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Yahoo
12 hours ago
- Business
- Yahoo
Dollar stumbles as optimism from fragile Israel-Iran truce lingers
By Rae Wee SINGAPORE (Reuters) -The dollar struggled to regain lost ground on Wednesday as investors who have been starved of good news latched onto optimism over a fragile truce between Israel and Iran as a reason to take on more risk. Markets were jubilant and an index of global shares hit a record high overnight as a shaky ceasefire brokered by U.S. President Donald Trump took hold between Iran and Israel. The two nations signalled that the air war between them had ended, at least for now, after Trump publicly scolded them for violating a ceasefire he announced. Investors heavily sold the dollar in the wake of the news, after pouring into the safe-haven currency during the 12 days of war between Israel and Iran that also saw the U.S. attack Iran's uranium-enrichment facilities. Currency moves were more subdued in early Asia trade on Wednesday though the euro remained perched near its highest since October 2021 at $1.1621, having hit that milestone in the previous session. Sterling eased 0.02% to $1.3615 but was similarly not far from Tuesday's peak of $1.3648, which marked its strongest level since January 2022. The risk-sensitive Australian dollar, which rallied sharply in the previous session, last traded 0.02% higher at $0.6492. While the truce between Israel and Iran appeared fragile, investors for now seemed to welcome any reprieve. "The market is complacent about some of the downside risks," said Joseph Capurso, head of international and sustainable economics at Commonwealth Bank of Australia. "The thing I get is this issue is not over, which means it could come back to be a driver of commodity prices and currency markets again." In other currencies, the New Zealand dollar rose 0.13% to $0.6015, while the yen steadied at 144.96 per dollar. Some Bank of Japan policymakers called for keeping interest rates steady for the time being due to uncertainty over the impact of U.S. tariffs on Japan's economy, a summary of opinions at the bank's June policy meeting showed on Wednesday. The Swiss franc, which scaled a 10-1/2-year high on Tuesday, steadied at 0.8049 per dollar. Against a basket of currencies, the dollar eased slightly to 97.91. While Federal Reserve Chair Jerome Powell stuck to his cautious approach and reiterated that the central bank was in no rush to ease rates at his semi-annual testimony to Congress on Tuesday, markets continue to price in a roughly 18% chance that the Fed could cut in July, according to the CME FedWatch tool. "We think economic growth is slowing and the improvement in services and shelter inflation will push back against tariff rises, allowing cuts to resume in September," ANZ analysts said in a note. A raft of weaker-than-expected U.S. economic data in recent weeks have bolstered expectations of Fed cuts this year, with futures pointing to nearly 60 basis points worth of easing by December. Data on Tuesday showed U.S. consumer confidence unexpectedly deteriorated in June as households grew increasingly worried about job availability, another indication that labour market conditions were softening. The two-year U.S. Treasury yield, which typically reflects near-term rate expectations, fell to a 1-1/2-month low of 3.7870% on Wednesday. The benchmark 10-year yield was little changed at 4.3043%. 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
Yahoo
09-02-2025
- Business
- Yahoo
3 essential factors for investors to consider when aiming for passive income success
Seldom a week goes by without someone asking me how to earn passive income through investing. Since the rise of remote working during Covid, building wealth through passive income's become a key goal of many individuals. The problem is that many wealth-building strategies aim to satiate the common desire for a rapid solution. When investing for income, the reality's usually a far cry from the get-rich-quick schemes touted by social media influencers. If the thought of a long, drawn-out process is off-putting, consider this. When I started investing at 35, I thought I was too late. It took dedication but less than a decade later, I was well on my way towards earning a second income. If I'd hoped to see results within a year, I'd likely have given up. Patience and dedication are key factors to consider, but they're not the only ones. A key part of risk management is developing an appropriate asset allocation strategy. This essentially boils down to deciding how much risk is tolerable. An investor who can survive on half their salary could potentially allocate the other 50% to investments. The decision then is how to divide that capital between bonds, commodities and stocks. A 60/40 allocation (60% stocks, 40% bonds) is a popular option. Others may choose 30% commodities, 30% bonds and 40% stocks. Cash and bonds are considered low risk/low return, while stocks and commodities have higher risk/return potential. An investor should always aim to achieve the perfect risk/reward balance based on their financial circumstances. Picking the right stocks at the right time can make or break a portfolio. With the sheer amount of options available, it can be a daunting process. It may seem obvious to pick whatever big tech stocks are trending at the time but this method seldom works long term. A truly diverse portfolio should also include some companies with a 20-30-year projection of stable growth. Think large, well-established and closely tied to the economic prosperity of the country. One example is Barclays (LSE: BARC). Unlike HSBC, Barclays is more deeply rooted in the UK and less likely to move headquarters abroad. As the second-largest bank in the UK, it's very well-established and invested in the country's economic progress. It's also been on a tear lately, with the price up 111% in the past year. Despite the rapid growth, it doesn't appear overvalued yet, with a forward price-to-earnings (P/E) ratio of only 7.3. This follows two years of slow growth during which high inflation subdued economic activity. With the first interest rate cut of 2025 done (and perhaps more on the horizon), the hope is that inflation will drop further this year. Unfortunately, as a bank, it's highly sensitive to economic downturns — remember the 2008 financial crisis? Barclays crashed by over 80% during that period. There's always the risk that a similar event could send it tumbling again. That's why diversity's key, not just between stocks but also between asset classes. Commodities tend to move inversely to stocks while bonds maintain stability in most situations. I'm not looking to add more bank stocks to my portfolio right now but for investors aiming for long-term passive income, I think Barclays is a good option to consider. The post 3 essential factors for investors to consider when aiming for passive income success appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Mark Hartley has positions in HSBC Holdings. The Motley Fool UK has recommended Barclays Plc and HSBC Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
