European Shares Set For Soft Start As Bond Yields Spike

RTTNews | 551 days ago
European Shares Set For Soft Start As Bond Yields Spike

(RTTNews) - European stocks are seen opening broadly lower on Friday as U.S. Treasury yields continue to witness upward pressure on anxiety about how fast the Federal Reserve could cut interest rates.

According to analysts, sticky February U.S. consumer and producer price inflation figures would be enough to knock the U.S. central bank off course for rate cuts in June.

Asian markets traded lower, with Hong Kong's Hang Seng index falling more than 2 percent as the People's Bank of China held a key rate steady and drained cash from the banking system on a net basis, signaling a cautious approach of using its monetary policy to boost growth.

Also, data showed China's home prices dropped 1.4 percent year-on-year in February, marking the steepest drop in 13 months amid regulatory crackdowns.

The Japanese yen recovered some lost ground as investors kept a close eye on critical wage negotiations in the country and eyed next week's BOJ policy meeting.

Gold was marginally higher while oil dipped after seeing a significant uptick of 2 percent on Thursday to reach a four-month high on revised IEA forecasts suggesting a tighter market.

The Bank of England's inflation survey results and U.S. reports on import and exports prices, industrial production and consumer sentiment may garner investor attention later in the day.

U.S. stocks declined overnight as hotter-than-expected producer inflation print sent Treasury yields higher and cast doubt on a June rate cut.

The producer price inflation rose 0.6 percent in February from last month, outpacing the modest 0.3 percent gain forecasted by economists.

Retail sales numbers for February came in short of estimates while unemployment claims dipped unexpectedly during the preceding week, separate reports revealed.

The Dow dipped 0.4 percent, while the S&P 500 and the tech-heavy Nasdaq Composite both gave up around 0.3 percent.

European stocks closed broadly lower on Thursday amid increased anxiety about the outlook for interest rates.

The pan European STOXX 600 eased 0.2 percent. The German DAX slipped 0.1 percent and the U.K.'s FTSE 100 shed 0.4 percent while France's CAC 40 added 0.3 percent.

read more
Bank Of Canada Lowers Interest Rates By A Quarter Point

Bank Of Canada Lowers Interest Rates By A Quarter Point

After leaving interest rates unchanged for three straight meetings, the Bank of Canada on Wednesday announced its widely expected decision to lower rates by a quarter point. The Bank of Canada said it decided to reduce its target for the overnight rate by 25 basis points to 2.5 percent, with the Bank Rate at 2.75 percent and the deposit rate at 2.45 percent.
RTTNews | 42 minutes ago
U.S. Housing Starts Pull Back Much More Than Expected In August

U.S. Housing Starts Pull Back Much More Than Expected In August

After reporting significant increases in new residential construction in the U.S. over the two previous months, the Commerce Department released a report on Wednesday showing housing starts pulled back by much more than expected in the month of August. The Commerce Department said housing starts plummeted by 8.5 percent to an annual rate of 1.307 million in August.
RTTNews | 1h 42min ago
UK Inflation Unchanged At 3.8%

UK Inflation Unchanged At 3.8%

U.K. consumer price inflation remained sticky in August on higher food prices, official data showed Wednesday, ahead of the policy announcement by the Bank of England on Thursday. The consumer price index rose 3.8 percent on a yearly basis in August, the same rate of increase as seen in July, the Office for National Statistics reported. Inflation matched economists' expectations and stood well ab
RTTNews | 2h 53min ago
U.S. Housing Starts Plunge 8.5% In August, Much More Than Expected

U.S. Housing Starts Plunge 8.5% In August, Much More Than Expected

After reporting significant increases in new residential construction in the U.S. over the two previous months, the Commerce Department released a report on Wednesday showing housing starts pulled back by much more than expected in the month of August.
RTTNews | 3h 25min ago
Bank Indonesia Cuts Rate Unexpectedly

Bank Indonesia Cuts Rate Unexpectedly

Indonesia's central bank reduced its key interest rate unexpectedly to the lowest level since 2022 to stimulate economic growth and also raised expectations for more reductions. The Bank Indonesia board, governed by Perry Warjiyo, decided to cut the BI rate by 25 basis points to 4.75 percent. Markets anticipated the central bank to hold the rate this time amid political unrest.
RTTNews | 4h 24min ago
FTSE 100 Modestly Higher In Cautious Trade

FTSE 100 Modestly Higher In Cautious Trade

UK stocks are up in positive territory a little past noon on Wednesday with investors digesting the nation's inflation data and looking ahead to the Federal Reserve's rate decision, due on Wednesday, and the Bank of England's policy announcement due later today.
RTTNews | 4h 35min ago