Gold inches lower on firmer dollar; investors await Fed rate call

Higher U.S. interest rates tend to boost the dollar and also push up bond yields, reducing the appeal of non-yielding bullion. But for now, we think the Fed will continue with the monetary policy tightening,” said Benjamin Lu, a commodities analyst with Phillip Futures. Spot gold was down 0.2 percent at $1,223.70 per ounce, as of 0410 GMT, while U.S. gold futures fell 0.3 percent to $1,224.7 per ounce. Palladium fell 0.3 percent to $1,130.60 per ounce, after touching a two-week high of $1,139.50


Higher U.S. interest rates tend to boost the dollar and also push up bond yields, reducing the appeal of non-yielding bullion. But for now, we think the Fed will continue with the monetary policy tightening,” said Benjamin Lu, a commodities analyst with Phillip Futures. Spot gold was down 0.2 percent at $1,223.70 per ounce, as of 0410 GMT, while U.S. gold futures fell 0.3 percent to $1,224.7 per ounce. Palladium fell 0.3 percent to $1,130.60 per ounce, after touching a two-week high of $1,139.50
Gold inches lower on firmer dollar; investors await Fed rate call Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-08
Keywords: news, cnbc, companies, dollar, rates, policy, fell, gold, inches, ounce, fed, await, rate, 02, twoweek, previous, investors, lower, firmer


Gold inches lower on firmer dollar; investors await Fed rate call

Gold prices inched lower on Thursday on the back of a stronger dollar as investors digested the U.S. midterm election results and turned their focus to the Federal Reserve’s monetary policy decision due later in the day.

The Fed is not expected to raise interest rates until its next gathering in December, however market participants are waiting to see whether it offers clues about possible rate increases in December and in 2019.

Higher U.S. interest rates tend to boost the dollar and also push up bond yields, reducing the appeal of non-yielding bullion.

“Gold has found support around $1,223. If we see good news from the Fed, we may see a bounce. But for now, we think the Fed will continue with the monetary policy tightening,” said Benjamin Lu, a commodities analyst with Phillip Futures.

Spot gold was down 0.2 percent at $1,223.70 per ounce, as of 0410 GMT, while U.S. gold futures fell 0.3 percent to $1,224.7 per ounce.

The dollar index, which measures the greenback against a basket of six major currencies, traded in a narrow range and was last up 0.2 percent, having touched a more than two-week low in the previous session.

“I suspect gold will ping pong along with the U.S. dollar as traders begin to re-evaluate the current state of the USD,” Stephen Innes, APAC trading head at OANDA in Singapore, said in a note.

Meanwhile, Asian stocks rose to a one-month peak following a post-election rally on Wall Street.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.19 percent to 755.23 tonnes on Wednesday, marking the fourth straight session on declines.

Spot gold still targets $1,211, said Reuters technical analyst Wang Tao.

In other precious metals, silver was down 0.2 percent at $14.54 per ounce.

Palladium fell 0.3 percent to $1,130.60 per ounce, after touching a two-week high of $1,139.50 an ounce in the previous session.

Platinum was 0.7 percent lower at $866.85 an ounce, after hitting its highest since June 25 at $877.50 an ounce on Wednesday.


Company: cnbc, Activity: cnbc, Date: 2018-11-08
Keywords: news, cnbc, companies, dollar, rates, policy, fell, gold, inches, ounce, fed, await, rate, 02, twoweek, previous, investors, lower, firmer


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Asia stocks mixed as investors await US midterm elections

Asian stocks were mixed on Tuesday afternoon as investors looked to the U.S. midterm elections set for later in the day. The Greater China markets were in negative territory by the end of the morning session, with the Shanghai composite dropping 1.05 percent and the Shenzhen composite falling 1.611 percent. Japan’s Nikkei 225 rose by 1 percent in afternoon trade and the Topix index saw gains of 1.16 percent. In Australia, the ASX 200 was 0.92 percent higher in afternoon trade, with most sectors


Asian stocks were mixed on Tuesday afternoon as investors looked to the U.S. midterm elections set for later in the day. The Greater China markets were in negative territory by the end of the morning session, with the Shanghai composite dropping 1.05 percent and the Shenzhen composite falling 1.611 percent. Japan’s Nikkei 225 rose by 1 percent in afternoon trade and the Topix index saw gains of 1.16 percent. In Australia, the ASX 200 was 0.92 percent higher in afternoon trade, with most sectors
Asia stocks mixed as investors await US midterm elections Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-06  Authors: eustance huang
Keywords: news, cnbc, companies, progress, australia, percentthe, territory, negative, gains, midterm, investors, await, saw, trade, afternoon, elections, sectors, stocks, mixed, asia


Asia stocks mixed as investors await US midterm elections

Asian stocks were mixed on Tuesday afternoon as investors looked to the U.S. midterm elections set for later in the day.

The Greater China markets were in negative territory by the end of the morning session, with the Shanghai composite dropping 1.05 percent and the Shenzhen composite falling 1.611 percent. Meanwhile, Hong Kong’s Hang Seng index slipped by 0.15 percent.

Japan’s Nikkei 225 rose by 1 percent in afternoon trade and the Topix index saw gains of 1.16 percent.

Shares of conglomerate Softbank fell into negative territory after having earlier seen gains, trading around 2.65 percent lower in the afternoon despite earlier reporting a profit surge for the second quarter of 2018 helped by higher valuations on high-tech bets. The conglomerate’s CEO, Masayoshi Son, said on Monday that “there may be some impact” on its Saudi-backed Vision Fund following the killing of Saudi journalist Jamal Khashoggi

The Japanese tech investment giant has poured billions into start-ups in Silicon Valley and around the world through this investment fund.

In Australia, the ASX 200 was 0.92 percent higher in afternoon trade, with most sectors seeing gains. The energy and materials sectors were up 1.47 and 1.67 percent, respectively, as the heavily weighted financial subindex advanced 0.84 percent.

The moves Down Under came after the Reserve Bank of Australia announced its decision to keep the cash rate unchanged at 1.5 percent.

“The low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual,” the central bank’s governor, Philip Lowe, said in a media release.

The move was widely anticipated by market observers, with Rakuten Securities Australia saying in a morning note that “local investors looking to make money today will probably be (focusing) more on the Melbourne Cup which takes place 30 mins after the announcement.”

Meanwhile, South Korea’s Kospi saw a gain of 0.17 percent in afternoon trade.


Company: cnbc, Activity: cnbc, Date: 2018-11-06  Authors: eustance huang
Keywords: news, cnbc, companies, progress, australia, percentthe, territory, negative, gains, midterm, investors, await, saw, trade, afternoon, elections, sectors, stocks, mixed, asia


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How healthy are Italian banks? Investors await stress tests in Europe to find out

Italian banks have been hit by market concerns over the country’s politics. Most of Italian debt is held by domestic institutions, with Italian banks owning 20 percent of the total debt load, according to data from Citigroup. As a result, the increase in bond yields on the back of concerns over Italy’s politics have brought problems for Italian banks. So, troubled times for Italian debt also extends to those holding it too. If you add potential issues in ECB bank stress tests, the banks would be


Italian banks have been hit by market concerns over the country’s politics. Most of Italian debt is held by domestic institutions, with Italian banks owning 20 percent of the total debt load, according to data from Citigroup. As a result, the increase in bond yields on the back of concerns over Italy’s politics have brought problems for Italian banks. So, troubled times for Italian debt also extends to those holding it too. If you add potential issues in ECB bank stress tests, the banks would be
How healthy are Italian banks? Investors await stress tests in Europe to find out Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-01  Authors: silvia amaro
Keywords: news, cnbc, companies, banks, market, means, told, european, debt, tests, healthy, italian, europe, investors, stress, yields, await


How healthy are Italian banks? Investors await stress tests in Europe to find out

Italian banks have been hit by market concerns over the country’s politics. The anti-establishment government, which took power in June, has promised to increase public spending in the coming year, raising worries about the stability of the Italian economy given its massive debt pile.

Most of Italian debt is held by domestic institutions, with Italian banks owning 20 percent of the total debt load, according to data from Citigroup. As a result, the increase in bond yields on the back of concerns over Italy’s politics have brought problems for Italian banks. This is because when yields rise it means there’s a higher perceived risk. It also means that the chances of seeing a return on their Italian bonds are reduced. So, troubled times for Italian debt also extends to those holding it too.

There is “the risk of a double whammy,” Ricardo Garcia, chief euro zone economist at UBS told CNBC via email, ahead of Friday’s results.

“Banks are already under pressure due to losses on their Italian BTP holdings. If you add potential issues in ECB bank stress tests, the banks would be under pressure from two sides,” he explained.

Out of the 48 banks under analysis, four are Italian. They are: UniCredit, Intesa Sanpaolo, Banco BPM and Unione di Banche Italiane.

“The Italian banking sector will be under particularly scrutiny given market concerns about the still relatively high stock of non-performing loans,” Fabio Trussardi, banking analyst at UBS Global Wealth Management, told CNBC via email.

The European Banking Authority (EBA) said in a report that non-performing loans (NPLs) have fallen in the last year, coming down to an average of 3.6 percent in the second quarter of this year across the region. However, the same report showed that the ratio of NPLs in Italy was 9.7 percent in the same period, much higher than the EU average.

“While this year macro assumptions will be harsher, we would expect an overall reassuring set of results,” Trussardi said about Italy’s banks. He noted that the NPL ratio, though high, has come down from last year and the macro assumptions for Italy are not particularly harsh compared to other countries.

Credit rating agency DBRS suggested in a note on Wednesday that the stress tests could have gone one step further in forecasting the banks’ performance during an adverse scenario.

“Even though the euro zone architecture has strengthened to face a new sovereign crisis, countries may experience yields rising more than the ones assumed in the 2018 exercise,” the agency said.

“For example, Italy’s 10-year sovereign bond yield, despite still benefiting from the quantitative easing, has increased on average by around 100 basis points since May 2018. This compares to the maximum shock of 120 basis points outlined in the 2018 stress test scenario,” DBRS noted.

Imagining a scenario where yields on European debt rise is not farfetched. The European Central Bank is due to end its quantitative easing program — by which it purchases European bonds every month to boost the European economy — in December. This means that without the ECB’s presence in the market as of January, European bond yields could rise.

“We are not short on any Italian banks at present and think the EU has everything to gain in the short term from a degree of fudge,” Colin McLean, CEO at SVM Asset Management, told CNBC via email.

“I don’t think the market will get much useful information from the tests other than for the very property exposed ones,” he said, adding that “the risks to banks and the European economy is more competition for deposits and a squeeze on borrowing by second tier credit corporates.”


Company: cnbc, Activity: cnbc, Date: 2018-11-01  Authors: silvia amaro
Keywords: news, cnbc, companies, banks, market, means, told, european, debt, tests, healthy, italian, europe, investors, stress, yields, await


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Turkish lira weakens as investors await central bank rates decision

The Turkish lira weakened on Thursday as investors took a cautious stance ahead of the central bank’s rate-setting meeting, where it was expected to hike rates sharply to support the ailing currency. At 0548 GMT, the lira was at 6.3700 against the dollar, easing from Wednesday’s close of 6.3450. It has lost 40 percent of its value against the U.S. currency this year but has rebounded from a record low of 7.24 percent a month ago. The central bank will announce its rates decision at 2 pm (1100 GM


The Turkish lira weakened on Thursday as investors took a cautious stance ahead of the central bank’s rate-setting meeting, where it was expected to hike rates sharply to support the ailing currency. At 0548 GMT, the lira was at 6.3700 against the dollar, easing from Wednesday’s close of 6.3450. It has lost 40 percent of its value against the U.S. currency this year but has rebounded from a record low of 7.24 percent a month ago. The central bank will announce its rates decision at 2 pm (1100 GM
Turkish lira weakens as investors await central bank rates decision Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-13  Authors: murad sezer
Keywords: news, cnbc, companies, central, turkish, investors, decision, await, hike, weakens, worries, concerns, bank, gmt, rates, weakness, wednesdays, lira


Turkish lira weakens as investors await central bank rates decision

The Turkish lira weakened on Thursday as investors took a cautious stance ahead of the central bank’s rate-setting meeting, where it was expected to hike rates sharply to support the ailing currency.

At 0548 GMT, the lira was at 6.3700 against the dollar, easing from Wednesday’s close of 6.3450. It has lost 40 percent of its value against the U.S. currency this year but has rebounded from a record low of 7.24 percent a month ago.

The central bank will announce its rates decision at 2 pm (1100 GMT) and predictions for a hike ranged between 225 to 725 basis points in a Reuters poll, with the bank balancing concerns over lira weakness with worries about an economic slowdown.

The lira slump has been driven by concerns about President Tayyip Erdogan’s influence on monetary policy and more recently a bitter row with the United States.


Company: cnbc, Activity: cnbc, Date: 2018-09-13  Authors: murad sezer
Keywords: news, cnbc, companies, central, turkish, investors, decision, await, hike, weakens, worries, concerns, bank, gmt, rates, weakness, wednesdays, lira


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Argentine peso sell-off takes a breather as investors await government plan

Early Friday, the currency was trading at 38.3 pesos per dollar. On Thursday, the Central Bank of Argentina unexpectedly raised interest rates to 60 percent from 45 percent, saying the move was in “response to the foreign exchange rate situation and the risk of greater inflation.” It was the fifth time the bank had raised benchmark rates since April. It was reported by Reuters that a fresh policy package detailing cuts to government spending is to be announced Monday. A spike in energy prices an


Early Friday, the currency was trading at 38.3 pesos per dollar. On Thursday, the Central Bank of Argentina unexpectedly raised interest rates to 60 percent from 45 percent, saying the move was in “response to the foreign exchange rate situation and the risk of greater inflation.” It was the fifth time the bank had raised benchmark rates since April. It was reported by Reuters that a fresh policy package detailing cuts to government spending is to be announced Monday. A spike in energy prices an
Argentine peso sell-off takes a breather as investors await government plan Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-31  Authors: sam meredith, eitan abramovich, afp, getty images
Keywords: news, cnbc, companies, trading, investors, selloff, breather, plan, argentine, monetary, argentina, rates, situation, takes, unexpectedly, peso, raised, recent, await, currency, rate


Argentine peso sell-off takes a breather as investors await government plan

The Argentinian peso opened Friday trading in a calmer fashion after a traumatic two days that saw the currency shed 20 percent in value against the U.S. dollar.

Early Friday, the currency was trading at 38.3 pesos per dollar. At the close of Thursday’s trade it had fallen to a record low of 39.25 pesos per dollar.

Argentina’s government is taking dramatic steps to try to restore confidence in its free-falling currency, as Latin America’s third-largest economy grapples with yet another financial crisis.

On Thursday, the Central Bank of Argentina unexpectedly raised interest rates to 60 percent from 45 percent, saying the move was in “response to the foreign exchange rate situation and the risk of greater inflation.”

It was the fifth time the bank had raised benchmark rates since April.

It was reported by Reuters that a fresh policy package detailing cuts to government spending is to be announced Monday.

The South American country’s recent flurry of rate hikes had been prompted by a sudden weakening in the peso after a drought hampered farm exports earlier in the year. A spike in energy prices and a resurgent greenback also worsened the situation as investors started to pull funds from emerging markets.

Market participants are increasingly concerned Buenos Aires could soon default as it struggles to repay heavy government borrowing. This comes after Argentina’s government unexpectedly asked for the early release of a $50 billion loan from the International Monetary Fund (IMF) on Wednesday.

The IMF said in a statement Wednesday that it would look to “revise the government’s economic plan with a focus on better insulating Argentina from recent shifts in global financial markets.”

The Washington D.C.-based institute also added that its plan included “stronger monetary and fiscal policies and a deepening of efforts to support the most vulnerable in society.”

A number of emerging market countries, including Argentina, Turkey and Brazil, are feeling the impact as tighter monetary policy from the U.S. Federal Reserve has boosted the dollar.


Company: cnbc, Activity: cnbc, Date: 2018-08-31  Authors: sam meredith, eitan abramovich, afp, getty images
Keywords: news, cnbc, companies, trading, investors, selloff, breather, plan, argentine, monetary, argentina, rates, situation, takes, unexpectedly, peso, raised, recent, await, currency, rate


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US Treasury yields steady as investors await large Treasury auctions, inflation data

Last week, China said it was ready to retaliate with tariffs on around $60 billion worth of U.S. goods, amid a mounting trade war with the States. Markets in Asia and Europe came under slight pressure on Monday morning, as investors awaited more news on the retaliatory tariffs. While no major speeches by the U.S. Federal Reserve are scheduled to take place Monday, St. Louis Federal Reserve Bank President James Bullard spoke with CNBC on the first trading day of the week. A tightening labor marke


Last week, China said it was ready to retaliate with tariffs on around $60 billion worth of U.S. goods, amid a mounting trade war with the States. Markets in Asia and Europe came under slight pressure on Monday morning, as investors awaited more news on the retaliatory tariffs. While no major speeches by the U.S. Federal Reserve are scheduled to take place Monday, St. Louis Federal Reserve Bank President James Bullard spoke with CNBC on the first trading day of the week. A tightening labor marke
US Treasury yields steady as investors await large Treasury auctions, inflation data Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-06  Authors: alexandra gibbs, thomas franck
Keywords: news, cnbc, companies, data, president, labor, growth, investors, treasury, goods, steady, inflation, auctions, federal, rate, market, yields, trade, large, await, tariffs, reserve


US Treasury yields steady as investors await large Treasury auctions, inflation data

Markets around the globe pulled back Monday, as concerns surrounding trade tensions continued. Last week, China said it was ready to retaliate with tariffs on around $60 billion worth of U.S. goods, amid a mounting trade war with the States. Beijing added that import taxes would be within the range of 5 percent to 25 percent in rates, with many of the goods listed linked to agriculture.

The U.S. administration revealed last Wednesday that President Donald Trump had spoken with U.S. Trade Representative Robert Lighthizer and asked him to consider increasing the proposed levies on $200 billion of Chinese goods up to 25 percent, from 10 percent.

Markets in Asia and Europe came under slight pressure on Monday morning, as investors awaited more news on the retaliatory tariffs.

While no major speeches by the U.S. Federal Reserve are scheduled to take place Monday, St. Louis Federal Reserve Bank President James Bullard spoke with CNBC on the first trading day of the week.

“The positioning here is that the other countries are all free trade and the U.S. is not. If that’s really what we’re saying then just drop all tariffs and all non-tariff barriers. Go down to zero. That would be better outcome for the whole world,” Bullard told CNBC’s “Squawk Box Europe.”

The U.S. government reported on Friday that payroll growth slowed in July.

The Department of Labor said that total nonfarm payrolls increased by 157,000 for the month, below the 190,000 expected by economists polled by Reuters. The unemployment rate fell one-tenth of a percentage point to 3.9 percent, as expected, and is around its lowest level in nearly 50 years.

A tightening labor market and healthy domestic demand have spurred worries of an overheating economy and continued interest rate increases by the Federal Reserve.

But despite the robust labor market, wage growth remains sluggish; average hourly earnings rose 2.7 percent over the same period a year ago, or 0.26 percent over the last month.

—CNBC’s Natasha Turak and Michael Sheetz contributed to this report


Company: cnbc, Activity: cnbc, Date: 2018-08-06  Authors: alexandra gibbs, thomas franck
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Asian shares advance as markets await wave of US-China tariffs

After a tense lead-up to the July 6 deadline for U.S. and China tariffs to take effect, markets will be watching for potential developments on the trade front. U.S. tariffs on $34 billion worth of Chinese goods from 818 product categories that are set to take effect at 12:01 p.m. HK/SIN. China has announced retaliatory duties on the same value of U.S. products, also expected to kick in on Friday. Trump on Thursday said an additional $16 billion of Chinese products will be subject to tariffs in t


After a tense lead-up to the July 6 deadline for U.S. and China tariffs to take effect, markets will be watching for potential developments on the trade front. U.S. tariffs on $34 billion worth of Chinese goods from 818 product categories that are set to take effect at 12:01 p.m. HK/SIN. China has announced retaliatory duties on the same value of U.S. products, also expected to kick in on Friday. Trump on Thursday said an additional $16 billion of Chinese products will be subject to tariffs in t
Asian shares advance as markets await wave of US-China tariffs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-07-06  Authors: cheang ming
Keywords: news, cnbc, companies, trade, china, billion, duties, tariffs, await, shares, markets, uschina, chinese, products, wave, weeks, asian, effect, advance


Asian shares advance as markets await wave of US-China tariffs

After a tense lead-up to the July 6 deadline for U.S. and China tariffs to take effect, markets will be watching for potential developments on the trade front. U.S. tariffs on $34 billion worth of Chinese goods from 818 product categories that are set to take effect at 12:01 p.m. HK/SIN. China has announced retaliatory duties on the same value of U.S. products, also expected to kick in on Friday.

Trump on Thursday said an additional $16 billion of Chinese products will be subject to tariffs in two weeks, also adding that he was considering more duties on $500 billion in Chinese goods.

The Chinese government has said that it will not “fire the first shot” in the trade dispute with the U.S. — due to time zone differences, Beijing is 12 hours ahead — so its tariffs on U.S. products will take effect only after U.S. duties are levied, Reuters reported.

Concerns about trade tensions between the U.S. and its trading partners, including China, spiraling into a trade war that could hurt economic growth have weighed on investor sentiment in Asia in recent sessions, with regional markets closing lower on Thursday. Chinese equity markets have taken a knock in recent weeks, with the benchmark Shanghai composite wallowing in bear market territory since last week.

U.S. stocks shrugged off the soggy session in Asia on Thursday to close higher. The Dow Jones Industrial Average rose 0.75 percent, or 181.92 points and the Nasdaq composite surged 1.12 percent.

Europe also notched gains, with the pan-European Stoxx 600 finishing the session higher by 0.41 percent amid optimism that U.S. President Donald Trump could hold off on threats to slap tariffs on European cars.

Also of note, the Federal Reserve’s latest minutes showed officials were concerned about letting the U.S. economy running too hot, as that could cause problems leading to a “significant economic downturn.” Fed officials said the central bank should proceed with raising U.S. interest rates.

Following the release of U.S. private payrolls data that missed expectations on Thursday, investors are awaiting U.S. nonfarm payrolls due during U.S. hours.

In currencies, the dollar was slightly softer. The dollar index, which tracks the greenback against a basket of currencies, was last at 94.383. That came as the euro firmed against the U.S. currency overnight on the back of strong German data. The euro traded at 1.1691 at 8:10 a.m. HK/SIN.


Company: cnbc, Activity: cnbc, Date: 2018-07-06  Authors: cheang ming
Keywords: news, cnbc, companies, trade, china, billion, duties, tariffs, await, shares, markets, uschina, chinese, products, wave, weeks, asian, effect, advance


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Banks clear the Fed’s doomsday stress test, but investors await payout

Banks have cleared the Federal Reserve’s latest test of their ability to withstand another economic doomsday, but the real test for investors comes next week, when the banks reveal how much they are able to pay out in dividends and share buybacks. Test results made public on Thursday by the Fed show that large and regional U.S. banks have enough capital to withstand the crisis scenarios used in the test. Analysts expected banks clear the hurdle by wide margins, though they were closely watching


Banks have cleared the Federal Reserve’s latest test of their ability to withstand another economic doomsday, but the real test for investors comes next week, when the banks reveal how much they are able to pay out in dividends and share buybacks. Test results made public on Thursday by the Fed show that large and regional U.S. banks have enough capital to withstand the crisis scenarios used in the test. Analysts expected banks clear the hurdle by wide margins, though they were closely watching
Banks clear the Fed’s doomsday stress test, but investors await payout Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-06-21  Authors: liz moyer, ma photo, getty images
Keywords: news, cnbc, companies, investors, feds, scenario, results, withstand, capital, doomsday, clear, await, payout, test, firms, billion, stress, banks, federal, fed


Banks clear the Fed's doomsday stress test, but investors await payout

Banks have cleared the Federal Reserve’s latest test of their ability to withstand another economic doomsday, but the real test for investors comes next week, when the banks reveal how much they are able to pay out in dividends and share buybacks.

Test results made public on Thursday by the Fed show that large and regional U.S. banks have enough capital to withstand the crisis scenarios used in the test. This year 38 banks went through the ringer, though three banks ended up being exempted because of a new law that set a minimum size of $100 billion of assets for those required to participate.

It is the fourth straight year all the banks met the Fed’s standards. That helped bolster arguments from Republican lawmakers that regulations on the industry could be loosened without adverse effects.

The test is not “pass/fail,” but coming through the worst-case scenario is seen as a positive. “Despite a tough scenario and other factors that affected this year’s test, the capital levels of the firms after the hypothetical severe global recession are higher than the actual capital levels of large banks in the years leading up to the most recent recession,” said Fed Vice Chairman Randal K. Quarles in a statement.

Analysts expected banks clear the hurdle by wide margins, though they were closely watching results from the six foreign banks new to the annual ritual this year. In addition to the biggest U.S. banks like Bank of America, Citigroup and J. P. Morgan Chase and others, this year’s test included UBS, RBC, Deutsche Bank, Credit Suisse, BNP Paribas and Barclays.

On a background call with reporters Thursday, senior Fed officials said the test had been run on three banks that ended up being exempted, and it was up to those firms to decide whether to release their results. They are CIT Group, Comerica and Zions Bancorp.

The largest U.S. banks showed they had adequate capital to withstand the harshest scenario, clearing above the minimum requirement. But Goldman Sachs disputed the Fed’s numbers.

“Our models and the Federal Reserve’s models diverge, which we expect to discuss with the Federal Reserve,” the bank said in a statement on Thursday. The “ratios that are published today may not represent our firm’s actual capital return capacity, which may be higher than this year’s test would otherwise indicate.”

In the Thursday afternoon briefing for reporters, the senior Fed officials said this week’s test numbers aren’t necessarily reflective of what next week’s results will look like, when banks are given approval on their capital plans or told to make adjustments.

The Fed does this exercise annually to make sure banks and other financial companies have enough capital to survive after the 2008 financial crisis revealed weaknesses in the system.

This year’s hypothetical scenarios were harsher than past tests, analysts noted. The test imagined unemployment, currently near historic lows, at 10 percent and an environment where there was extreme stress in corporate lending and real estate lending. Credit cards and commercial loans showed the most stress.

Under this severe scenario, the 35 banks would lose $578 billion over the nine quarters tested, the Fed said. Since 2009, the banks in the group have added $800 billion in common equity capital to their balance sheets to shore up for another downturn.


Company: cnbc, Activity: cnbc, Date: 2018-06-21  Authors: liz moyer, ma photo, getty images
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US Treasury yields little changed as investors await Fed minutes

Minutes from their previous meeting showed that “all participants” expected both the economy to strengthen and inflation to rise “in coming months,” citing strong spending patterns and a consistently tight labor market. Consumer prices as measured by the personal consumption expenditures price index — the Fed’s preferred inflation gauge — jumped 2 percent year-on-year in March, the biggest gain since February 2017. The rising prices appear to be rising in part thanks to a competitive labor marke


Minutes from their previous meeting showed that “all participants” expected both the economy to strengthen and inflation to rise “in coming months,” citing strong spending patterns and a consistently tight labor market. Consumer prices as measured by the personal consumption expenditures price index — the Fed’s preferred inflation gauge — jumped 2 percent year-on-year in March, the biggest gain since February 2017. The rising prices appear to be rising in part thanks to a competitive labor marke
US Treasury yields little changed as investors await Fed minutes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-05-22  Authors: thomas franck, silvia amaro
Keywords: news, cnbc, companies, minutes, yields, labor, economy, changed, await, inflation, higher, rising, yearonyear, fed, prices, little, market, rates, investors, treasury, wages


US Treasury yields little changed as investors await Fed minutes

The minutes offer Wall Street an idea of how the central bank is thinking about the strength of the economy, with many expecting that the Federal Open Market Committee will raise rates in June to stay ahead of creeping inflation.

Minutes from their previous meeting showed that “all participants” expected both the economy to strengthen and inflation to rise “in coming months,” citing strong spending patterns and a consistently tight labor market.

Consumer prices as measured by the personal consumption expenditures price index — the Fed’s preferred inflation gauge — jumped 2 percent year-on-year in March, the biggest gain since February 2017.

The rising prices appear to be rising in part thanks to a competitive labor market, with the Labor Department reporting that the unemployment rate fell to 3.9 percent in April, the lowest level since December 2000.

Tighter labor markets are usually considered a bellwether of labor input wages in classical economics: When workers are in higher demand, employers will typically have to pay more for their services. Wages, in turn, are often seen as a prelude to higher prices throughout the economy as people spend more as their paychecks grow.

Rising inflation, which threatens Treasury prices because it erodes the purchasing power of their fixed payments, puts upward pressure on rates.


Company: cnbc, Activity: cnbc, Date: 2018-05-22  Authors: thomas franck, silvia amaro
Keywords: news, cnbc, companies, minutes, yields, labor, economy, changed, await, inflation, higher, rising, yearonyear, fed, prices, little, market, rates, investors, treasury, wages


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US Treasurys tick lower as investors await jobless claims

U.S. government debt prices fell Thursday morning, as investors continued to monitor key economic data. The yield on the benchmark 10-year Treasury note, fell Thursday morning, as investors continued to monitor key economic data, while the yield on the 30-year Treasury bond was also higher at 3.2412 percent. A slew of economic data pushed the U.S. 10-year yield through to 3.1 percent Wednesday — its highest since July 2011. On Thursday, investors will be looking at jobless figures due at 8:30 a.


U.S. government debt prices fell Thursday morning, as investors continued to monitor key economic data. The yield on the benchmark 10-year Treasury note, fell Thursday morning, as investors continued to monitor key economic data, while the yield on the 30-year Treasury bond was also higher at 3.2412 percent. A slew of economic data pushed the U.S. 10-year yield through to 3.1 percent Wednesday — its highest since July 2011. On Thursday, investors will be looking at jobless figures due at 8:30 a.
US Treasurys tick lower as investors await jobless claims Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-05-17  Authors: silvia amaro
Keywords: news, cnbc, companies, treasurys, tick, claims, investors, higher, figures, morning, monitor, fell, treasury, yield, lower, await, jobless, economic, key


US Treasurys tick lower as investors await jobless claims

U.S. government debt prices fell Thursday morning, as investors continued to monitor key economic data.

The yield on the benchmark 10-year Treasury note, fell Thursday morning, as investors continued to monitor key economic data, while the yield on the 30-year Treasury bond was also higher at 3.2412 percent.

A slew of economic data pushed the U.S. 10-year yield through to 3.1 percent Wednesday — its highest since July 2011. On Thursday, investors will be looking at jobless figures due at 8:30 a.m. ET time. Higher-than-expected figures could prop up yields as market players might become even more confident on further interest rate hikes by the Federal Reserve.

In oil markets, Brent crude traded at around $79.35 a barrel on Thursday morning, up by 0.09 percent, while U.S. crude was around $71.66 a barrel, around 0.2 percent higher.


Company: cnbc, Activity: cnbc, Date: 2018-05-17  Authors: silvia amaro
Keywords: news, cnbc, companies, treasurys, tick, claims, investors, higher, figures, morning, monitor, fell, treasury, yield, lower, await, jobless, economic, key


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