The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, but could rebound in the weeks ahead as a partial strike by the United Auto Workers union forces automobile manufacturers to temporarily lay off workers because of shortages of some materials.
Weekly Initial Jobless Claims?were 201,000, a decrease of 20,000 from the previous week's revised level, according to data the Labor Department?released?on Thursday. The number is below the average economist estimates of 225,000 and lower than the previous week's revised level. The previous week's level was revised up by 1,000 from 220,000 to 221,000.
Big central banks are closing in on the end of their rate hiking cycles, starting to surprise markets as their outlooks on when and how they will cease monetary tightening diverge.
Nigeria's central bank said on Thursday that it had delayed an interest rate meeting that had been planned for next week and that it would schedule a new meeting later. In a statement on its website, the Central Bank of Nigeria did not say why the Sept. 25-26 meeting of its Monetary Policy Committee was delayed and a new date would be set later.
The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, but could rebound in the weeks ahead as a partial strike by the United Auto Workers union forces automobile manufacturers to temporarily lay off workers because of shortages of some materials.
Financial markets are hoping Prime Minister Benjamin Netanyahu keeps Bank of Israel Governor Amir Yaron for a second term to safeguard the bank's independence and provide reassuring stability to an economy rattled by political turmoil this year.
Turkey's central bank raised its key interest rate by a lofty 500 basis points to 30% on Thursday, marking a second month of aggressive tightening after President Tayyip Erdogan set aside his long opposition to tight policy. The bank reiterated it is ready to raise rates further as needed to rein in inflation that leapt to nearly 59% in August and is expected to rise into next year.
* World stocks on longest losing streak since March. * Dollar highest since March. * Swiss franc tumbles on surprise SNB rate hold. * Sterling drops as BoE holds. * Bond yields up as Fed signals another hike possible. By Marc Jones.
The pound and Swiss franc tumbled on Thursday after the British and Swiss central banks kept rates unchanged, while the dollar hit a 6-1/2 month high after the U.S. Federal Reserve signalled policy would remain restrictive for longer.
* EM stocks hit over three-month low. * FX headed for worst day in two weeks. * Turkish c.bank hikes rates by 500 bps as expected. * South Africa expected to hold rates steady. By Johann M Cherian and Amruta Khandekar.
* FedEx (FDX) gains on surprise profit beat. * Broadcom (AVGO) down on report Google to replace co as AI chip supplier. * Futures down: Dow 0.54%, S&P 0.78%, Nasdaq 1.06% By Ankika Biswas and Shristi Achar A. Sept 21 - U.S. stock index futures fell on Thursday pressured by a decline in growth stocks as Treasury yields jumped after the Federal Reserve signaled that another rate hike was in the offing this year.
Euro zone bond yields rose on Thursday to multiple-month highs after the Federal Reserve and the Bank of England kept rates unchanged but flagged more hikes could come as the central banks continue to worry about inflation. The BoE halted interest rate at 5.25% as the British economy slowed, but it said it was not taking a recent fall in inflation for granted.
Futures for Canada's main stock index slipped on Thursday, weighed down by weak commodity prices after the U.S. Federal Reserve hardened its hawkish stance, signalling more rate hikes later this year. September futures on the S&P/TSX index were down 0.8% at 7:12 a.m. ET.
STOCKS: The benchmark BSE Sensex fell 570.6 points, or 0.85%, to 66,230.24, while the broader NSE index lost 159.05 points, or 0.80%, to 19,742.35 in a broad-based selloff, after the U.S. Federal Reserve signalled that interest rates will remain elevated for longer.
Bank of England Governor Andrew Bailey said on Thursday that the central bank would be watching closely to see if further increases to interest rates are needed.
The pound fell to its lowest since March and British stocks rallied after the Bank of England. held interest rates. steady at 5.25%, following a cooler-than-expected inflation print the previous day. Sterling was last down 0.57% at $1.2273 at 1115 GMT, after touching its lowest since late March at $1.2231 just after the decision.
The pound extended losses on Thursday after the Bank of England. held interest rates. steady at 5.25% as inflation slowed more than expected in August. Sterling was last down 0.65% at $1.2266, its lowest since March, having traded around 0.4% lower at $1.23 before the BoE decision. Meanwhile, the euro was last 0.48% higher against the pound at 86.77 pence.
The Bank of England halted its long run of interest rate increases on Thursday as the British economy slowed, but said it was not taking a recent fall in inflation for granted.
Inflation and ongoing market volatility remain the primary concerns of business leaders of mid-sized corporates and organizations surveyed by Citi Commercial Bank in its first ?Global Industry Insights Report? released today.
Obesity and overweight are estimated to have caused a staggering $37.3 billion reduction in New York?s economy in 2022, equivalent to 1.8% of the state's gross domestic product, according to a report released by GlobalData Plc (GLDAF), a leading data and analytics company.
The Swiss National Bank held out the prospect of further interest rate hikes later this year after it surprised markets on Thursday by pausing its current cycle of increases, sending the Swiss franc reeling. The SNB held its policy interest rate unchanged at 1.75%, noting that inflation has ebbed lower in Switzerland, but said a further tightening cannot be ruled out.
-U.S. stock index futures fell on Thursday pressured by a decline in growth stocks as Treasury yields jumped after the Federal Reserve signaled that another rate hike was in the offing this year. Rate-sensitive stocks including Apple, Meta Platforms, Alphabet, and Nvidia fell between 0.6% and 2.3% in premarket trading as the two-year and 10-year Treasury yields scaled multi-year highs.
-U.S. stock index futures fell on Thursday pressured by a decline in growth stocks as Treasury yields jumped after the Federal Reserve signaled that another rate hike was in the offing this year. Rate-sensitive stocks including Apple, Meta Platforms, Alphabet, and Nvidia fell between 0.6% and 2.3% in premarket trading as the two-year and 10-year Treasury yields scaled multi-year highs.
India's benchmark indexes on Thursday closed at a two-week low in a broad-based selloff, after the U.S. Federal Reserve signalled that interest rates will remain elevated for longer. The Nifty 50 closed 0.8% lower at 19,742.35 points, its lowest close since Sept.7, while the S&P BSE Sensex declined about 0.85% to 66,230.24 points.
Taiwan's central bank on Thursday flagged continued tight monetary policy as it keeps a close eye on inflation, and trimmed its 2023 growth forecast for the export-reliant economy. Taiwan is a major producer of semiconductors used in everything from cars to smartphones and sluggish global demand has affected its many tech manufacturers.
Central banks line up across the world on Thursday to deliver updated policy settings but global markets sulked at the Federal Reserve's refusal to sound an all-clear on rate hikes as it left one last move this year on the table on Wednesday. At least eight major central banks are meeting on Thursday. Both Swedish and Norwegian central banks have already announced further rate rises, as expected.
* Futures down: Dow 0.25%, S&P 0.40%, Nasdaq 0.59% U.S. stock index futures declined on Thursday as growth stocks took a hit from a jump in Treasury yields after the Federal Reserve held interest rates steady while hinting at another hike this year.
Canada's record of declining productivity over the past three years is likely to make it more difficult for the Bank of Canada to tame inflation, raising the prospect of additional interest rate hikes even as the economy slows. The Canadian central bank had expected productivity, or output per hour worked, to improve as the economy recovered from the COVID-19 pandemic.
Hungary's forint fell 1%
to a two-week low against the euro on Thursday amid some bets on
chances of bigger interest rate cuts after the central bank
chief forecast inflation, now at a headline ...
STOCKS: The benchmark BSE Sensex fell 570.6 points, or 0.85%, to 66,230.24, while the broader NSE index lost 152.5 points, or 0.77%, to 19,748.9, in a broad-based sell-off, after the U.S.Federal Reserve singnalled that interest rates will remain elevated for longer.
Central banks line up across the world on Thursday to deliver updated policy settings but global markets sulked at the Federal Reserve's refusal to sound an all-clear on rate hikes as it left one last move this year on the table on Wednesday. At least eight major central banks are meeting on Thursday. Both Swedish and Norwegian central banks have already announced further rate rises, as expected.
The dollar hit a 6-1/2 month high on Thursday after the U.S. Federal Reserve signalled policy would remain restrictive for longer, even after holding rates steady, while the Swiss franc tumbled after the Swiss National Bank kept rates unchanged.
Copper prices fell to the lowest in five weeks in London on Thursday as the U.S. Federal Reserve signalled policy would remain restrictive for longer, the dollar rose to a six-month high and data showed further growth in the metal inventories. Three-month copper on the London Metal Exchange fell 1.9% to $8,187.5 per metric ton by 0939 GMT after touching $8,171, its lowest since August 17.
* US yields and dollar advance after FOMC meet. * Fed sees interest rates staying tight through 2024. * Gold off Sept. 1 highs hit on Wednesday. By Deep Kaushik Vakil. Gold extended its decline on Thursday, weighed by the surge in the U.S. dollar and U.S. bond yields after the Federal Reserve hardened its hawkish posture on interest rates.
* World stocks on longest losing streak since March. * Dollar highest since March. * Swiss franc tumbles on surprise SNB rate hold. * Fed signals another hike possible. * Traders see close Bank of England call later. By Marc Jones.
* Swiss National Bank leaves rates unchanged. * C.banks in Sweden and Norway hike rates again. * JD Sports on track to meet annual profit forecast; shares up. * Ocado (OCDGF) slides after Exane downgrade. * STOXX 600 down 0.6% By Bansari Mayur Kamdar.
China and Hong Kong stocks slipped further on Thursday as risk sentiment was hit after the U.S. Federal Reserve signalled another rate hike by year-end and much tighter monetary policy through 2024 than previously expected.
Norway's central bank raised its benchmark interest rate by 25 basis points to 4.25% on Thursday to curb inflation, as widely predicted, and, in a surprise move, said it would probably hike again in December.
The battle against inflation is not yet over, Swiss National Bank Chairman Thomas Jordan said on Thursday, after the central bank paused its recent series of rate hikes designed to combat price rises. "We will decide in December whether a further tightening of monetary policy is necessary," Jordan told reporters.
The dollar hit a 6-1/2 month high on Thursday after the U.S. Federal Reserve signalled policy would remain restrictive for longer, even after holding rates steady, while the Swiss franc dropped after the Swiss National Bank kept rates unchanged.
Norway's central bank raised its benchmark interest rate by 25 basis points to 4.25% on Thursday to curb inflation, as widely predicted, and, in a surprise move, said it would likely hike again in December.
The pound fell slightly on Thursday as traders waited for a finely balanced Bank of England interest rate decision later in the day. Sterling was down 0.28% at $1.2309. Meanwhile, the euro was 0.23% higher against the pound at 86.55 pence.
The Swiss National Bank will not hesitate to raise interest rates again to keep inflation below its 2% target, Chairman Thomas Jordan said on Thursday, after the central bank unexpectedly kept its interest rate on hold.
Euro zone bond yields rose on Thursday to multiple-month highs after the Federal Reserve kept rates unchanged, projected another rate hike by year end and much tighter monetary policy through 2024 than previously expected. The focus of investors remained on central banks with rate-setting meetings on Thursday in Britain, Norway, Sweden and Switzerland.
* Central bank policy unchanged for first time since March 2022. * Chairman keeps prospect open for further hikes. * Analysts describe decision as 'hawkish pause' * Decision sends franc down vs euro, dollar. By John Revill.
The Swiss National Bank held its policy interest rate unchanged at 1.75% on Thursday as the central bank paused its campaign against inflation which has recently ebbed lower in Switzerland. The SNB kept its policy rate and the rate it charges on sight deposits at the same level it set in June, marking the first time the central bank has not hiked rates since March 2022.
STOCKS: The benchmark BSE Sensex fell 626.04 points, or 0.94%, to 66,174.8, while the broader NSE index lost 162.35 points, or 0.82%, to 19,739.05, dragged by IT stocks, after the U.S. Federal Reserve signalled that interest rates could stay higher for longer.
* STOXX 600 down 0.6% European shares fell on Thursday, tracking overnight losses on Wall Street after the U.S. Federal Reserve signalled higher-for-longer interest rates and ahead of rate decisions from the Swiss National Bank, Riksbank, Norges Bank and Bank of England.
The CNN Money Fear and Greed index showed a slight decline in overall sentiment among U.S. investors on Wednesday. U.S. stocks closed lower on Wednesday after the Federal Reserve maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting. General Mills Inc reported better-than-expected earnings for its first quarter.
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.
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