U.S. President Donald Trump said on Wednesday he will make a decision in the near future about taking mortgage finance firms Fannie Mae and Freddie Mac public, saying that he is giving "very serious consideration" to doing so.
Brazil's latest monetary policy minutes remains valid and keeps options open for future moves, a central bank director said on Wednesday, signaling that stable inflation expectations were crucial for the current tightening cycle to be halted. Earlier this month, the bank. raised. its benchmark interest rate to 14.75%, the highest in nearly 20 years, and dropped any forward guidance.
U.S. President Donald Trump said on Wednesday he will make a decision in the near future about taking Fannie Mae and Freddie Mac public, a move which he said he is giving "very serious consideration." In a post on Truth Social, Trump said he will speak with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Federal Housing Finance Director William Pulte about doing so.
* US stocks end sharply lower after Treasury auction. * Yields on the 20-year debt rise to highest since November 2023. * Tax-cut bill fuels further federal deficit concerns. * Oil prices end lower; bitcoin hits a record high. By Caroline Valetkevitch.
TRADING DAY. Making sense of the forces driving global markets. By Jamie McGeever, Markets Columnist?. U.S. debt despair. Investors' unease about holding long-dated sovereign debt was magnified by a soft 20-year U.S. Treasury note auction on Wednesday, which slammed the dollar and stocks, pushed long bond yields higher and steepened the U.S. yield curve.
TRADING DAY. Making sense of the forces driving global markets. By Jamie McGeever, Markets Columnist. U.S. debt despair. Investors' unease about holding long-dated sovereign debt was magnified by a soft 20-year U.S. Treasury note auction on Wednesday, which slammed the dollar and stocks, pushed long bond yields higher and steepened the U.S. yield curve.
-The U.S. Treasury Department saw soft demand for a $16 billion sale of 20-year bonds on Wednesday with investors worried about the country's increasing debt burden as Congress wrangles with a tax and spending bill that is expected to worsen the fiscal outlook.
* US stocks drop after Treasury auction. * Tax-cut bill fuels further federal deficit concerns. * Oil prices end lower. By Caroline Valetkevitch. Major stock indexes fell on Wednesday as investors worried about a deteriorating U.S. fiscal outlook and as Treasury yields climbed following a $16 billion sale of 20-year bonds by the Treasury Department.
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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