Latest News
-
Stocks rise, Treasury yields increase on the hope of a reopened US government
MSCI's global equity gauge rose 1.4% on Sunday, while government bond yields increased modestly. This was on bets that the U.S. shutdown would soon come to an end. On Sunday, the U.S. Senate advanced a measure that would end the shutdown. The shutdown is now in its fourth day and has caused federal workers to be sidelined, food aid to be delayed, air travel to be obstructed, and the government's economic data not released. The House of Representatives must approve the bill if the Senate passes it. This would fund the federal government until the end of January and include three full-year budget bills. The Nasdaq Composite gained 522.64 or 2.27% points to 23,527.17, its largest daily gain since May 27, and the S&P 500 rose 103.63 or 1.54% points to 6,832.43, its biggest percentage gain in a single day since October 13. The Dow Jones Industrial Average gained 381.53 points or 0.81% to 47,368.63. Robert Pavlik said that there is a greater willingness to accept additional risk, because the possibility of the government reopening this week has increased. Right now, it's more of a relief rally. Pavlik stated that investors are concerned about anecdotal evidence "of people staying home and spending less" and they are anxious to resume official economic reports in order to get "hard evidence." He said that investors were increasingly focused on valuations. The MSCI index of global stocks rose by 13.65 points or 1.38% to 1,004.97. This is its largest daily gain since June. The pan-European STOXX 600 closed earlier up 1.42%. Despite the fact that last week's nongovernment data raised concerns about a weakening U.S. labour market, Federal Reserve officials have reiterated their preference to be cautious in further rate reductions. Alberto Musalem, President of the St. Louis Federal Reserve, said that the Fed, with the inflation rate closer to 3%, than its 2% target, an economy in resilience, accommodative financial conditions, and a monetary policy near neutral, should "tread carefully" when it comes to further interest rates cuts. According to CME Group’s FedWatch tool, traders are pricing in an approximately 64% chance that the central banks will reduce rates by 25 basis point next month. Fed Governor Stephen Miran stated on Monday that a rate cut of 50 basis points would be appropriate in December. He noted that the inflation rate was falling, while the unemployment rate was rising. Investors favored riskier assets as they hoped for an end to government shutdown. The yield on the benchmark 10-year note rose by 2.7 basis point to 4.12% from 4.093% at Friday's close, while the 30-year bond rate rose by 0.9 basis point to 4.7103%. The yield on the 2-year bond, which is usually in line with expectations of interest rates for the Federal Reserve rose by 3.8 basis points, to 3.595% from 3.557%. Safe haven currencies, including the Australian Dollar, fell against the U.S. dollar as the risk sentiment was boosted following signs that the U.S. Government is nearing a reopening. The Australian dollar rose 0.71% against the greenback, to $0.6537. Meanwhile, the New Zealand kiwi increased 0.32% to $0.5644, and the Canadian dollar rose 0.22% to C$1.402 a dollar. The dollar gained 0.46% against the Japanese yen to $1.1559 and the euro fell 0.05%. Bitcoin gained 1%, reaching $105,550.98. Investors bet on rate reductions after signs of economic slowdown last week, while a weaker US dollar provided support. Spot gold increased by 2.82%, to $4.111.58 per ounce. U.S. Gold Futures increased 2.72% to $4108.20 per ounce. The oil prices rose on Monday, after fluctuating between gains and losses throughout the session. Analysts focused on possible fuel supply disruptions due to fresh U.S. sanction and Ukrainian drone strikes on Russian refineries. However, predictions of an excess crude supply kept gains in check. U.S. crude oil settled up 0.64% or 38 cents to $60.13 a barrel. Brent settled at $64.06 per barrel, up by 0.68% or 43 cents. (Reporting and editing by Sinead carew, Nell Mackenzie, and Rae Wee.)
-
Stocks rise, US Treasury yields increase on the hope of a reopening US government
MSCI's global equity index rose more than 1% Monday, while government bond yields increased on bets the U.S. shutdown would soon end. This would allow official data releases to resume and provide more clarity about the state of economy. On Sunday, the U.S. Senate advanced a measure that would end the shutdown. The shutdown is now in its fourth day and has caused federal workers to be unable to work, food aid delays, air travel problems, and the halting of economic data released by the government. Kevin Hassett, White House economist, had said earlier that day in an interview that the fourth-quarter Gross Domestic Product could be negative if there was a shutdown. The House of Representatives must approve the Senate bill and send it to the President Donald Trump. This process could take several weeks. S&P 500 ended slightly higher Friday, as Washington showed signs of progress. The S&P 500 had fallen earlier in the morning following a report stating that U.S. Consumer Sentiment slumped to an almost 3-1/2 year low due to fears about the economic fallout. Robert Pavlik said that there is a greater willingness to accept additional risk, because the possibility of a government reopening this week has increased. Right now, it's more of a relief rally. Pavlik stated that investors are concerned about anecdotal evidence "that people stay home and don't spend as much," and they are eager for the return of official economic reports to provide "hard evidence." He said that investors were increasingly focused on valuations. The Dow Jones Industrial Average rose 362.79 points or 0.77% to 47,349.89. The S&P 500 gained 100.99 points or 1.50% to 6,829.79. And the Nasdaq Composite grew 520.79 or 2.26% to 23,525.33. MSCI's global stock index rose by 13.73 points or 1.39% to 1,005.05. This is its largest one-day percentage increase since June. The pan-European STOXX 600 closed earlier up 1.42%. While the non-government data released last week stoked concerns about a weakening U.S. labour market, Federal Reserve officials have reiterated that they prefer to be cautious in further rate reductions. According to CME Group’s FedWatch tool, traders are pricing in an approximately 62% chance that the central banks will reduce rates by 25 basis point next month. Fed Governor Stephen Miran stated Monday that a rate cut of 50 basis points would be appropriate in December. He noted that the inflation rate was falling, while the unemployment rate was rising. Alberto Musalem, President of the St. Louis Federal Reserve, said that the Fed, with the inflation rate nearing 3%, a resilient economy, accommodative financial conditions, and a monetary policy at neutral levels, should "tread carefully" when it comes to further interest rates cuts. Investors favored riskier assets as they hoped for an end to government shutdown. The benchmark 10-year U.S. note yield increased by 1.5 basis points, to 4,108% from 4.093% at the end of Friday. The yield on the 2-year note, which is usually in line with Fed interest rate expectations, increased 3.2 basis points from Friday to 3.589%. Risk-sensitive currencies The Australian dollar, for example, rose against the U.S. dollar, as the risk sentiment was boosted following signs that the U.S. Government is getting closer to reopening. The Australian dollar rose 0.71% against the greenback, to $0.6538. New Zealand's Kiwi grew 0.34% to $0.5645. The Mexican peso increased 0.48% against the dollar to 18.379. The dollar gained 0.39% against the Japanese yen to reach 154, while the euro fell 0.03% to $1.1561. Bitcoin gained 1.31%, reaching $105,873.42. Safe-haven Investors bet on rate reductions after signs of economic slowdown last week, while a weaker US dollar provided support. Spot gold increased by 2.86%, to $4113.09 per ounce. U.S. Gold Futures rose by 2.72% to $4108.20 per ounce. The oil prices rose on Monday, after fluctuating between gains and losses throughout the session. Analysts remained steadfast in their predictions that the rising supply would outweigh the demand over the next few months. Meanwhile, investors increased their risk appetite as they hoped for the reopening of the U.S. federal government. U.S. crude oil settled up by 0.64% or 38 cents to $60.13 a barrel. Brent crude settled at $64.06 per barrel, up by 0.68% or 43 cents. Reporting by Sinead carew, Nell Mackenzie, and Rae Wee Editing done by Kim Coghill and Dhara Ranasinghe Clarence Fernandez Richard Chang
-
Gold reaches a two-week high as weak economic data confirms bets on rate cuts
Gold prices rose nearly 3% Monday, hitting a two-week-high as weak economic data from the United States fueled expectations that the Federal Reserve would cut interest rates. This increased demand for this non-yielding investment. As of 2:21 pm, spot gold rose 2.8% to $4.111.39 an ounce. ET (1921 GMT), after reaching its highest level in more than a month earlier. U.S. Gold Futures for December Delivery rose 2.8%, settling at $4.122.00 an ounce. Peter Grant, senior metals analyst at Zaner Metals and vice president of Zaner Metals, said that "we could still see a rate cut in December" due to the weak data from last week. Last week, data showed that the U.S. economy lost jobs in October. These losses were in the retail and government sectors. Data on Friday also showed that U.S. consumer confidence dropped in early November, as consumers worried about economic fallout. According to CME Group’s FedWatch tool, the markets now expect a rate reduction in December. By January, odds will have risen to 77%. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Grant said that gold could be between $4,200 to $4,300 an ounce at the end of this year. $5,000/oz is still a realistic goal for the first quarter next year. The U.S. Senate moved ahead on Sunday on a bill aimed at reopening federal government and ending a shutdown that has now lasted 40 days. In a note, Ole Hansen said that a reopening of the market would bring back data and revive expectations for December rate cuts, but it also shifted the focus to the deteriorating fiscal outlook in the United States. Palladium rose 3.1% to 1,422.79. Platinum rose 2.4% at $1,582.50. (Reporting and editing by Will Dunham, Alan Barona and Noel John in Bengaluru)
-
Buffett supports Abel, the CEO-designate; to accelerate donations
Warren Buffett endorsed Greg Abel on Monday, who will succeed him as Berkshire Hathaway chief executive in January. He also said that he would continue to hold a large number of Berkshire Hathaway shares to reassure Berkshire shareholders about the transition. Buffett said Abel "more than exceeded" his expectations, when he initially thought 63-year old Abel was CEO material. Buffett wrote, "I cannot think of anyone else I would choose to manage your and my savings, including a CEO, management consultant, academic, or government official." Buffett will remain Berkshire chairman. Buffett said that he would increase his charitable contributions to the family foundations headed by his daughter Susie and his sons Howard and Peter. He added, however, that this "in no manner reflects a change in my view about Berkshire’s prospects." Buffett donated Berkshire Stock worth more than $1.3 Billion, or the equivalent of 1,800 Class-A shares, to four foundations headed by his children. The trustees will also supervise a charitable trust which will hold nearly all the remaining Buffett wealth when he passes away. If they are unable to serve, potential successor trustees will be named.
-
Nigeria's anti-graft agency has issued an arrest warrant for former oil minister Sylva on fraud charges
Nigeria's anticorruption agency announced on Monday that a warrant had been issued to arrest former Petroleum Minister Timipre Slva for allegations of conspiracy and dishonestly converting $14.86million. In a press release, the Economic and Financial Crimes Commission stated that the funds were part an investment made by the Nigerian Content Development and Monitoring Board in Atlantic International Refinery and Petrochemical Ltd to fund a refinery. Anyone with information about Sylva’s location is asked to contact the company’s offices across the country or to report to their nearest police station. Sylva was the former Petroleum Minister of Muhammadu Buhari from 2019 to 2023. The EFCC said that on November 6, a Federal High Court in Lagos had issued an arrest warrant for Sylva, granting it the authority to hold him for questioning. Sylva, the former governor of Bayelsa State, was not available for immediate comment. Justice D.I. Dipeolu instructed law enforcement agencies in order to help bring Sylva to the commission to "answer to the criminal offense he is accused of having committed", according the the court ruling. (Reporting and writing by Tife owolabi, Chijioke ohuocha, Editing by Jan Harvey).
-
Stocks and US Treasury yields increase on the hope of a reopening US government
MSCI's global equity index rose on Monday, while government bond yields increased on bets the U.S. shutdown would soon end. This will allow the release of official economic data to resume. On Sunday, the U.S. Senate advanced a measure that would end the shutdown. The shutdown is now in its fourth day and has caused federal workers to be unable to work, food aid delays, air travel problems, and the halting of economic data released by the government. Kevin Hassett, White House economist, had said earlier that day in an interview that the fourth-quarter Gross Domestic Product could be negative if there was a shutdown. The House of Representatives must approve the bill if the Senate passes it. This would fund the federal government until the end of January and include three appropriations bills for the entire year. S&P 500 ended slightly higher Friday, on the back of signs of progress from Washington. The S&P 500 had fallen earlier in the morning following a report that U.S. Consumer Sentiment slumped to an almost 3-1/2 year low due to fears about the economic fallout. Robert Pavlik said that there is a greater willingness to accept additional risk, because the possibility of reopening the government this week has increased. Right now, it's more of a relief rally. Pavlik stated that investors are concerned about anecdotal evidence "people staying at home and not spending much", and they are eager for the return of official economic reports to provide "hard evidence." He said that investors were increasingly focused on valuations. As of 12:37 pm on Wall Street The Dow Jones Industrial Average The rise in the 147.51 point 47,134.61 The S&P 500 is a measure of the S&P 500 index. Rose 71.35 point 6,800.15 The Nasdaq Composite Index Rose 405.28 points 23,409.82 MSCI's global stock index .MIWD00000PUS The rise was 10.74 points 1 002,06 yen The pan-European STOXX® 600 index is a .STOXX Index gained 1.4%. The non-government data released last week stoked concerns about a weakening U.S. labour market. However, Federal Reserve officials have reiterated that they prefer to be cautious with further rate reductions. According to CME Group’s FedWatch tool, traders are pricing in an approximately 63% chance that the central banks will reduce rates by 25 basis point next month. Fed Governor Stephen Miran stated Monday that a rate cut of 50 basis points would be appropriate in December. He noted that the inflation rate is declining while the unemployment rate has been rising. St. Louis Federal Reserve president Alberto Musalem, however, said that the Fed should tread carefully when it comes to further rate cuts, as inflation is close to 3%, compared to the Fed's goal of 2%, and the unemployment rate is rising. U.S. Treasury Prices fell and yields increased as investors preferred riskier assets in anticipation of an end to government shutdown. The yield on benchmark U.S. 10 year notes US10YT=RR The underlying rate of inflation rose by 1.9 basis points, to From % Late on % On Friday, t The 30-year bond US30YT=RR >> Yield The 0.7 basis point rise to 4.7083 The 2-year Note US2YT=RR The yield is a measure of the Fed's interest rate expectations. The basis point increase was 3.4 basis points. From % Risk-sensitive currencies The Australian dollar, for example, rose against the U.S. dollar, as the risk sentiment was boosted following signs that the U.S. Government is getting closer to reopening. The Australian Dollar Strengthened 0.55% The dollar rose 0.33% against the Japanese yen to 153.91. Safe-haven The dollar index rose to its highest level since two weeks, as the weak U.S. economy data encouraged rate cuts and a weaker dollar provided support. Spot gold The rise in 2.42% 4,095.42 An ounce. U.S. Gold Futures The price of roses 2.39% 4,095.00 One ounce. Investors assessed the reopening of the U.S. Government and concerns about oversupply in the crude oil market. U.S. crude The price of the e-book rose by 0.05%. A barrel of Brent Roses Per barrel Up 0.13% On the day. (Reporting and editing by Kim Coghill and Dhara Ranasinghe)
-
Gold reaches a two-week high as weak economic data reinforces rate cuts
Gold prices rose more than 2% Monday, reaching a new two-week-high as weak economic data from the United States fueled expectations that the Federal Reserve would cut interest rates. This boosted demand for this non-yielding investment. As of 11:43 am, spot gold rose 2.3% to $4.090.96 an ounce. ET (1643 GMT), after reaching its highest level in the earlier session. U.S. Gold Futures for December Delivery rose 2.2% to $4099.20 an ounce. The market is now more dovish about the Fed's expectations after some weak data from last week. "We could still see a rate cut in December," said Peter Grant. He is vice president and senior strategist for metals at Zaner Metals. Last week, data showed that the U.S. economy lost jobs in October. These losses were in the retail and government sectors. Data on Friday also showed that U.S. consumer confidence dropped in early November, as consumers worried about economic fallout. According to CME Group’s FedWatch tool, the markets now expect a rate reduction in December. By January, odds will have risen to approximately 80%. Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty. Grant said that gold could be priced between $4,200-$4,300/oz at the end of this year. $5,000/oz is still a realistic goal for the first quarter next year. The U.S. Senate moved forward with a bill on Sunday to reopen the federal government, ending a 40-day shut down. In a note, Ole Hansen said that a reopening of the market would bring back data and revive expectations for December rate cuts, but it is more important to shift the focus on a deteriorating fiscal outlook in the United States. Palladium rose 2.2% to $1.411.33 and platinum increased 1.5% to 1,568.41. (Reporting from Noel John in Bengaluru and Pablo Sinha; editing by Will Dunham).
-
US Energy Secretary says nuclear power will be the biggest user of loan office
The U.S. Energy secretary Chris Wright stated on Monday that the Department of Energy Loan Programs Office would be used most for nuclear power plants. LPO offers hundreds of billions in funding aid including loan guarantees to projects that are unable to obtain bank loans. During the first term of President Donald Trump in the White House he only used the LPO to finance reactors at Vogtle Nuclear Power Plant in Georgia. Wright said at a conference for the American Nuclear Society that "by far, the most important use of these dollars will be to build the first nuclear power plants." There are currently no commercial nuclear reactors in the United States, although several plan to reverse their permanent shut down status and open up again. Other plans include building new large and smaller reactors. Wright said that the electricity demand for artificial intelligence and data centres will generate billions of dollars in equity capital from "very reliable providers." Wright stated that the low-cost loans from the Loan Programs Office will match this financing "three to one or even four to one." (Reporting and editing by Nick Zieminski, Paul Simao, and Timothy Gardner)
Asian stocks climb on Wall Street lead; yuan, euro droop
Asian stocks rose on Tuesday led by an exceeding tech sector following record highs on Wall Street overnight, while the dollar hovered near a sixweek low to the yen as traders weighed the outlook for rates of interest in the United States and Japan.
Financiers were likewise keeping track of the political turmoil in France as the federal government there teetered on the verge of collapse, leaving the euro suffering near a one-week low.
The Chinese yuan was likewise facing its own obstacles from the growing threat of more U.S. tariffs on China, pushing it down to a 13-month trough.
Japan's tech-heavy Nikkei jumped 1.6% since 0200 GMT, and South Korea's KOSPI advanced 1.7%. Taiwanese shares got 1.1%.
Australia's stocks criteria rose 0.7% and reached a. fresh all-time high.
However, Chinese stocks were under pressure, with Hong. Kong's Hang Seng edging slightly lower and mainland blue. chips falling 0.3%.
MSCI's broadest index of Asia-Pacific shares. included 0.7%.
Both S&P 500 and Nasdaq futures were flat. after the cash indexes restored their record peaks on Monday,. helped by strong gains for most of the so-called Magnificent 7. state-of-the-art stocks, including a nearly 19% rise for Facebook. parent Meta Platforms and a 12% jump for Tesla .
Equity hedges have actually been unwound, which talks to a market. positive of a grind greater into year-end, stated Chris Weston,. head of research study at Pepperstone, referring to the bull run for. U.S. equities, and especially the MAG7.
Microsoft and Meta would be my choices that lead us greater. from here.
Microsoft advanced 7.5% over night. The other MAG7. stocks are Google parent Alphabet, Amazon,. Apple and Nvidia.
In currencies, the dollar added 0.2% to 149.87 yen. , but stayed not far from Monday's low of 149.09, the. weakest level given that Oct. 21.
The dollar received some support overnight from. better-than-expected U.S. manufacturing information, which also revealed. a mitigation in price boosts. Nevertheless, the greenback came. under restored pressure as Federal Reserve Guv Christopher. Waller stated he is favoring a rate cut on Dec. 18.
Traders presently see about a 75% opportunity of a quarter-point. cut at this month's Fed meeting, up from 66% a day earlier and. 52% a week earlier, according to CME's FedWatch Tool.
The two-year U.S. Treasury yield dipped to. 4.1776% on Tuesday, heading back towards the four-week low of. 4.1550% from Friday.
Shocks task openings - a favored gauge of Fed authorities - is. due later on Tuesday, ahead of the necessary month-to-month. payrolls figures on Friday.
The yen, on the other hand, has actually been supported by rising speculation. that the Bank of Japan will raise rates by a quarter point on. Dec. 19, with traders currently putting the odds at around 58%.
Supplying USD/JPY remains below the 151/152 resistance. zone, the risks are for a deeper decrease towards 145.00, which. might show too conservative if the BOJ hikes rates and the Fed. cut rates, said Tony Sycamore, an analyst at IG.
The euro eased 0.1% to $1.0488, after dropping. about 0.7% overnight and hitting lows of $1.046125.
The French federal government appeared all however particular to collapse. later on this week after far-right and left-wing parties submitted. no-confidence movements on Monday against Prime Minister Michel. Barnier.
Sterling was stable at $1.2654.
The yuan sank as low as 7.3145 per dollar in overseas. trading, the weakest considering that November of last year.
U.S. President-elect Donald Trump demanded at the weekend. that BRICS member countries - which include China - devote to. not developing a new currency or supporting another currency to. change the dollar or face 100% tariffs.
Less than a week previously, he had threatened China with an. additional 10% levy on top of a campaign pledge of tariffs in. excess of 60% on Chinese products.
Gold stayed stuck around $2,635, following its. retreat from an all-time peak of $2,790.15 on Oct. 1.
Oil prices were constant near two-week lows. Brent crude. futures alleviated 3 cents to $71.80 per barrel, and U.S. West Texas Intermediate crude declined 5 cents to $68.06. per barrel.
(source: Reuters)