Latest news with #ChibuikeOguh
Yahoo
2 days ago
- Business
- Yahoo
Stocks ease, US yields rise after hot US inflation data shakes confidence in Fed rate cut
By Chibuike Oguh and Naomi Rovnick NEW YORK/LONDON (Reuters) -Global stocks edged lower on Thursday, with equities on Wall Street ending flat, while U.S. Treasury yields rose after market expectations for Federal Reserve interest rate cuts were shaken by surprisingly strong inflation data. The benchmark S&P 500 eked out a fresh closing high for the third straight session, while the Dow and the Nasdaq finished little changed. The Dow Jones Industrial Average eased 0.02%, the S&P 500 rose 0.03% and the Nasdaq Composite dipped 0.01%. "We've had a good ride for the last few trading days," said Genter Capital Management CEO Dan Genter. "The PPI (Producer Price Index) number was not something that was going to rally the market further, but it also wasn't something that was going to particularly scare the market." U.S. producer prices rose 0.9% in July, the Labor Department reported, surpassing consensus forecasts for a 0.2% gain. Investors have been watching for signs of inflation pressures from U.S. President Donald Trump's tariffs. European stocks held gains from earlier in the day and were last 0.55% higher. MSCI's gauge of stocks across the globe fell 0.12% to 951.91, taking a breather a day after hitting an all-time high. "I think the market is falling into an acceptance that the overall economy is slowing ... and having some confirmation with the inflation numbers puts us in a good place for at least two 25-basis-point cuts that this market is going to need for support," Genter added. U.S. Treasury yields leaped after the inflation data as expectations for jumbo Fed rate cuts faded. The two-year note yield was last up 4.5 basis points at 3.732%. The benchmark U.S. 10-year note yield rose 4.9 basis points to 4.289%. Money markets showed traders still almost unanimously expect the Fed to cut borrowing costs next month, although some traders have lowered their bets. Markets are predicting a 92.5% chance that the Fed will cut rates by 25 basis points in September, down slightly from 94.3% on Wednesday but up from nearly 59% a month ago, according to the CME FedWatch tool. "We have been too anxious to draw a conclusion that the economy is fine; it's not overheated," said Peter Andersen, founder of Andersen Capital Management in Boston. "But this wholesale data does show that perhaps there is some inflation working, and we shouldn't be so quick to conclude we need to cut interest rates." "It reinforces the case that the Fed might say we still don't have a clear picture yet, based on the tariffs in the employment picture to take any action, and I would expect that they would tend to be neutral and make no change in September as opposed to the majority of opinions out there," Andersen said. About 70% of global investors expect U.S. stagflation, with growth slowing as consumer price rises accelerate, to become the dominant market narrative within three months, a Bank of America survey found this week. The dollar rose against major peers after falling in the prior session. It strengthened 0.25% to 147.75 against the Japanese yen and was up 0.39% at 0.808 against the Swiss franc. The euro fell 0.49% to $1.1647. The dollar index tracking the greenback against peers, including the euro and Japan's yen edged 0.5% higher. Trump on Wednesday threatened "severe consequences" if Russian leader Vladimir Putin did not agree to peace in Ukraine at a Friday meeting and has also floated the idea of a second summit that would include Ukrainian President Volodymyr Zelenskiy. Brent crude, the global oil benchmark, rose from almost a two-month low to settle up 1.84% to $66.84 a barrel and U.S. crude added 2.09% to settle at $63.96. Spot gold fell 0.57% to $3,335.34 an ounce. U.S. gold futures for December delivery settled 0.7% lower at $3,383.20. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Mint
27-06-2025
- Business
- Mint
Shares rally on China-US trade hopes, dollar trades at multi-year lows
(Updates with U.S. markets open, adds New York dateline, fresh analyst quote) S&P 500 and Nasdaq reach record highs European shares rise on easing US-China trade tension Dollar holds near lowest levels in more than three years Oil prices gain, gold slips By Chibuike Oguh and Elizabeth Howcroft NEW YORK/PARIS, June 27 (Reuters) - Global shares reached a record high on Friday, helped by market optimism over signs of progress in U.S.-China trade talks, while the dollar held close to its lowest levels in more than three years. The benchmark S&P 500 index and Nasdaq hit all-time highs, lifted partly by gains in megacap growth stocks including Nvidia and Amazon. The S&P 500 index and Nasdaq are headed for a weekly gain and are up about 5% this year overall, following a volatile first half of the year, dominated by U.S. President Donald Trump's tariff announcement on April 2, which sent stocks plunging. The pan-European STOXX 600 index was up 0.66% on the day, set for a weekly gain. The MSCI World Equity index touched a record high and was set for a weekly gain of 3.2%. London's FTSE 100 rose 0.35%. Asian shares hit their highest in more than three years in early trading. "It's a continuation of this monster rally since early April," said James St. Aubin, chief investment officer at Ocean Park Asset Management in Santa Monica, California. "It's been quite an improbable comeback and it continues, assuming that the tariff controversy is no longer a major issue in the psyche of the market." Investors saw a trade agreement between the United States and China on Thursday on how to expedite rare earth shipments to the United States as a positive sign, amid efforts to end the tariff war between the world's two biggest economies. Trump has set July 9 as the deadline for the European Union and other countries to reach a deal to reduce tariffs. Traders took confidence too from a ceasefire between Iran and Israel and markets stepped up bets for U.S. rate cuts amid the possibility of Trump announcing a new, more dovish Federal Reserve chair ahead of the expiration of Jerome Powell's term next year. Data showed U.S. consumer spending unexpectedly fell by 0.1% in May for the second time this year, while monthly inflation maintained a moderate pace of increase. "We're starting to see earnings estimates for the next 12 months on the rise again after taking a little bit of a dip and that's what the market is buying into," St. Aubin added. The dollar remained on the backfoot, hovering near its lowest level in 3-1/2 years against the euro and sterling. The dollar weakened 0.16% to 0.799 against the Swiss franc but was up 0.18% to 144.63 against the Japanese yen . The euro was at $1.1708, getting a lift after data showed French consumer prices rose more than expected in June. The dollar index was down 0.1% on the day at 97.269, holding near its lowest in more than three years. The dollar is having its worst start to a year since the era of free-floating currencies began in the early 1970s. Traders have stepped up their bets on U.S. rate cuts, and are now pricing in 64 basis points (bps) of easing this year versus 46 bps expected on Friday. The yield on benchmark U.S. 10-year notes rose 1.2 basis points to 4.265%. German 30-year government bond yields were on track for their biggest weekly increase in nearly four months after rising this week on expectations of increased borrowing by Germany's government. Oil prices meanwhile rose but were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate. Brent crude futures rose 0.66% to $68.18 a barrel while U.S. West Texas Intermediate crude was up by 1% to $65.91 . Spot gold fell 1.72% to $3,270.50 an ounce. (Reporting by Chibuike Oguh in New York and Elizabeth Howcroft in Paris; Additional reporting by Dhara Ranasinghe; Editing by Kim Coghill and Emelia Sithole-Matarise)
Yahoo
13-05-2025
- Automotive
- Yahoo
Hertz shares slump after quarterly results miss Wall Street estimates
By Chibuike Oguh NEW YORK (Reuters) -Shares of Hertz Global fell more than 20% on Tuesday after the rental car company's results missed Wall Street expectations due to reduced vehicle fleet and a moderation in bookings. Estero, Florida-based Hertz reported a nearly 13% drop in revenue on Monday to $1.81 billion and a narrower adjusted net loss of $1.12 per share, down 13% from a year ago. Analysts had expected Hertz to report revenue of $2 billion and adjusted net loss per share of 97 cents. Hertz is on track to snap four straight days of gains after falling as low as $5.51, down nearly 21% in early Tuesday trading. It has since trimmed those losses and was off 13.5% at $5.99, but is up nearly 61% year-to-date. Hertz said the drop in its revenue was primarily due to reduced fleet capacity, which is down 8% year-on-year. The company has seen a moderation in demand for bookings from corporate, government and U.S. inbound customers. Last month, hedge fund billionaire Bill Ackman boosted his stake in Hertz to nearly 20% through his investment management company Pershing Square, sending its shares up 56%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Dollar falls, euro gains after Merz elected German chancellor
By Chibuike Oguh NEW YORK (Reuters) - The dollar fell broadly on Tuesday on worries that U.S. President Donald Trump's touted trade deals have yet to materialize, while the euro extended gains after the German parliament elected conservative leader Friedrich Merz as chancellor. Investors are waiting for details on trade deals the Trump administration has said it is negotiating with other countries, including China. Trump indicated on Sunday that some deals would be announced this week. "The market is getting nervous that we're starting to eat away at the schedule since the 90-day tariff reprieve without anything meaningful being announced," said Eugene Epstein, head of structuring for North America at Moneycorp. "There's a lot of good sentiment but because of a distinct lack of formal substance that I've seen, I think the market is starting to get uneasy again." The dollar was last down 0.86% at 142.445 Japanese yen . The Taiwanese dollar pared gains following a record rally against the greenback amid market disquiet over Trump's tariffs. The currency was last down 2.6% at 29.931 per dollar. The Canadian dollar strengthened after Prime Minister Mark Carney bluntly told Trump during a White House visit on Tuesday that Canada would never be for sale. The Canadian dollar strengthened 0.39% versus the greenback to C$1.38 per dollar. The euro extended gains after Merz secured the votes needed to become German chancellor following a humiliating and unprecedented defeat on the first attempt. The single currency was last up 0.50% to $1.1371. The Commerce Department reported on Tuesday the U.S. trade deficit widened 14% to a record $140.5 billion in March as businesses boosted imports ahead of Trump's tariffs. Against the Swiss franc, the dollar gave up earlier gains to edge down 0.09% to 0.82145 franc. Swiss National Bank Chairman Martin Schlegel said the SNB is ready to intervene in currency markets and cut interest rates even below zero to prevent inflation falling below its price stability target. Markets are focused on Wednesday's Federal Reserve policy meeting, in which the U.S. central bank is expected to hold rates steady. Fed Chairman Jerome Powell is unlikely to provide clear guidance on how the central bank plans to respond to U.S. import tariffs, Macquarie analysts led by Thierry Wizman wrote in an investor note. "If traders wish to believe that the Fed will come to the rescue of the world tomorrow and assuage the recent rise in policy uncertainty and political uncertainty with a signal of overt 'dovishness,' they should think again," the analysts wrote.
Yahoo
12-04-2025
- Business
- Yahoo
Dollar slides with investor confidence shaken in safety of US assets
By Chibuike Oguh and Lucy Raitano NEW YORK/LONDON (Reuters) -The dollar continued to slide against major currencies on Friday as the back-and-forth over import tariffs shook investor confidence in the safety of the greenback, sending it to its lowest level in a decade against the Swiss franc and a three-year low versus the euro. China increased its tariffs on U.S. imports to 125% from 84% on Friday, retaliating against U.S. President Donald Trump's decision to hike duties on Chinese goods to a total of 145% after pausing many of his latest tariff hikes on most countries. The dollar has been hit hard by a global selloff that spread to stocks and even safe-haven U.S. Treasuries. The yields on benchmark 10-year notes are on course for their biggest weekly jump since 2001. [MKTS/GLOB] Brad Bechtel, global head of FX at Jefferies, said dollar weakness is being driven partly by the view that U.S. economic exceptionalism is waning - with the potential of a looming recession - and a switch from the dollar as a safe-haven asset to the yen and Swiss franc. "There's a great rotation, which is basically foreign investors diversifying away from the U.S. into other regions such as the euro zone. And for those foreign investors still involved in the U.S., they're realizing they need to currency hedge their assets. There's a scramble to do so, which is putting additional pressure on the dollar." Data on Friday showed U.S. consumer sentiment deteriorated sharply in April while 12-month inflation expectations surged to the highest level since 1981 amid unease over the trade tensions. On Wall Street, the benchmark S&P 500, Dow Jones Industrial Average and the Nasdaq Composite indices edged higher after losing ground earlier in the session. They were set to end higher in a week marked by topsy-turvy developments in the global trade war. The dollar was down 0.9% at 0.81650 against the Swiss franc, extending losses in the previous session when it plunged to its lowest level since January 2015. It is on track for its biggest weekly drop since November 2022. The greenback was down 0.51% at 144.05 yen after hitting its lowest level since September 2024. It is set for its largest weekly drop since early February. Gold soared past $3,200 an ounce, hitting a fresh new high supported partly by the dollar weakness. Spot gold rose 1.75% to $3,229.46 'LOSS OF CONFIDENCE' European Central Bank President Christine Lagarde on Friday said her central bank was ready to deploy its instruments to maintain financial stability and that it had a solid track record in devising tools when required to deal with turbulence. The euro surged 1.25% to $1.134050, after hitting its highest level since February 2022. It is on track for its biggest weekly gain since early last month. The single currency also rose 0.43% against the pound in a sign of its outperformance. The pound was up 0.89% against the dollar, at $1.30825. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.56% to 99.958 - hitting its lowest mark since April 2022. It is on track for its biggest weekly drop since early last month. China's yuan fell sharply against the euro, which hit an 11-year high against the currency in the offshore market. This week, the Chinese currency fell to its weakest level on record against the dollar, both onshore and offshore, though it has since rebounded. The dollar was last down 0.45% against the offshore yuan at 7.2807. "Part of the dollar weakness in the past few weeks has been linked to worries over a recession or the Fed cutting rates, but it's kind of gone beyond that," said Win Thin, global head of markets strategy at Brown Brothers Harriman in New York. "It's more really loss of confidence and credibility in the dollar and then in U.S. policymaking. Typically in risk-off episodes, the dollar should gain as a safe haven, but it's really been the yen and Swiss franc that have been picking that up, and the dollar has been under pressure." Sign in to access your portfolio
