* 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.
The Bank ?of Mexico ?held its benchmark ?interest rate ?at ?7.00% on ?Thursday, ?in line with expectations ?amid ?recent ?upticks in both inflation and ?economic growth. The decision by the central ?bank's ?five-member governing board was ?unanimous, the bank said in a statement.
Bank of Canada Governor Tiff Macklem ?on Thursday ?welcomed the ?nomination of ?Kevin ?Warsh as chair of ?the U.S. ?Federal Reserve, saying he ?had ?a ?deep knowledge of financial markets and ?the international monetary system. "I'm looking forward to working ?with ?Kevin," he said in ?a question and answer session after giving a speech in ?Toronto.
Brazil's trade surplus reached $4.3 billion in January, the Ministry of Development, Industry, Trade and Services ?said on Thursday, up 85.8% from a year ?earlier but below the $4.9 billion expected by ?economists in a Reuters ?poll. Exports from ?Latin America's largest economy fell 1.0% from a year ?earlier to $25.2 billion, ?while imports dropped a sharper 9.8% to $20.8 billion.
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.
The World Economic Forum has launched an independent investigation into its CEO Borge ?Brende to clarify his relationship ?with sex offender Jeffrey Epstein, ?the organisation said ?on Thursday.
* Bank of England leaves rates unchanged, pound drops. * Dollar strengthens amid risk aversion and central bank decisions. By Laura Matthews and Amanda Cooper. The U.S. dollar hit a nearly two-week high on Thursday as fresh volatility gripped stocks and the pound tumbled after a razor-thin Bank of England vote left UK rates unchanged.
European Central Bank President Christine Lagarde will present EU leaders next week with a checklist of measures needed to enhance growth and competitiveness, taking an unusual step to raise pressure on governments to speed up ?a slow and often timid reform process.
U.S. Treasury Secretary Scott Bessent on Thursday declined to commit that the Trump administration would not sue Kevin Warsh, its nominee to lead the Federal Reserve, if he follows a monetary path opposed by the president.
U.S. Treasury Secretary Scott Bessent on Thursday said ?he supports President ?Donald Trump's call for capping ?credit card ?interest ?rates at 10% for one ?year. "I wholeheartedly ?support President Trump's policy," Bessent told ?the ?Senate ?Banking Committee, when asked about the call.
U.S. Treasury Secretary Scott Bessent declined on ?Thursday to commit the ?Trump administration to ?not suing Kevin Warsh, ?its ?nominee to be Federal ?Reserve Chair, ?if he follows a monetary path ?opposed by ?the ?president.
The Indian central bank has approved private equity firm Blackstone's acquisition of up to ?a 9.99% stake in Federal Bank, the ?private lender said on Thursday. The deal, ?which would make Blackstone ?the largest shareholder ?in the bank, adds to the growing list ?of large investments by ?marquee investors in the financial services sector in India.
* Weekly jobless claims increase 22,000 to 231,000. * Continuing claims rise 25,000 to 1.844 million. * Job openings drop 386,000 to 6.542 million in December. * Hiring advances 172,000 to 5.293 million; quits steady. By Lucia Mutikani.
Following is the text of European Central Bank President Christine Lagarde's statement after the bank's policy meeting on Thursday: Link to statement on ECB website: https://www.ecb.europa.eu/press/press_conference/monetary-policy-statement/2026/html/ecb.is260205~50858cb986.en.html. Good afternoon, the Vice-President and I welcome you to our press conference.
The number of Americans filing new applications for unemployment benefits increased more than expected last week amid winter storms, and while job openings fell to a more than five-year low in December, the decline was concentrated in a single industry.
The number of Americans filing new applications for unemployment benefits increased more than expected last week, likely boosted by snowstorms across much of the country, but labor market conditions remain stable. Initial claims for state unemployment benefits jumped 22,000 to a ?seasonally adjusted 231,000 for the week ended January 31, the Labor Department said on Thursday.
* FTSE 100 down 0.9% and FTSE 250 down 1% * Shell misses profit expectations, drags energy stocks lower. * Bank of England holds rates after narrow 5-4 vote. * Rio Tinto and Glencore scrap merger talks. * Software, tech stocks rebound from global rout. By Tharuniyaa Lakshmi.
Bank of England governor Andrew Bailey on Thursday ?welcomed U.S. President ?Donald Trump's choice of ?former Federal ?Reserve ?Governor Kevin Warsh to ?head the U.S. ?central bank when Jerome Powell's ?leadership ?term ?ends in May. "I welcome the nomination of Kevin ?Warsh," Bailey told a press conference.
* Pound and gilts hit as vote sends doveish signal. * Policymakers voted 5-4 to keep rates at 3.75% * Reuters poll had expected 7-2 vote split. * Lower inflation, political risk in focus. By Lucy Raitano.
* Bank of England leaves rates unchanged, pound drops. * Euro down ahead of ECB decision, focus on rate outlook. * Dollar strengthens amid risk aversion and central bank decisions. By Amanda Cooper.
* BoE keeps Bank Rate at 3.75%, as expected. * MPC's 5-4 vote was closer than 7-2 seen in Reuters poll. * Policymakers expect further reduction in rates. * BoE cuts inflation forecasts, sees less growth in 2026. * Some MPC members worry inflation might stay too high. By William Schomberg, David Milliken and Andy Bruce.
Sterling and two-year gilt yields fell on Thursday after the Bank of ?England held rates steady in a ?surprisingly narrow vote and said ?it expected a future ?cut if ?inflation continued to slow.
Euro zone bond yields were broadly steady on Thursday against a backdrop of fragile global markets and ahead of a European Central Bank interest rate decision which investors widely expect will keep rates unchanged.
* FTSE 100 down 0.4% and FTSE 250 down 0.7% * Shell misses profit expectations, drags energy stocks lower. * BoE expected to hold rates. * Software, tech stocks ?rebound from global rout.
In the 15 years since leaving the Federal Reserve, Kevin Warsh has lectured often that the ideal central bank is one with the smallest possible footprint in the economy, focused intently on controlling inflation, and bound in part by policy rules rather than letting officials act as free-ranging "overlords."
In the 15 years since leaving the Federal Reserve, Kevin Warsh has lectured often that the ideal central bank is one with the smallest possible footprint in the economy, focused intently on controlling inflation, and bound in part by policy rules rather than letting officials act as free-ranging "overlords."
* Tech selloff pressures Asian stocks. * Ukraine, Russia start second day of talks. * Czech central bank expected to hold rates steady. * MSCI FX off 0.3%, stocks shed 1.5% By Purvi Agarwal. Most emerging-market currencies treaded water against a rising dollar on Thursday, while an ongoing rout in technology stocks pressured Asian bourses and dampened investor appetite for other EM equities.
* ECB set to keep rates steady at 1315 GMT. * Bank of England also expected to hold rates, decision due 1200 GMT. * Dollar-yuan little changed after Trump-Xi phone call. By Gregor Stuart Hunter and Amanda Cooper.
Britain's construction sector showed signs at the start of the year that it might be past the worst of a slump, as recent interest rate cuts and less of a decline in new work raised hopes of a turnaround, a survey showed on Thursday. The S&P Global/CIPS UK construction ?Purchasing Managers' Index rose to 46.4 in January from December's 40.1, which was just above a 5-1/2 year low.
Euro zone bond yields were steady on Thursday against a backdrop of fragile global markets and ahead of a European Central Bank interest rate decision which investors widely ?expect will keep rates unchanged.
China opposes any country undermining the?international economic ?and trade order ?through rules imposed ?by small ?groups, ?the Chinese foreign ministry ?said on ?Thursday, after the United States ?unveiled ?plans ?for a preferential trade bloc of allies ?for critical minerals.
The European Central Bank left interest rates on hold as expected on Thursday and played down the impact of dollar moves on its future choices, with a largely unchanged inflation outlook also suggesting steady policy for months to come.
* Dollar moves already incorporated in baseline, says Lagarde. * Keeps guidance for meeting-by-meeting, data-dependent approach. * Investors betting on steady interest rates all year. * Economic growth healthy, inflation seen at target in medium term. By Balazs Koranyi and Francesco Canepa.
The U.S. Federal Reserve announced on Wednesday it would not adjust large bank capital levels during the 2026 stress testing cycle, as the central bank considers several changes to the annual exercise aimed at boosting ?transparency.
* ECB set to keep rates steady at 1315 GMT. * Bank of England also expected to hold rates, decision due 1200 GMT. * Dollar-yuan little changed after Trump-Xi phone call. By Gregor Stuart Hunter.
MSCI's global equities gauge slumped more than 1% on Thursday as worries deepened about the enormous cost of the artificial intelligence boom, while U.S. Treasuries were in demand after weak labor market data and, in commodities, silver took another hammering.
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. The greenback found firmer footing this week as investors turned more risk-averse and financial markets assessed results so far in the U.S. corporate earnings season, now halfway complete.
* ECB set to keep rates steady at 1315 GMT, press conference due 1345 GMT. * Bank of England also expected to hold rates, decision due 1200 GMT. * Dollar-yuan little changed after Trump-Xi phone call. By Gregor Stuart Hunter.
Federal Reserve Governor Lisa Cook on Wednesday signaled that she will not support another interest-rate cut until she sees more proof that price pressures are receding, saying she is more concerned about stalled progress on inflation than a weakening labor market.
U.S. Federal Reserve Governor Lisa Cook on Wednesday said she feels the policy interest ?rate now is only mildly ?restrictive, and signaled she supports ?taking time before reducing ?interest ?rates further.
Federal Reserve Governor Lisa Cook on Wednesday said she is more concerned about stalled progress on inflation than a weakening labor market, a strong signal that she will not support another interest-rate cut until price pressures that built last year due to tariffs begin to recede.
Federal Reserve Governor Lisa Cook on Wednesday said she is more concerned about stalled progress on inflation than a weakening labor market, a strong signal that she will not support another interest-rate cut until price pressures that built last year due to tariffs begin to recede.
The European Central Bank is all but certain to keep interest rates unchanged on Thursday and signal that no policy move is imminent, even if the euro's recent surge against the dollar fuels concerns that inflation might undershoot its target.
* Euro's FX move not big enough to worry ECB. * Investors betting on steady interest rates all year. * Domestic consumption is offsetting external weakness. By Balazs Koranyi and Francesco Canepa.
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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