Dollar holds steady, pound hits 27-month low

The dollar was little changed against most major currencies on Wednesday, pausing after prior day’s gains tied to stronger-than-forecast retail sales data, while the pound fell to 27-month lows versus the greenback on jitters about a no-deal Brexit. The euro fell to $1.120 earlier Wednesday before clawing back up to $1.1227. The pound fell to a fresh 27-month low of $1.2382 before rebounding to $1.2429. An index that tracks the dollar against the euro, yen, pound and three other currencies was d


The dollar was little changed against most major currencies on Wednesday, pausing after prior day’s gains tied to stronger-than-forecast retail sales data, while the pound fell to 27-month lows versus the greenback on jitters about a no-deal Brexit. The euro fell to $1.120 earlier Wednesday before clawing back up to $1.1227. The pound fell to a fresh 27-month low of $1.2382 before rebounding to $1.2429. An index that tracks the dollar against the euro, yen, pound and three other currencies was d
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Dollar holds steady, pound hits 27-month low

The dollar was little changed against most major currencies on Wednesday, pausing after prior day’s gains tied to stronger-than-forecast retail sales data, while the pound fell to 27-month lows versus the greenback on jitters about a no-deal Brexit.

The euro hit a one-week low against the dollar and towards the lower end of this year’s trading range, weighed down by expectations of easing from the European Central Bank and investors’ preference for the higher-yielding U.S. currency.

“It’s been a quiet midweek night of trade in FX with major holding steady around key levels after selling off against the dollar yesterday,” Boris Schlossberg, managing director of FX strategy at BK Asset Management wrote in a research note.

The euro fell to $1.120 earlier Wednesday before clawing back up to $1.1227.

The dollar was little changed at 108.08 yen. The pound fell to a fresh 27-month low of $1.2382 before rebounding to $1.2429. It also hit a fresh six-month low against the euro at 90.51 pence.

An index that tracks the dollar against the euro, yen, pound and three other currencies was down 0.22% at 97.19 after touching a one-week high.

The greenback has strengthened since late June in response to better-than-expected data on U.S. jobs, inflation and retail sales.

Its rise has been limited by firming signals from Federal Reserve officials of a possible rate decrease perhaps in two weeks to counter risk from global trade tensions and sluggish price growth at home. U.S. interest rates futures implied traders fully expect the Fed to cut rates at its upcoming policy meeting on July 30-31 with a 35% chance for a half-point decrease, CME Group’s FedWatch tool showed.

Fed policy-makers will release an assessment of the economy with its latest Beige Book at 2 p.m. (1800 GMT). Moreover, the International Monetary Fund on Wednesday said the greenback was overvalued by 6% to 12%, based on near-term economic fundamentals, while the euro, Japan’s yen and China’s yuan were seen as broadly in line with fundamentals.

Wednesday’s data on euro zone consumer price inflation, which was revised up to 1.3% year-on-year in June, failed to boost the euro.

ECB board member Benoit Coeure said the ECB was ready to act if necessary to help inflation in the euro zone move towards its aim of close to but below 2%. Nearly two ECB interest rate cuts of 10 basis points are priced in by money markets for 2019.


Company: cnbc, Activity: cnbc, Date: 2019-07-17
Keywords: news, cnbc, companies, low, pound, greenback, steady, hits, 27month, dollar, inflation, holds, yen, data, zone, euro, fell


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Dollar rises on upbeat retail sales data, euro falls

The greenback strengthened versus the euro due to data that pointed to a deterioration in confidence among German investors prompted by the trade conflict between China and the United States and political tensions with Iran. The U.S. Commerce Department said retail sales rose 0.4% in June, exceeding the 0.1% increase forecast among analysts polled. Traders also expect the European Central Bank to move policy rates deeper into negative later this year as the euro zone economy has been struggling.


The greenback strengthened versus the euro due to data that pointed to a deterioration in confidence among German investors prompted by the trade conflict between China and the United States and political tensions with Iran. The U.S. Commerce Department said retail sales rose 0.4% in June, exceeding the 0.1% increase forecast among analysts polled. Traders also expect the European Central Bank to move policy rates deeper into negative later this year as the euro zone economy has been struggling.
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Company: cnbc, Activity: cnbc, Date: 2019-07-16
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Dollar rises on upbeat retail sales data, euro falls

The dollar rose against a basket of currencies on Tuesday as surprisingly strong growth in U.S. retail sales in June soothed jitters about the American economy and trimmed expectations the Federal Reserve may embark on a deep interest rate cut later this month.

The greenback strengthened versus the euro due to data that pointed to a deterioration in confidence among German investors prompted by the trade conflict between China and the United States and political tensions with Iran.

The British pound fell to six-month lows against the euro and a 27-month trough versus the dollar as Conservative Party members Boris Johnson and Jeremy Hunt, vying to be Britain’s next prime minister, were seen to be toughening their line on Brexit negotiations.

Investors are worried about the rising risk of a no-deal exit from the European Union.

“An improved U.S. economic outlook should provide some fuel for further dollar gains,” said Win Thin, global head of currency strategy at Brown Brothers Harriman & Co.

An index that tracks the dollar against a group of six currencies was up 0.45% at 97.38 after touching 97.361, the highest in four sessions.

Recent U.S. economic data have on balance beat expectations. Concerns about the drag from global trade disputes and sluggish inflation among developed economies, however, have led policymakers to consider cutting interest rates and/or embarking on bond purchases to boost investor confidence and business activities.

The U.S. Commerce Department said retail sales rose 0.4% in June, exceeding the 0.1% increase forecast among analysts polled.

Last week, Fed Chairman Jerome Powell hinted in testimonies before Congress that the central bank was ready to “act as appropriate” to support the current U.S. expansion, which is the longest on record. U.S. interest rate futures implied traders fully expect the Fed to lower key lending rates by at least a quarter point at its July 30-31 policy meeting, according to CME Group’s FedWatch program.

Traders also expect the European Central Bank to move policy rates deeper into negative later this year as the euro zone economy has been struggling.

Earlier Tuesday, the ZEW Institute said its monthly survey showed economic sentiment among German investors fell to -24.5 in July from -21.1 the month before.

The euro was down 0.38% at $1.1215 and 0.09% lower at 121.35 yen. The single currency, however, was up 0.54% at 90.43 pence after touching a six-month peak at 90.43 earlier Tuesday.

Sterling fell below $1.24 for the first time since April 2017. It was 0.91% lower at $1.2403.


Company: cnbc, Activity: cnbc, Date: 2019-07-16
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Dollar modestly higher in thin summer trading; upside limited

The dollar was little changed to slightly higher on Monday in thin summer trading, with the greenback’s upside potential hampered by expectations the Federal Reserve will cut interest rates at next week’s policy meeting. Investors expect the Fed to reduce its key rate by 25 basis points and make another cut in September. Money markets have priced in an ECB rate cut of 10 basis points in September and another one in March. In mid-morning trading, an index that tracks the dollar against a basket o


The dollar was little changed to slightly higher on Monday in thin summer trading, with the greenback’s upside potential hampered by expectations the Federal Reserve will cut interest rates at next week’s policy meeting. Investors expect the Fed to reduce its key rate by 25 basis points and make another cut in September. Money markets have priced in an ECB rate cut of 10 basis points in September and another one in March. In mid-morning trading, an index that tracks the dollar against a basket o
Dollar modestly higher in thin summer trading; upside limited Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15
Keywords: news, cnbc, companies, trading, modestly, upside, yuan, cut, limited, dovish, dollar, central, rate, fed, summer, euro, markets, higher


Dollar modestly higher in thin summer trading; upside limited

The dollar was little changed to slightly higher on Monday in thin summer trading, with the greenback’s upside potential hampered by expectations the Federal Reserve will cut interest rates at next week’s policy meeting.

Investors expect the Fed to reduce its key rate by 25 basis points and make another cut in September. Foreign exchange markets were quiet on Monday and volatility low ahead of major central bank policy decisions next week.

The European Central Bank also holds a meeting next week, with investors expecting a dovish statement. Money markets have priced in an ECB rate cut of 10 basis points in September and another one in March.

The ECB’s meeting on July 25 may reinforce those expectations. Forecasts for dovish moves by both the Fed and ECB have kept euro/dollar stuck in a narrow range for weeks.

“Until we get the news out of the G7 central banks later in this month and later into the summer, we are likely to remain rather range-bound and relatively quiet,” said Brad Bechtel, managing director, Jefferies in New York. “Even then, we all know what to expect, more or less.”

In mid-morning trading, an index that tracks the dollar against a basket of six other major currencies was slightly higher at 96.95.

The dollar was little changed versus the yen at 107.865 .

The euro was flat at $1.1255, trading within the recent range of $1.14 to $1.11.

Investors are more bearish on the euro, since U.S. Treasury yields look set to remain among the highest in developed markets despite future Fed rate cuts, analysts say.

Some analysts, however, are surprised the euro is not gaining given that the market has priced in Fed easing.

“For the world’s most-traded and least-exciting currency pair, a dovish Fed, a weak-dollar president and a hint of global economic optimism, ‘ought’ to mean euro/dollar rallies,” said Kit Juckes, FX strategist at Societe Generale. “If it (the euro) can’t stage a move back to $1.14 in the next week or two, what on earth could make it rally?”

Elsewhere, the Australian dollar, the currency most sensitive to Chinese news, hit a more than one-week high on stronger-than-expected economic data from China. China’s industrial output rebounded in June from a 17-year low in May, while June retail sales surged 9.8% from a year earlier.

The Aussie was last up 0.1% at US$0.7031 against the U.S. dollar, while China’s offshore yuan was up 0.1% at 6.8742 yuan per dollar.


Company: cnbc, Activity: cnbc, Date: 2019-07-15
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You can rent Jackie Kennedy Onassis’ former yacht for nearly $630,00 a week — take a look

For 560,000 euro (approximately $627,505) a week, guests can charter the “Christina O,” a yacht once owned by Greek shipping magnate Aristotle Onassis and Jacqueline Kennedy Onassis. Valef Yachts, a charter company based in Greece, also offers it for a daily rate: 90,000 euro (approximately $100,850) per day in July and August. Aristotle Onassis, Jackie Kennedy Onassis’ second husband, named the boat “Christina” after his daughter, according to the company, and a “family friend” renamed the boat


For 560,000 euro (approximately $627,505) a week, guests can charter the “Christina O,” a yacht once owned by Greek shipping magnate Aristotle Onassis and Jacqueline Kennedy Onassis. Valef Yachts, a charter company based in Greece, also offers it for a daily rate: 90,000 euro (approximately $100,850) per day in July and August. Aristotle Onassis, Jackie Kennedy Onassis’ second husband, named the boat “Christina” after his daughter, according to the company, and a “family friend” renamed the boat
You can rent Jackie Kennedy Onassis’ former yacht for nearly $630,00 a week — take a look Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: jimmy im
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You can rent Jackie Kennedy Onassis' former yacht for nearly $630,00 a week — take a look

For 560,000 euro (approximately $627,505) a week, guests can charter the “Christina O,” a yacht once owned by Greek shipping magnate Aristotle Onassis and Jacqueline Kennedy Onassis. Valef Yachts, a charter company based in Greece, also offers it for a daily rate: 90,000 euro (approximately $100,850) per day in July and August. It costs 80,000 euro (about $89,642) per day in other months. Included in the price for a sail on the Christina O? A staff of 38 crew, according to a representative from Valef Yachts. Aristotle Onassis, Jackie Kennedy Onassis’ second husband, named the boat “Christina” after his daughter, according to the company, and a “family friend” renamed the boat “Christina O” following Aristotle Onassis’ death.

Stef Bravin

The yacht is 325 feet long and has 17 staterooms, a 40-guest dining room, a library, a piano and a swimming pool, according to the company. There are also sunbathing decks, as well as an outdoor bar.

Stef Bravin

It can sleep up to 36 guests and can host 157 people on board for events and parties.

Stef Bravin

The main suite is called the “Onassis Suite” and has a hot tub and a lounge with an en-suite library.

Stef Bravin

The suite has a marble fireplace and an original Renoir painting, according to the charter company.

Stef Bravin

Stef Bravin

There’s an outdoor deck with umbrellas and sunbeds.

Stef Bravin

In 1954, Onassis bought the boat for $34,000, according to Valef Yachts.

Stef Bravin


Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: jimmy im
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European stocks close flat following euro zone, China data; Thomas Cook plunges 60%

European stocks closed flat on Friday as investors reacted to new Chinese trade data and euro zone industrial production figures. The pan-European Stoxx 600 was in positive territory at the closing bell, chemicals stocks leading the gains with a 1.2% climb while autos recovered from an early fall to trade 0.8% higher. An official report Friday revealed that China’s exports fell less than expected in June, with dollar-denominated exports falling 1.3% from the same period a year ago. EU statistics


European stocks closed flat on Friday as investors reacted to new Chinese trade data and euro zone industrial production figures. The pan-European Stoxx 600 was in positive territory at the closing bell, chemicals stocks leading the gains with a 1.2% climb while autos recovered from an early fall to trade 0.8% higher. An official report Friday revealed that China’s exports fell less than expected in June, with dollar-denominated exports falling 1.3% from the same period a year ago. EU statistics
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Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: chloe taylor elliot smith, chloe taylor, elliot smith
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European stocks close flat following euro zone, China data; Thomas Cook plunges 60%

European stocks closed flat on Friday as investors reacted to new Chinese trade data and euro zone industrial production figures.

The pan-European Stoxx 600 was in positive territory at the closing bell, chemicals stocks leading the gains with a 1.2% climb while autos recovered from an early fall to trade 0.8% higher. Health care was the worst performing sector, shedding 1.3%.

An official report Friday revealed that China’s exports fell less than expected in June, with dollar-denominated exports falling 1.3% from the same period a year ago. Economists polled by Reuters had expected a 2% decline on the back of the ongoing trade war with the U.S.

Euro zone industrial production rose more than expected in May, data showed on Friday, offsetting declines over the past two months and defying gloomy forecasts caused by prolonged trade tensions. EU statistics agency Eurostat said euro zone factory output grew by 0.9% in May on the month, exceeding modest market expectations of a 0.2% rise.

Daimler stock was down 0.6% by the end of the session, after the German carmaker warned investors to expect a second-quarter loss before interest and taxes of 1.6 billion euros ($1.8 billion) after a 2.6 billion euro profit posted in the same period last year.

Meanwhile, Deutsche Bank shares received a welcome reprieve, rising 2.5% after UBS became the first broker to upgrade the German lender’s stock following a mass restructuring effort.

Investors are also processing mixed messages from the U.S. Federal Reserve after Chairman Jerome Powell kept the focus Thursday on global risks which could trigger a rate cut this month, while colleagues from regional Fed districts painted a rosier picture of continued U.S. growth and a solid business outlook.


Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: chloe taylor elliot smith, chloe taylor, elliot smith
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Rate cut bets keeps dollar on track for biggest weekly drop in three weeks

Against a basket of other currencies, the dollar fell 0.1% to 96.94 and was on track for its biggest weekly drop in three weeks. The core U.S. consumer price index, excluding food and energy, rose 0.3% in June, the largest increase since January 2018, data on Thursday showed. Other currencies which benefited from a weaker dollar were in markets whose central banks signaled a relatively confident outlook to interest rates. Sweden’s crown also benefited from a relatively optimistic assessment of i


Against a basket of other currencies, the dollar fell 0.1% to 96.94 and was on track for its biggest weekly drop in three weeks. The core U.S. consumer price index, excluding food and energy, rose 0.3% in June, the largest increase since January 2018, data on Thursday showed. Other currencies which benefited from a weaker dollar were in markets whose central banks signaled a relatively confident outlook to interest rates. Sweden’s crown also benefited from a relatively optimistic assessment of i
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Rate cut bets keeps dollar on track for biggest weekly drop in three weeks

The dollar fell for a third consecutive day on Friday as stronger-than-expected U.S. inflation data failed to shake convictions that the Federal Reserve will start cutting interest rates at a policy meeting later this month.

Against a basket of other currencies, the dollar fell 0.1% to 96.94 and was on track for its biggest weekly drop in three weeks.

The core U.S. consumer price index, excluding food and energy, rose 0.3% in June, the largest increase since January 2018, data on Thursday showed.

The reading pushed U.S. Treasury yields higher, but money markets still indicated one rate cut at the end of July and a cumulative 64 basis points in cuts by the end of 2019.

“Cutting interest rates when inflation data is weakening makes sense, but signalling a dovish stance when inflation is rising is a bit weird and suggests there are political pressures weighing on the Fed,” said Ulrich Leuchtmann, the head of currency research at Commerzbank.

The dollar’s weakness revived carry trades, where hedge funds borrow in low-yielding currencies such as the Swiss franc and the euro to purchase higher-yielding ones such as the Australian or New Zealand dollars.

On Friday, the NZ dollar gained 0.3% to $0.6665.

Other currencies which benefited from a weaker dollar were in markets whose central banks signaled a relatively confident outlook to interest rates.

The Canadian dollar was one such beneficiary: the loonie rallied to a 10-month high versus the U.S. dollar after Canada’s central bank said this week it had no intention of easing monetary policy even as it highlighted the risks that trade wars posed to the global economy.

Higher oil prices also helped the Canadian dollar.

Sweden’s crown also benefited from a relatively optimistic assessment of its economic outlook after minutes of the central bank’s policy meeting.

The euro trimmed earlier gains after European Central Bank Governing Council member Ignazio Visco said on Friday the ECB will need to adopt further expansionary measures if the euro zone economy does not pick up and will consider its options “in the coming weeks”.

The single currency was flat at $1.1258, below an intraday high of $1.1275 in early London trading.

Market attention will be focused on comments by Chicago Fed President Charles Evans later on Friday and New York Fed President John Williams on Monday which will provide a chance to gauge how dovish the U.S. central bank will be.

“If these Fed officials are not as dovish as (Federal Reserve Chair Jerome) Powell, and if the New York Fed’s manufacturing survey on Monday proves stronger than forecast, they could show that the dollar weakening in response to Powell’s congressional testimony was overdone,” said Masafumi Yamamoto, chief forex strategist at Mizuho Securities.

Powell indicated again on Thursday that an interest rate cut from the U.S. central bank is likely at its next meeting later this month as businesses slow investment due to trade disputes and a global growth slowdown.


Company: cnbc, Activity: cnbc, Date: 2019-07-12
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IMF sees prolonged anaemic growth in euro zone, urges ECB stimulus

The euro zone economy faces rising risks stemming from trade tensions, Brexit and Italy, the International Monetary Fund said on Thursday in an annual report, where it also backed the European Central Bank’s (ECB) plans for fresh stimulus. The report also said the euro remained slightly undervalued despite having appreciated last year, confirming a Reuters report last month. The IMF’s forecasts were slightly better than those released on Wednesday by the European Commission, the EU’s executive a


The euro zone economy faces rising risks stemming from trade tensions, Brexit and Italy, the International Monetary Fund said on Thursday in an annual report, where it also backed the European Central Bank’s (ECB) plans for fresh stimulus. The report also said the euro remained slightly undervalued despite having appreciated last year, confirming a Reuters report last month. The IMF’s forecasts were slightly better than those released on Wednesday by the European Commission, the EU’s executive a
IMF sees prolonged anaemic growth in euro zone, urges ECB stimulus Cached Page below :
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IMF sees prolonged anaemic growth in euro zone, urges ECB stimulus

The euro zone economy faces rising risks stemming from trade tensions, Brexit and Italy, the International Monetary Fund said on Thursday in an annual report, where it also backed the European Central Bank’s (ECB) plans for fresh stimulus.

In the report, its last on the euro zone before the Fund’s managing director Christine Lagarde leaves in November to head the ECB, the IMF said the bank’s plans to keep monetary policy accommodative were “vital” as the currency bloc faces “a prolonged period of anaemic growth and inflation”.

The report also said the euro remained slightly undervalued despite having appreciated last year, confirming a Reuters report last month.

It urged countries with large trade surpluses, including Germany and the Netherlands, to invest more to help rebalance the exchange rate.

Output growth in the 19-nation currency bloc will slow to 1.3% this year from 1.9% in 2018, the Fund said, rebounding to 1.6% in 2020.

The IMF’s forecasts were slightly better than those released on Wednesday by the European Commission, the EU’s executive arm, which saw euro zone growth at 1.2% this year and 1.4% in 2020.

However, the Washington-based Fund sees growing risks from global trade tensions, uncertainty caused by Britain’s unclear path to leave the EU and Italy’s vulnerability caused by its high debt, of which a large portion is held by domestic banks.

Although yields on Italy’s bonds have recently fallen, the report said, a change in market sentiment could not be ruled out. That could force Italy’s anti-austerity government to adopt a “sharp fiscal tightening” even if growth slows, with risks of spillovers into other euro zone countries, the Fund said, confirming a Reuters report last month

The IMF also predicted inflation to remain far off the ECB’s close-to-2% target at least until 2022, and forecast a 1.3% rate this year, in line with ECB estimates.

“The undershooting of the inflation objective calls for prolonged monetary accommodation,” the Fund said, welcoming the central bank’s plans to maintain its easy-money policy.

The Fund raised doubts about possible plans for a tiered deposit rate, which would lower the charge banks pay on some of their excess cash.

“A regime of tiering (..) would have a very small impact on aggregate bank profitability and a questionable impact on credit conditions,” the report said, adding that the costs of negative rates were likely outweighed by indirect positive effects.

In case of a further worsening of inflation expectations, the IMF said that more accommodation may be necessary, and could include a new asset purchase program.

The new purchases would need to maintain the same distribution across euro zone states and could be broadened to a larger set of eligible assets, the fund said.

Whereas “there may be only limited room to cut rates,” the IMF did not rule out new stimulus measures, “such as new, cheaper liquidity facilities for banks.”

The report said the ECB’s new round of cheap multi-year loans for banks, known as TLTRO 3, was a good move, but said it also risked expanding banks’ exposure to their home country debt.

To prevent this, it said, “it is appropriate for the ECB to shorten the maturity of the new TLTROs and to offer less generous pricing terms than on TLTRO II”.

In its report, the Fund also called for centralised supervision of money-laundering risks at banks in the euro zone, after a string of cases that exposed national shortfalls in countering financial crime.


Company: cnbc, Activity: cnbc, Date: 2019-07-11
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Bond yields are falling to record lows as investors pull back from risky assets

Government bond yields in most major economies worldwide have been flirting with all-time lows in the last few days, indicating that investors are wary of an impending recession. Bond yields move inversely to their prices. Meanwhile, French 10-year bond yields had fallen to -0.12%, Belgian 10-year yields plunged below zero for the first time ever, and Italian 10-year bond yields dropped to a 14-month low of 1.67%. Capital Economics’ Chief Markets Economist John Higgins projected in a note Tuesda


Government bond yields in most major economies worldwide have been flirting with all-time lows in the last few days, indicating that investors are wary of an impending recession. Bond yields move inversely to their prices. Meanwhile, French 10-year bond yields had fallen to -0.12%, Belgian 10-year yields plunged below zero for the first time ever, and Italian 10-year bond yields dropped to a 14-month low of 1.67%. Capital Economics’ Chief Markets Economist John Higgins projected in a note Tuesda
Bond yields are falling to record lows as investors pull back from risky assets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-04  Authors: elliot smith
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Bond yields are falling to record lows as investors pull back from risky assets

Government bond yields in most major economies worldwide have been flirting with all-time lows in the last few days, indicating that investors are wary of an impending recession. German and French 10-year bond yields hit record lows this week, both falling into sub-zero territory after comments from European Central Bank (ECB) official and Dutch central bank chief Klaas Knot buoyed expectations for monetary policy easing, with the aim of boosting inflation in the euro zone. Yields were then pushed down further by bets that potential ECB chief Christine Lagarde will maintain a dovish stance to buoy the euro zone economy. Bond yields move inversely to their prices. On Thursday, the yield on the 10-year German bund, an important benchmark for European fixed income assets and viewed as a safe haven for investors, was down at -0.398%. Meanwhile, French 10-year bond yields had fallen to -0.12%, Belgian 10-year yields plunged below zero for the first time ever, and Italian 10-year bond yields dropped to a 14-month low of 1.67%. In times of uncertainty and challenging market environment, investors tend to move their investments from perceived riskier assets into safe havens like gold and government bonds. The move highlights ongoing uncertainty for the euro zone’s economy fueled by a slowdown in Germany, growing unease around Brexit and global trade tensions.

Capital Economics’ Chief Markets Economist John Higgins projected in a note Tuesday that even with euro zone bond yields at all time lows, there is still headroom for the rally to continue. Higgins expects the ECB to cut its deposit rate by 10 basis points to -0.5% in September and announce a continuation of net asset purchases in October, while refusing to rule out further quantitative easing (QE). “Overall, we suspect that investors are yet to price in the size of both corporate and government bond purchases that we are anticipating,” Higgins said. Capital Economics analysts are forecasting that the 10-year bund yield will end the year down around -0.5% and penciled in similar-sized falls across other euro zone “core” government bonds.

Fears of a slowdown

Fears of an economic slowdown in Europe were exacerbated after the U.S. government on Monday threatened to impose tariffs on $4 billion of additional euro zone goods in a long-running dispute over aircraft subsidies. Subsequent events on Wednesday, like the nomination of Lagarde to lead the ECB, only compounded the jitters. Collective PMI (Purchasing Managers’ Index) surveys then indicated that the U.K. economy may have slipped into a contraction for the first time since late 2012.

Stateside, the U.S. benchmark 10-year Treasury yield has fallen back below 2%, trading at 1.9532% on Thursday. This despite a brief break higher on the back of a trade truce agreed between the U.S. and China. Most analysts are also now pricing in two rate cuts from the U.S. Federal Reserve this year. Fed Chairman Jerome Powell has indicated that at least one rate cut may be coming if conditions continue to weaken. Chief among the Fed’s concerns are slowing global growth, inflation that persistently falls short of the Fed’s 2% target, and the ramifications of tariffs the U.S. and its trading partners, particularly China, have levied on each other. Draghi also recently hinted at ECB easing if euro zone inflation did not pick up sufficiently. Both central bank bosses are confronted by plummeting inflation expectations, sub-par growth and geopolitical paralysis. Major central banks have taken a U-turn from previously hawkish policy on the back of slow growth, low inflation and political uncertainty, leading investors to steer clear of risky and volatile assets. The Fed, the Bank of England and the ECB all ruled out rate hikes earlier this year. The latter slashed its growth forecasts earlier this year. The euro zone economy has relied heavily on exports, but with its German engine room showing serious industrial weakness, Italy entering recession and a Brexit stalemate, all compounded by the U.S.-China trade war, investors have grown fearful. Market volatility peaked in May as the trade war between the world’s two largest economies underwent various phases of escalation and tariff impositions, sparking multiple quickfire sell-offs of risk assets.

The outlook


Company: cnbc, Activity: cnbc, Date: 2019-07-04  Authors: elliot smith
Keywords: news, cnbc, companies, record, falling, pull, yields, lows, zone, 10year, trade, inflation, investors, ecb, rate, euro, risky, bond, assets


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10-year Treasury yield drops to lowest level since 2016, dipping further below 2%

The yield on the benchmark 10-year Treasury note fell to its lowest level since November 2016 on Wednesday, continuing its slide below 2% on expectations central banks around the world would respond to a slowing global economy with more monetary stimulus. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.95%, off a low of 1.939% hit in overnight trading. The rate on the 3-month Treasury bill held steady at 2.205%, keeping a portion of the


The yield on the benchmark 10-year Treasury note fell to its lowest level since November 2016 on Wednesday, continuing its slide below 2% on expectations central banks around the world would respond to a slowing global economy with more monetary stimulus. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.95%, off a low of 1.939% hit in overnight trading. The rate on the 3-month Treasury bill held steady at 2.205%, keeping a portion of the
10-year Treasury yield drops to lowest level since 2016, dipping further below 2% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: thomas franck
Keywords: news, cnbc, companies, level, lagarde, 2016, yield, lowest, dipping, zone, european, trump, treasury, euro, 10year, drops, world, lower


10-year Treasury yield drops to lowest level since 2016, dipping further below 2%

The yield on the benchmark 10-year Treasury note fell to its lowest level since November 2016 on Wednesday, continuing its slide below 2% on expectations central banks around the world would respond to a slowing global economy with more monetary stimulus.

At around 12:09 p.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.95%, off a low of 1.939% hit in overnight trading. The rate on the 3-month Treasury bill held steady at 2.205%, keeping a portion of the yield curve inverted.

Traders around the world snapped up government debt after the European Council on Tuesday nominated Christine Lagarde to head the European Central Bank. Many viewed the choice of Lagarde as a signal that euro zone rates will remain low for the foreseeable future as the ECB tries to foster inflation and GDP growth in the region.

Europe has seen markedly lower GDP growth relative to that of the U.S. in recent years. Economic forecasts have slumped further in recent months amid persistent tariff pressure from the Trump administration and cooler sentiment from manufacturers. The German 10-year bund fell to its lowest level in recorded history on Wednesday at -0.399%.

“The appointment of Christine Lagarde is certainly giving more adrenaline to the epic bubble of negative yielding bonds but the euro isn’t really moving,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, wrote in an email.

“It remains quite astonishing to see what is going on in European bond yields, to say the least. God help us when this unwinds one day,” he added.

Fears of an economic slowdown in Europe were also exacerbated after the U.S. government on Monday threatened to impose tariffs on $4 billion of additional euro zone goods in a long-running dispute over aircraft subsidies.

The U.S. Trade Representative’s office released a list of products — including Italian cheese, olives and whiskey — that could be targeted with new duties on top of those implemented in April. The new wave of proposed duties comes amid a 15-year dispute at the World Trade Organization over aircraft subsidies given to U.S. aerospace manufacturer Boeing and its European rival, Airbus.

Treasury also caught a bid after President Donald Trump picked two nominees likely to support easier monetary policy at the Federal Reserve. Both of Trump’s intended nominees, Christopher Waller and Judy Shelton, are thought to be advocates of lower rates.

Lower rates could give a boost to job creation, which posted another rough month in June, according to a Wednesday report from ADP and Moody’s Analytics. Private companies added just 102,000 jobs last month, well short of the meager 135,000 estimate. That followed a weak May print of just 41,000 and precede’s Friday’s employment report from the Labor Department.

The Institute for Supply Management’s non-manufacturing index and Services PMI for June and factory orders for May will follow slightly later in the session.


Company: cnbc, Activity: cnbc, Date: 2019-07-03  Authors: thomas franck
Keywords: news, cnbc, companies, level, lagarde, 2016, yield, lowest, dipping, zone, european, trump, treasury, euro, 10year, drops, world, lower


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Dollar little changed awaiting G20 trade news

It remains unclear whether U.S. President Donald Trump and Chinese President Xi Jinping will agree on a truce when they meet at the G20, or escalate their trade conflict further, leaving investors unsure about how to trade the dollar. Still, markets are hoping that a meeting between the leaders of the two largest economies will bring progress on trade, despite fraught negotiations. However, any falls in the dollar are unlikely to become sustained and so “the euro at $1.14 is a sell,” Rochester s


It remains unclear whether U.S. President Donald Trump and Chinese President Xi Jinping will agree on a truce when they meet at the G20, or escalate their trade conflict further, leaving investors unsure about how to trade the dollar. Still, markets are hoping that a meeting between the leaders of the two largest economies will bring progress on trade, despite fraught negotiations. However, any falls in the dollar are unlikely to become sustained and so “the euro at $1.14 is a sell,” Rochester s
Dollar little changed awaiting G20 trade news Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-28
Keywords: news, cnbc, companies, dollar, strategist, data, changed, yen, little, united, g20, euro, awaiting, expectations, rate, week, trade


Dollar little changed awaiting G20 trade news

The dollar treaded water on Friday ahead of a meeting between the United States and China at the Group of 20 summit in Japan, shaking off light pressure from U.S. economic data that did nothing to derail speculation about a July interest rate cut.

The core U.S. personal consumption expenditure price index rose 0.2% in May, as expected, reinforcing investor expectations that the Federal Reserve will cut rates by at least 25 basis points at the next meeting.

As result, the dollar reaction to the data was limited and the euro was trading late in the day at $1.1372, 0.04% firmer against the greenback on the day.

“In the big themes today, the data doesn’t change the July cut,” said Kenneth Broux, head of corporate research at Societe Generale.

The euro was on track for its biggest monthly gain since February 2018 on the back of broad-based dollar weakness, although it was off 0.9% for the first half of the year.

It remains unclear whether U.S. President Donald Trump and Chinese President Xi Jinping will agree on a truce when they meet at the G20, or escalate their trade conflict further, leaving investors unsure about how to trade the dollar.

Still, markets are hoping that a meeting between the leaders of the two largest economies will bring progress on trade, despite fraught negotiations.

“I’m personally quite pessimistic on any deal being made,” said Jordan Rochester, G10 forex strategist at Nomura. However, any falls in the dollar are unlikely to become sustained and so “the euro at $1.14 is a sell,” Rochester said.

While inflation expectations in the United States and Europe have declined in recent weeks, as measured by forward-starting swaps, U.S. gauges have stabilised after the Fed opened the door to rate cuts last week.

In comparison, policy interest rates in Europe are already in negative territory and Europe’s most widely watched measure of inflation expectations – the five-year forward rate – has started declining again. “The elbow-room for the ECB to ease policy is far more limited than the (U.S.) Fed and that is weighing on the euro,” said Esther Reichelt, FX strategist at Commerzbank.

The dollar index, which measures the U.S. currency against six of its peers, was at 96.15, little changed on the week. The dollar traded at 107.76 yen, little changed on the day but on course for a 0.4% gain this week as the greenback mounted a recovery from a five-month low of 106.77 yen reached on Tuesday.


Company: cnbc, Activity: cnbc, Date: 2019-06-28
Keywords: news, cnbc, companies, dollar, strategist, data, changed, yen, little, united, g20, euro, awaiting, expectations, rate, week, trade


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