Latest news with #businessactivity
Yahoo
23-05-2025
- Business
- Yahoo
Asian shares gain as Treasuries find support
By Stella Qiu SYDNEY (Reuters) -Asian shares gained on Friday as beaten-down Treasuries found buyers after U.S. President Donald Trump's tax bill narrowly passed the lower house, although debt worries still dominated. European shares are similarly poised for a higher open, with EUROSTOXX 50 futures up 0.2% and FTSE futures 0.3% higher. Nasdaq futures and S&P 500 futures were both flat. Overnight, PMI data around the globe showed U.S. business activity picked up pace in May, which helped Wall Street rise earlier in the session before running into selling pressures and closing the day little changed. In contrast, disappointingly weak activity in Europe dragged shares there lower. [.N] The Republican-controlled U.S. House voted by a slim margin to pass Trump's tax cut bill, which would fulfil many of his campaign pledges, but will increase the $36.2 trillion U.S. debt pile by $3.8 trillion over the next decade. Treasury yields, especially at the longer-dated end, have climbed on worries about U.S. fiscal health in the run-up to the passage of the bill. That was exacerbated by the decision from Moody's last week to downgrade the U.S. credit rating, citing rising debt. The 30-year bonds, however, did manage to find some buyers with prices now at some attractive levels. Their yields fell another 1.6 basis point to 5.048% on Friday, having dropped 2.5 bps overnight to pull away from a 19-month top of 5.161% earlier in the session. They are still up 15 bps this week. "Maybe the certainty of getting something through has been enough to alleviate some of the fear, panic in the market, but as well as that, it is not unusual in big moves for there to be a bit of overshoot," said Ken Crompton, senior interest rate strategist at the National Australia Bank. "There is certainly nothing in this market move or the passage of this version of the bill that tells me there is going to be meaningful reductions in U.S. bond issuance or this broader concern about global bond supply." In Asia, yields on super-long Japanese government bonds (JGBs) also retreated from their highs. The 30-year yields fell 5 basis points to 3.115%, after hitting all-time highs earlier in the week, with the jump being monitored closely by the Bank of Japan. The MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5% on Friday, which helped it erase earlier losses in the week. Chinese blue chips were flat but Hong Kong's Hang Seng rose 0.6%. Japan's Nikkei gained 0.5% as data showed Japan's core inflation accelerated at its fastest annual pace in more than two years in April. In the currency market, the dollar was on the back foot again and is headed for a weekly drop of 1.3% against its major peers. The euro is set for the first weekly rise after four weeks of declines, and was up 0.3% on Friday at $1.1309. [FRX/] U.S. Federal Reserve Governor Christopher Waller said on Thursday he still sees a path to rate cuts later this year, but noted that the outlook depends on where Trump's tariff policy settles. Separately, a U.S. Supreme Court ruling on Thursday in a legal battle over Trump's firing of two federal labor board members contained a line that eased, for now, worries that the cases could open the door for the president to fire Fed Chair Jerome Powell at will. Bitcoin prices dipped from its record high but it was still set for a weekly gain of 6.4% to $110,796. Oil prices fell for a fourth straight session on the prospect of further output increases by OPEC+ countries. U.S. crude futures dropped 0.5% to $60.89 a barrel and were down 2.6% for the week. Brent also slipped 0.5% at $64.15 per barrel. In precious metals, gold prices rose 0.7% at $3,317 an ounce, and were set for a weekly gain of 3.6%. Sign in to access your portfolio
CNA
23-05-2025
- Business
- CNA
Asian shares gain as Treasuries find support
SYDNEY :Asian shares gained on Friday as beaten-down Treasuries found buyers after U.S. President Donald Trump's tax bill narrowly passed the lower house, although debt worries still dominated. European shares are similarly poised for a higher open, with EUROSTOXX 50 futures up 0.2 per cent and FTSE futures 0.3 per cent higher. Nasdaq futures and S&P 500 futures were both flat. Overnight, PMI data around the globe showed U.S. business activity picked up pace in May, which helped Wall Street rise earlier in the session before running into selling pressures and closing the day little changed. In contrast, disappointingly weak activity in Europe dragged shares there lower. The Republican-controlled U.S. House voted by a slim margin to pass Trump's tax cut bill, which would fulfil many of his campaign pledges, but will increase the $36.2 trillion U.S. debt pile by $3.8 trillion over the next decade. Treasury yields, especially at the longer-dated end, have climbed on worries about U.S. fiscal health in the run-up to the passage of the bill. That was exacerbated by the decision from Moody's last week to downgrade the U.S. credit rating, citing rising debt. The 30-year bonds, however, did manage to find some buyers with prices now at some attractive levels. Their yields fell another 1.6 basis point to 5.048 per cent on Friday, having dropped 2.5 bps overnight to pull away from a 19-month top of 5.161 per cent earlier in the session. They are still up 15 bps this week. "Maybe the certainty of getting something through has been enough to alleviate some of the fear, panic in the market, but as well as that, it is not unusual in big moves for there to be a bit of overshoot," said Ken Crompton, senior interest rate strategist at the National Australia Bank. "There is certainly nothing in this market move or the passage of this version of the bill that tells me there is going to be meaningful reductions in U.S. bond issuance or this broader concern about global bond supply." In Asia, yields on super-long Japanese government bonds (JGBs) also retreated from their highs. The 30-year yields fell 5 basis points to 3.115 per cent, after hitting all-time highs earlier in the week, with the jump being monitored closely by the Bank of Japan. The MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 per cent on Friday, which helped it erase earlier losses in the week. Chinese blue chips were flat but Hong Kong's Hang Seng rose 0.6 per cent. Japan's Nikkei gained 0.5 per cent as data showed Japan's core inflation accelerated at its fastest annual pace in more than two years in April. In the currency market, the dollar was on the back foot again and is headed for a weekly drop of 1.3 per cent against its major peers. The euro is set for the first weekly rise after four weeks of declines, and was up 0.3 per cent on Friday at $1.1309. U.S. Federal Reserve Governor Christopher Waller said on Thursday he still sees a path to rate cuts later this year, but noted that the outlook depends on where Trump's tariff policy settles. Separately, a U.S. Supreme Court ruling on Thursday in a legal battle over Trump's firing of two federal labor board members contained a line that eased, for now, worries that the cases could open the door for the president to fire Fed Chair Jerome Powell at will. Bitcoin prices dipped from its record high but it was still set for a weekly gain of 6.4 per cent to $110,796. Oil prices fell for a fourth straight session on the prospect of further output increases by OPEC+ countries. U.S. crude futures dropped 0.5 per cent to $60.89 a barrel and were down 2.6 per cent for the week. Brent also slipped 0.5 per cent at $64.15 per barrel.
Zawya
23-05-2025
- Business
- Zawya
Asian shares make cautious gains as beaten-down Treasuries find support
SYDNEY: Asian shares made some tentative gains on Friday as beaten-down Treasuries found buyers after U.S. President Donald Trump's tax bill narrowly passed the lower house, although debt worries still lingered. Overnight, PMI data around the globe showed U.S. business activity picked up pace in May, which helped Wall Street rise earlier in the session before running into selling pressures and closing the day largely flat. In contrast, disappointingly weak activity in Europe dragged shares there lower. Nasdaq futures and S&P 500 futures both were flat. The Republican-controlled U.S. House voted by a slim margin to pass Trump's tax cut bill, which would fulfil many of his campaign pledges, but will increase the $36.2 trillion U.S. debt pile by $3.8 trillion over the next decade. Treasury yields, especially at the longer-dated end, have climbed on worries about U.S. fiscal health in the run-up to the passage of the bill. That was exacerbated by the decision from Moody's last week to downgrade the U.S. credit rating, citing rising debt. The 30-year bonds, however, did manage to find some buyers overnight with prices now at some attractive levels. Their yields fell another 1 basis point to 5.037% on Friday, having dropped 4 bps to pull away from a 19-month top of 5.161% earlier in the session. "Maybe the certainty of getting something through has been enough to alleviate some of the fear, panic in the market, but as well as that, it is not unusual in big moves for there to be a bit of overshoot," said Ken Crompton, senior interest rate strategist at the National Australia Bank. "There is certainly nothing in this market move or the passage of this version of the bill that tells me there is going to be meaningful reductions in U.S. bond issuance or this broader concern about global bond supply." In Asia, yields on super-long Japanese government bonds (JGBs) held near all-time highs on Friday. The 30-year yields have jumped 23 basis points this week and were last at 3.175%, which is being monitored closely by the Bank of Japan. The MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1% on Friday but for the week it is still set for a loss of 0.4% after five weeks of gains. Chinese blue chips and Hong Kong's Hang Seng were largely flat. Japan's Nikkei rose 1% as data showed Japan's core inflation accelerated at its fastest annual pace in more than two years in April. In the currency market, the dollar was on the back foot again and is headed for a weekly drop of 1.2% against its major peers. The euro is set for the first weekly rise after four weeks of declines, and was up 0.2% on Friday at $1.1302. U.S. Federal Reserve Governor Christopher Waller said on Thursday he still sees a path to rate cuts later this year, but noted that the outlook depends on where Trump's tariff policy settles. Bitcoin is set for a weekly gain of 7% at $111,524, having touched a record high of $111,965 just on Thursday. Oil prices fell for a fourth straight session on the prospects of further output increases by OPEC+ countries. U.S. crude futures dropped 0.7% to $60.76 a barrel and were down 2.7% for the week. Brent fell 0.6% at $64.03 per barrel. In precious metals, gold prices were flat at $3,292 an ounce, but were set for a weekly gain of 2.8%.
Reuters
23-05-2025
- Business
- Reuters
Asian shares make cautious gains as beaten-down Treasuries find support
SYDNEY, May 23 (Reuters) - Asian shares made some tentative gains on Friday as beaten-down Treasuries found buyers after U.S. President Donald Trump's tax bill narrowly passed the lower house, although debt worries still lingered. Overnight, PMI data around the globe showed U.S. business activity picked up pace in May, which helped Wall Street rise earlier in the session before running into selling pressures and closing the day largely flat. In contrast, disappointingly weak activity in Europe dragged shares there lower. Nasdaq futures and S&P 500 futures both were flat. The Republican-controlled U.S. House voted by a slim margin to pass Trump's tax cut bill, which would fulfil many of his campaign pledges, but will increase the $36.2 trillion U.S. debt pile by $3.8 trillion over the next decade. Treasury yields, especially at the longer-dated end, have climbed on worries about U.S. fiscal health in the run-up to the passage of the bill. That was exacerbated by the decision from Moody's last week to downgrade the U.S. credit rating, citing rising debt. The 30-year bonds , however, did manage to find some buyers overnight with prices now at some attractive levels. Their yields fell another 1 basis point to 5.037% on Friday, having dropped 4 bps to pull away from a 19-month top of 5.161% earlier in the session. "Maybe the certainty of getting something through has been enough to alleviate some of the fear, panic in the market, but as well as that, it is not unusual in big moves for there to be a bit of overshoot," said Ken Crompton, senior interest rate strategist at the National Australia Bank. "There is certainly nothing in this market move or the passage of this version of the bill that tells me there is going to be meaningful reductions in U.S. bond issuance or this broader concern about global bond supply." In Asia, yields on super-long Japanese government bonds (JGBs) held near all-time highs on Friday. The 30-year yields have jumped 23 basis points this week and were last at 3.175%, which is being monitored closely by the Bank of Japan. The MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab inched up 0.1% on Friday but for the week it is still set for a loss of 0.4% after five weeks of gains. Chinese blue chips (.CSI300), opens new tab and Hong Kong's Hang Seng (.HSI), opens new tab were largely flat. Japan's Nikkei (.N225), opens new tab rose 1% as data showed Japan's core inflation accelerated at its fastest annual pace in more than two years in April. In the currency market, the dollar was on the back foot again and is headed for a weekly drop of 1.2% against its major peers. The euro is set for the first weekly rise after four weeks of declines, and was up 0.2% on Friday at $1.1302. U.S. Federal Reserve Governor Christopher Waller said on Thursday he still sees a path to rate cuts later this year, but noted that the outlook depends on where Trump's tariff policy settles. Bitcoin is set for a weekly gain of 7% at $111,524, having touched a record high of $111,965 just on Thursday. Oil prices fell for a fourth straight session on the prospects of further output increases by OPEC+ countries. U.S. crude futures dropped 0.7% to $60.76 a barrel and were down 2.7% for the week. Brent fell 0.6% at $64.03 per barrel. In precious metals, gold prices were flat at $3,292 an ounce, but were set for a weekly gain of 2.8%.
Reuters
22-05-2025
- Business
- Reuters
US business activity improves in May; inflation poised to accelerate sharply
WASHINGTON, May 22 (Reuters) - U.S. business activity picked up in May amid a truce in the trade war between Washington and China, but President Donald Trump's sweeping tariffs on imported goods raised prices for companies and consumers. The survey from S&P Global on Thursday hinted at an acceleration in inflation in the coming months and a labor market slowdown, a reminder that stagflation remained a risk for the economy despite steps by the Trump administration to de-escalate trade tensions with Beijing. Manufacturing delivery delays were the longest in 31 months while exports of services, including spending by foreign visitors in the U.S., dropped at the sharpest pace since the COVID-19 pandemic lockdowns in early 2020. There has been a sharp drop in tourism and lower airline ticket sales and hotel and motel bookings since Trump launched an immigration crackdown and repeatedly expressed his desire to make Canada the 51st U.S. state and acquire Greenland. S&P Global's flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, increased to 52.1 this month from 50.6 in April. A reading above 50 indicates expansion in the private sector. The survey's flash manufacturing PMI increased to 52.3 from 50.2 in the prior month. Economists polled by Reuters had forecast the manufacturing PMI would dip to 50.1. Its flash services PMI rose to 52.3 from 50.8 in April. Economists had forecast the services PMI would be unchanged. The survey was conducted in the May 12-21 period, after the White House announced a deal to slash duties on imports from China to 30% from 145% for 90 days. "At least some of the upturn in May can be linked to companies and their customers seeking to front-run further possible tariff-related issues, most notably the potential for future tariff hikes after the 90-day pause lapses in July," said Chris Williamson, chief business economist at S&P Global Market Intelligence. Williamson noted that input inventories had surged to an 18-year high because of worries about tariff-related supply shortages and price increases. The improvement in the PMI aligns with economists' expectations for a rebound in economic activity this quarter after gross domestic product contracted at a 0.3% annualized rate in the first quarter. Though risks of a recession have diminished, the economy remains in danger of experiencing a period of tepid growth and high inflation, which could complicate matters for the Federal Reserve. Economists expect GDP growth to slow to below 1% this year, with Personal Consumption Expenditures (PCE) inflation, excluding the volatile food and energy components, forecast to rise about 3.5%. The economy grew 2.8% in 2024, while the so-called core PCE inflation increased 2.8%. Though business sentiment improved this month, it remained slightly below the 2024 average due to lingering worries about the negative effects of the Trump administration's policies, including spending cuts. S&P Global survey's measure of new orders received by businesses increased to 52.4 from 51.7 in April, mostly driven by manufacturing. A measure of prices paid by businesses for inputs vaulted to 63.4, the highest level since November 2022, from 58.5 in April. Businesses passed on the higher costs to consumers. The survey's gauge of prices charged by businesses for goods and services jumped to 59.3, the highest since August 2022, from 54.0 in April. "The overall rise in prices charged for goods and services ... is indicative of consumer price inflation moving sharply higher," Williamson said. A gauge of employment dropped to 49.5 from 50.2 last month, "primarily reflecting concerns over future demand prospects but also in response to worries over rising costs and labor shortages."
