Latest news with #CMEFedwatch
Mint
4 days ago
- Business
- Mint
Safe-haven gold touches 2-week peak on trade tensions, rate cut hopes
Market sees over 91% rate cut chance in Sept - CME Fedwatch (Updates prices for US mid-session trading) Aug 7 (Reuters) - Gold rose to an over two-week high on Thursday, buoyed by safe haven demand after U.S. President Donald Trump's tariffs went into effect and U.S. jobs data added to rate-cut expectations. Spot gold gained 0.5% to $3,384.80 per ounce as of 1127 a.m. ET (15:27 GMT), after hitting its highest level since July 23 earlier in the session. U.S. gold futures added 0.4% to $3,446.70. "Ongoing trade tensions, and heightened geopolitical tensions continue to underpin the market with the safe-haven interest," said Peter Grant, vice president and senior metals strategist at Zaner Metals. Trump's higher tariffs on imports from a slew of countries came into effect on Thursday, leaving some trade partners like Switzerland, Brazil and India scrambling to reach a better deal. Meanwhile, the number of Americans filing new applications for unemployment benefits ticked up to a one-month high last week, hinting at some easing in the U.S. labor market. The data is supportive of rising expectations for Fed rate cuts, said Grant, adding "if the (U.S.) data continue to show weakness, we could see more dovish expectations develop and that is generally supportive to gold as well." Gold, used as a store of value during economic and geopolitical uncertainty, also tends to thrive in a low-interest rate environment. Last week, weaker U.S. payrolls data boosted rate cut bets, with the market now pricing in an over 91% chance of a 25-basis-point rate cut next month, as per CME Group's FedWatch Tool. Three Fed officials sounded the alarm on a weakening U.S. labour market, with Minneapolis Fed President Neel Kashkari on Wednesday saying two quarter-percentage-point rate cuts by year-end is reasonable. Spot silver was up 0.9% at $38.18 per ounce, its highest since July 25, palladium added 1.5% to $1,149.25, while platinum was steady at $1,333.51. (Reporting by Sarah Qureshi in Bengaluru; Editing by Shailesh Kuber and Vijay Kishore)
Business Recorder
6 days ago
- Business
- Business Recorder
European shares rise amid earnings flurry
European shares rose on Tuesday, with a slate of earnings and data on watch while investor sentiment improved on hopes of the Federal Reserve cutting interest rates in its September policy meeting. The pan-European STOXX 600 index edged up 0.4%, as of 0710 GMT, with most regional bourses also trading in the green. Global markets were positive after odds for a Fed September rate cut rose to almost 94%, according to CME Fedwatch, following a soft U.S. nonfarm payrolls data last week. Meanwhile, earnings continued in full swing, with Fresnillo ranking among top gainers, jumping 6.3% after the miner reported positive first-half results. Smith+Nephew led gains, jumping 12% after the British medical products maker posted a 11.2% jump in first-half profit and announced a new $500 million share buyback for the remainder of the year. Diageo gained 5.6% after the world's biggest spirits maker forecasted 2026 sales growth to be similar to this year, and increased its cost-savings target. Hugo Boss was up 3% after cost-cutting measures led to the German fashion brand reporting a better-than-expected operating profit for the quarter. BP added 1.4% after the oil giant said it would review assets and costs in order to improve profitability with second-quarter profit beating expectations.
Business Recorder
7 days ago
- Business
- Business Recorder
Miners and banks drive Australian shares higher
Australian shares climbed on Tuesday, driven by gains in miners and banks, while investors globally firmed their bets for a U.S. rate cut in September after last week's soft jobs data. The S&P/ASX 200 index rose 0.9% to 8,741.60 by 0037 GMT, trading near its record high of 8,776.40 hit on July 18. Data released on Friday showed that U.S. employment growth was weaker than expected in July while the nonfarm payrolls count for the previous two months was revised down, raising fears of slowing growth in the world's largest economy. The weaker numbers bolstered expectations for a Federal Reserve interest rate cut in September, with the CME Fedwatch tool showing a more than 94% probability. In Sydney, index heavyweight miners gained 1.4% after iron ore prices strengthened overnight, helped by firm near-term demand in top consumer China. Mining giants Rio Tinto and BHP gained 1.1% and 1%, respectively. Gold stocks jumped 2.2%, with Northern Star Resources rising 3.1%. Banks advanced 0.8%, with the 'Big Four' banks gaining between 0.4% and 1.2%. The Reserve Bank of Australia is set to announce its next cash rate decision on August 12, and investors are pricing in a 51% chance of an interest rate cut, according to the RBA Watch tool. In July, the central bank left rates steady at 3.85%. Technology stocks tracked their U.S. peers higher and were last up 1.6%. WiseTech Global climbed 1.4%. Among individual stocks, TPG Telecom fell 2.5% as the company cut its annual pro-forma earnings forecast. Earlier in the day, it rallied as much as 4.2% to its highest since August 2022. In New Zealand, the benchmark S&P/NZX 50 index rose 0.6% to 12,764.82, ahead of the second-quarter jobs report due on Wednesday. The Reserve Bank of New Zealand policy decision is due on August 20 and investors have priced in an 80% chance of a 25-basis-point rate cut.
Free Malaysia Today
7 days ago
- Business
- Free Malaysia Today
Bad news is good news for markets craving Fed ‘rocket fuel'
South Korea's Kospi stood out with a 1% jump, while Vietnamese shares traded near a record high. (EPA Images pic) LONDON : Markets are trying hard to see the bright side of bad news in the US, anticipating dour data will trigger the economic 'rocket fuel' of Federal Reserve (Fed) interest rate cuts so craved by President Donald Trump. Odds for a September cut now stand at about 94%, CME Fedwatch showed, from 63% last week. Market participants see at least two quarter-point cuts by year-end. The odds shot up after disappointing non-farm payrolls data on Friday, causing equity markets to swoon and Trump to shoot the messenger, firing the head of labour statistics and promising to replace her within days. Institutional independence is turning into a short bet in the US. The early resignation of Fed governor Adriana Kugler will let Trump pick her successor, adding to concerns about partisan loyalty invading the staid world of central bank policy. Asian markets followed gains on Wall Street, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.4%. South Korea's Kospi stood out with a 1% jump, while Vietnamese shares traded near a record high. Data today from the region's two biggest economies showed resilience in their service sectors in the face of headwind from Trump's chaotic introduction of tariffs on goods from trading partners. In Japan, the S&P Global final services purchasing managers' index (PMI) climbed to 53.6 in July from 51.7 in June for the strongest expansion since February. China's services activity last month expanded at its fastest pace in more than a year. A slew of PMIs for July are due for release today across Europe. In earnings, the second-quarter US results season is winding down, but investors are still looking forward to reports this week from big names including Walt Disney and Caterpillar. Equity futures are pointing to gains in European and US. markets, with the pan-region Euro Stoxx 50 futures up 0.13% and the S&P 500 e-minis rising 0.14%. Key developments that could influence markets today include France's industrial output for June; July purchasing managers' indexes in France, Germany, the euro zone, and Britain; European earnings (Diageo, BP, Deutsche Post, and Telecom Italia); and US earnings (Caterpillar, Pfizer, Yum! Brands, Marriott International, and Fox Corp).
Yahoo
7 days ago
- Business
- Yahoo
Morning bid: Bad news is good news for markets craving Fed 'rocket fuel'
A look at the day ahead in European and global markets from Rocky Swift Markets are trying hard to see the bright side of bad news in the United States, anticipating dour data will trigger the economic "rocket fuel" of Federal Reserve interest rate cuts so craved by President Donald Trump. Odds for a September cut now stand at about 94%, CME Fedwatch showed, from 63% last week. Market participants see at least two quarter-point cuts by year-end. The odds shot up after disappointing non-farm payrolls data on Friday, causing equity markets to swoon and Trump to shoot the messenger, firing the head of labour statistics and promising to replace her within days. Institutional independence is turning into a short bet in the U.S. The early resignation of Fed Governor Adriana Kugler will let Trump pick her successor, adding to concerns about partisan loyalty invading the staid world of central bank policy. Asian markets followed gains on Wall Street, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.4%. South Korea's Kospi stood out with a 1% jump, while Vietnamese shares traded near a record high. Data today from the region's two biggest economies showed resilience in their service sectors in the face of headwind from Trump's chaotic introduction of tariffs on goods from trading partners. In Japan, the S&P Global final services purchasing managers' index (PMI) climbed to 53.6 in July from 51.7 in June for the strongest expansion since February. China's services activity last month expanded at its fastest pace in more than a year. A slew of PMIs for July are due for release today across Europe. In earnings, the second-quarter U.S. results season is winding down, but investors are still looking forward to reports this week from big names including Walt Disney and Caterpillar. Equity futures are pointing to gains in European and U.S. markets, with the pan-region Euro Stoxx 50 futures up 0.13% and the S&P 500 e-minis rising 0.14%. Key developments that could influence markets on Tuesday: * France industrial output for June * July purchasing managers indexes in France, Germany, eurozone, Britain * Europe earnings: Diageo, BP, Deutsche Post, Telecom Italia * U.S. earnings: Caterpillar, Pfizer, Yum! Brands, MarriottInternational, Fox Corp Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. (By Rocky Swift; Editing by Christopher Cushing) Sign in to access your portfolio
