Latest news with #Scotiabank
CNA
32 minutes ago
- Business
- CNA
Dollar gains on euro as traders bet on less dovish Fed
NEW YORK :The dollar gained against the euro on Wednesday as traders bet that the Federal Reserve may be less likely to cut rates two times this year following an uptick in consumer prices in June, even though producer price inflation data on Wednesday was steady. U.S. producer prices were unexpectedly unchanged in June as an increase in the cost of goods because of tariffs on imports was offset by weakness in services. Tuesday's release showed U.S. consumer prices increased by the most in five months in June amid higher costs for some goods, suggesting U.S. President Donald Trump's tariffs were starting to have an impact on inflation. 'Yesterday's reaction to the inflation data was very positive for the U.S. dollar overall,' said Eric Theoret, FX strategist at Scotiabank in Toronto. 'We're seeing an extension of the month-to-date move.' Fed funds futures traders are now pricing in 44 basis points of cuts by year-end, little changed after Wednesday's data but down from around 48 basis points before Tuesday's consumer price data. The dollar is also likely benefiting from traders that have been short the currency having to exit or cover positions as it rebounds from its recent lows. 'This is a market where you've got sentiment and positioning leaning pretty hard the other way, so I think from that perspective, it's also a bit vulnerable,' said Theoret. The euro was last down 0.23 per cent on the day at $1.1572, the lowest since June 23. Against the Japanese yen, the dollar weakened 0.03 per cent to 148.81. It earlier reached 149.18 yen, the highest since April 3. Sterling fell 0.04 per cent to $1.3373 and reached $1.3361, the lowest since May 20. Investors continue to focus on tariffs ahead of an August 1 deadline when many trading partners face higher trade levies. Trump on Tuesday said the U.S. would impose a 19 per cent tariff on goods from Indonesia under a new agreement with the Southeast Asian country and more deals were coming, while offering fresh details on planned duties on pharmaceuticals. In Japan, investors are focused on a potential power shift in upper house elections this weekend that could strain already frail finances, with long-dated yields soaring to all-time highs as the vote nears. A longer-term negative for the U.S. dollar is also the likelihood that Fed Chair Jerome Powell's successor after his term ends in May could be more inclined to lower interest rates. Trump has railed against Powell for months for not easing rates and the Trump administration has also criticised cost overruns on a $2.5 billion renovation of the Fed's Washington headquarters.
Reuters
a day ago
- Business
- Reuters
Canada's annual inflation rate in June up slightly to 1.9%
OTTAWA, July 15 (Reuters) - Canada's annual inflation rate rose to 1.9% in June, meeting analysts' expectations, as increases in the price of automobiles, clothing and footwear pushed the index higher, data showed on Tuesday. The consumer price index was at 1.7% in the prior month. Statistics Canada said on a monthly basis the CPI increased 0.1%, matching analysts' forecasts. CPI has been under 2%, or the mid-point of the Bank of Canada's inflation target range, for three consecutive months. This is the last major economic indicator to be released before the Bank of Canada's rates decision later this month. The slight rise in prices across many segments, along with a strong jobs number last week, is likely to take away any incentive to cut interest rates, economists said. Money markets were betting on the odds for a rate cut at just over 10% after the data was released . The central bank will announce its monetary policy decision on July 30. "It's just the latest piece of evidence to keep the Bank of Canada on hold after 83,000 jobs (added in June) and no clarity on how fiscal policy and trade policy will evolve," said Derek Holt, vice president of Capital Market Economics at ScotiabankC. The Canadian dollar was trading stronger by 0.19% to 1.3677 against the U.S. dollar, or 73.12 U.S. cents. Yields on the government's two-year bonds were down 0.6 basis points to 2.761%. The rise in prices in June was primarily led by a 2.7% jump in durable goods such as automobiles and furniture, following a 2% rise in May on a year-on-year basis, StatsCan said. Passenger vehicle prices rose 4.1% on an annual basis in June following a 3.2% increase in May, the agency added. Inflation was further boosted by a rise in the price of clothing and footwear, which accelerated 2% annually in June after a modest 0.5% rise in May, due in part to uncertainty surrounding international trade, Statistics Canada said. U.S. consumer prices also picked up in June, likely marking the start of a long-anticipated tariff-induced increase in inflation. Canadian gasoline prices are expected to be depressed for the next 10 months after the government scrapped the consumer carbon levy on gasoline in April. On a year-over-year basis gasoline prices fell by 13.4% in June from 15.5% in May. Economists and the central bank have focused on the core measures of inflation, which excludes the impact of tax measures, to gauge price trends. One of the core measures of inflation, the CPI-median, or the centermost component of the CPI basket, edged up to 3.1% in June from 3% in the prior month. The other core measure CPI-trim, which excludes the most extreme price changes, was unchanged in June at 3% from May, StatsCan said. "The fact that core inflation is pretty much locked in at around 3% is a bit of an issue for Bank of Canada rate cut prospects," said Doug Porter, chief economist at BMO Capital Markets. Shelter prices, which account for up to 30% of the CPI basket weight and comprises mortgage and rent, rose by 2.9%, the first drop below 3% in more than four years.
Yahoo
2 days ago
- Business
- Yahoo
Scotiabank Upgrades Thermo Fisher (TMO) to Outperform, Lowers PT
Thermo Fisher Scientific Inc. (NYSE:TMO) is one of the 13 Best Large Cap Stocks to Buy Right Now. On July 11, Scotiabank upgraded its rating for Thermo Fisher Scientific Inc. (NYSE:TMO) from 'Sector Perform' to 'Outperform' while also setting a new price target of $590, down from the previous $605. The bank believes that the stock has been 'disproportionately impacted' because of healthcare and trade policy talks and changes this year. A workstation in a research lab stocked with laboratory products and services. Scotiabank expects Thermo Fisher Scientific Inc. (NYSE:TMO) to grow faster once the concerns about US healthcare policy changes go away. This growth is expected to be driven by the company's 'unparalleled commercial scale' and improved region-for-region capabilities anticipated by 2026. The firm also pointed out that Thermo Fisher Scientific Inc.'s (NYSE:TMO) leading position in innovation, operational execution, and cash flow potential as key strengths that position the company well in the life science tools industry. In this industry, Thermo Fisher Scientific Inc. (NYSE:TMO) is the largest company 'by a significant margin.' Thermo Fisher Scientific Inc. (NYSE:TMO) is a leading life science and clinical research company that supplies analytical instruments, clinical development solutions, specialty diagnostics, laboratory, pharmaceutical, and biotechnology services. While we acknowledge the potential of TMO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. 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
Globe and Mail
2 days ago
- Business
- Globe and Mail
A top pick in the hottest REIT sector
Daily roundup of research and analysis from The Globe and Mail's market strategist Scott Barlow Scotiabank analyst Himanshu Gupta went in-depth on the hottest REIT sector: senior housing, 'In the last three weeks, we reached out to 20+ retirement homes owned by CSH [Chartwell Retirement Residences] and SIA [Sienna Senior Living Inc], and posed as someone requiring a suite for their elderly grandmother! … Based on our conversations with marketing teams of various homes, we gathered 4 to 5% renewal rental spreads in 2025 (mostly similar to last year & in some cases slightly better), and very limited/targeted incentives on offer … Market rent growth is key to keep the Seniors Housing story going: We looked at previous cycle peaks of Industrial REITs, U.S. Sunbelt multi-family and CDN self storage - the three darlings during/post COVID. We observed that unit prices/AFFO [adjusted funds from operations] multiples peaked, in and around the same time when market rent growth peaked ... Based on supply-demand backdrop in Seniors Housing, we believe, market rent growth story is likely to sustain for the next few years, and as such Seniors Housing remains our most preferred sector ... CSH (CSH-UN-T) remains our top pick.' *** A nuclear power-focused podcast from BofA Securities emphasized thorium and a more enriched form of uranium, 'While adding capacity to existing plants isn't a major challenge, adding new US plants is more difficult. Jess Gehin from the Idaho National Lab and BofA Global Research's US Utility analyst Ross Fowler join to discuss what may lie ahead. Jess covers how the recent Executive Orders could accelerate the deployment of nuclear and how they've already stimulated activity. Jess also discusses HALEU [High-Assay Low-Enriched Uranium], a more enriched variety of uranium used in some of the small modular nuclear reactors as well as Thorium, a reactor fuel that was studied in the 1960s and which has seen a resurgence of interest. While Thorium could eventually provide the US a domestically sourced nuclear fuel that enables longer term growth in nuclear generation, Jess believes uranium will be the fuel that continues to dominate for the foreseeable future.' 'Dig it - nuclear renaissance looks to the '60s for inspiration' – BofA Securities *** Bloomberg's Edward Harrison sees trouble brewing under the surface of the U.S. economy, 'Ponzi financing has increased dramatically. Investors are chasing the next … Translation: investors have become increasingly comfortable buying shares of companies that can't fund themselves out of their own cash flow. Why is that, you might ask? I believe a lot of it has to do with the proven Silicon Valley model. It's Apple. It's Microsoft. It's Amazon… people are willing to overlook Ponzi financing of smaller public companies, regardless of sector, as they wait for profits to gush out when the companies reach scale. By the numbers, * 74.8% - Percent of small firms with negative sources of cash … If that constant uncertainty and whipsawing of prices finally brings the US economy to a standstill, there's a non- zero risk — I'd call it substantial — that investors' willingness to fund firms with operating budgets that exceed cash flow would diminish swiftly and substantially … What does that mean for big firms and the economy? My view is that it's akin to what we saw when the Internet bubble popped. Many a small internet companies and upstart telecom businesses went bust' 'The Financial Fragility Risks Are Not in the S&P 500' – Bloomberg *** Bluesky post of the day: Diversion: ' Midlife Mood Shift? Study Says Anger Drops After 50' – SciTechDaily
Yahoo
2 days ago
- Business
- Yahoo
Delek Executives Boost Holdings Amid Market Uncertainty and Earnings Pressure
Delek US Holdings, Inc. (NYSE:DK) is one of the . The stock is experiencing mixed ratings, with raised price targets, following a challenging first quarter of 2025 earnings results. A tanker ship at sea with a landscape of oil derricks in the background. With headquarters in Tennessee, the downstream energy company, Delek US Holdings, Inc. (NYSE:DK), operates four inland refineries (~302,000 bpd capacity), asphalt production facilities, renewable fuels plants, and logistics assets. Focus lies in processing light crude into transportation fuel, lubricants, and petrochemical feedstocks, and distributing them via pipelines, terminals, trucking, and rail. The Q1 2025 earnings report of Delek US Holdings, Inc. (NYSE:DK) showed a net loss of $173 million and an adjusted net loss of $144 million during the quarter. Owing to seasonal low demand trends, the company's supply and marketing operations generated a loss of $23.7 million, despite making significant progress in improving operational performance. Following these results, some analysts from firms including Scotiabank and Piper Sandler reaffirmed their Hold rating on the stock. On June 11, 2025, Wells Fargo maintained a Sell rating on the stock but raised the price target from $11 to $15. Significant purchases during the month of March have slightly increased the insider transaction by 1.14% in the last six months, suggesting a certain level of insider confidence, thus leading to the entry of Delek US Holdings, Inc. (NYSE:DK) in our list of 10 energy stocks with insider buying. While we acknowledge the potential of DK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best High Risk Penny Stocks to Invest in and Disclosure. None. 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
