Latest news with #USeconomy
Reuters
3 days ago
- Business
- Reuters
US equity funds see weekly redemptions on trade tensions
May 30 (Reuters) - U.S. equity funds faced a second successive weekly outflow in the week through May 28 as tariff threats from President Donald Trump and concerns over rising borrowing costs prompted investors to cut exposure to U.S. assets. Investors pulled a net $5.46 billion worth of capital from U.S. equity funds during the week, adding to the previous week's $11.02 billion net sales, data from LSEG Lipper showed. U.S. small-cap equity funds came under pressure as investors pulled $2.39 billion—their largest weekly outflow since April 30. Large-cap and mid-cap funds also saw redemptions, with net outflows of $5.46 billion and $1.02 billion, respectively. In contrast, sectoral funds attracted strong demand, recording $1.46 billion in net inflows and reversing the previous week's $985 million in outflows. The tech and industrial sectors led the gains with net purchases of $1.4 billion and $499 million, respectively. Investors remained net buyers of U.S. bond funds for a sixth consecutive week, adding $6.98 billion in net inflows. Short-to-intermediate investment-grade funds led the demand with $1.89 billion, marking their largest weekly inflow since March 5. U.S. government bond funds and general domestic taxable fixed income funds also attracted $1.55 billion and $479 million, respectively. Investors, however, pulled a net $24.91 billion from money market funds, reversing the previous week's $21.37 billion in inflows.
Zawya
3 days ago
- Business
- Zawya
Gold falls as dollar strengthens ahead of key US inflation data
Gold prices fell on Friday as the dollar ticked up, while investors remained cautious ahead of key U.S. inflation data due later in the day to gauge the Federal Reserve's monetary policy trajectory. Spot gold was down 0.6% at $3,295.99 an ounce, as of 0841 GMT. Bullion is down 1.8% so far this week. U.S. gold futures fell 0.6% to $3,294.20. The dollar rose 0.2% against its rivals and is on track for a weekly gain, making gold costlier for foreign buyers. "The U.S. dollar is up slightly this morning, which could be a source of pressure for gold," said Carsten Menke, analyst at Julius Baer. "Barring a major surprise to the PCE data, I would not expect gold to show a meaningful reaction. That said, the market seems to be a bit more nervous as of late, suggesting that volatility should stay high in the short-term." The Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation measure, is due at 1230 GMT. The data is likely to show that inflation rose 2.2% in April, according to economists polled by Reuters, compared with a 2.3% increase in March. "With U.S. core PCE looming large, there is some hesitance to take new long positions in gold," said Tim Waterer, chief market analyst at KCM Trade. Investors are currently anticipating 50 basis points worth of rate cuts by the end of this year, starting in October. Zero-yield bullion tends to do well in a low-interest rate environment. Meanwhile, a federal appeals court temporarily reinstated the most sweeping of President Donald Trump's tariffs on Thursday, a day after a U.S. trade court ruled he had exceeded his authority and ordered an immediate block. Spot silver fell 0.6% to $33.16 an ounce, platinum eased 0.8% to $1,073.80 and palladium dropped 0.4% to $969.79.
Arabian Business
4 days ago
- Business
- Arabian Business
Dollar, stocks and oil rally as US court deems Trump's tariffs illegal
US dollar, stock futures and oil prices rallied following the decision of a US court to block President Donald Trump's 'Liberation Day' import tariffs from taking effect. On Wednesday, the Manhattan-based Court of International Trade said the US Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president's emergency powers to safeguard the US economy. It said Trump overstepped his authority by imposing across-the-board tariffs on imports from nations that sell more to the US than they buy. The Trump administration has filed an appeal against the ruling. Contracts for the S&P 500 and Nasdaq 100 gained 1.4 per cent and 1.7 per cent, respectively. Asian markets were also reacting favourably to the news. At 0630 UAE time, Japan's Nikkei 225 was up 1.68 per cent 38,355, while Hang Seng had improved 0.42 per cent to 23,356. South Korea's KOSPI gained 1.56 per cent to a nine-month high of 2711.85. India's GIFT NIFTY was up 106.5 points, or 0.43 per cent, to 24,844. EUROSTOXX 50 futures was up by 1.1 per cent, and FTSE futures gained 0.7 per cent. Dollar surged against the euro, yen and Swiss franc. It rose 0.6 per cent against the yen to 145.72 and 0.65 per cent against the franc to 0.8326. The euro slid 0.5 per cent to US$1.1232, while pound sterling fell 0.2 per cent to US$1.3432. The dollar index, which measures the US currency against six major peers, climbed back above 100 for the first time in a week and was last at 100.40. Dollar slipped nearly 8 per cent this year as Trump's plans sent jitters across the market and led to investors pulling out their money from the US. Meanwhile, brent crude futures climbed 81 cents, or 1.25 per cent, to US$65.71 a barrel. US West Texas Intermediate crude advanced by 83 cents, or 1.34 per cent, to US$62.62 a barrel. Experts have warned that the rise could be short-lived, amidst concerns of potential new sanctions on Russian crude, and a possible decision by the Organisation of the Petroleum Exporting Countries (OPEC+) to hike its oil production in July.
Wall Street Journal
4 days ago
- Business
- Wall Street Journal
Bank of Mexico Cuts Economic Growth Forecasts
MEXICO CITY–The Bank of Mexico lowered its economic growth estimates for this year and next, citing uncertainty about the impact of U.S. import tariffs and weakness in domestic consumption and investment. In its quarterly report, the central bank said it expects Mexico's gross domestic product to grow 0.1% this year, down from it's previous estimate of 0.6%. The forecast ranges from a contraction of 0.5% to an expansion of 0.7%. For 2026, the bank cut its growth forecast to 0.9% from 1.8% previously.
Bloomberg
5 days ago
- Business
- Bloomberg
Foreign Students Are Central to US Growth: Ex-RBI Governor
'The Sergey Brins of the world came as students and did wonders for the US economy." Raghuram Rajan, former RBI governor, warns of long-term risks to the US if politics erodes the pipeline of international students to American universities. (Source: Bloomberg)
