European Shares Seen Up As Bond Yields Retreat On China Deflation Worries

RTTNews | 666 days ago
European Shares Seen Up As Bond Yields Retreat On China Deflation Worries

(RTTNews) - European stocks may open on a positive note Wednesday as global bond yields retreated on signs of increasing deflationary pressures in China.

Government data showed China's consumer price inflation fell by 0.3 percent year-on-year in July, slipping into deflation for the first time in more than two years.

Factory gate prices extended declines for a 10th consecutive month, down 4.4 percent from a year earlier after a 5.4 percent drop the previous month.

The dollar index also weakened after Fed Bank of Philadelphia President Patrick Harker indicated that the U.S. central bank could be at the end of its current rate-hiking cycle.

Harker also noted that the Fed will start to bring interest rates down sometime probably next year. Separately, his Richmond counterpart Thomas Barkin argued that there is still time for Fed officials to study data before deciding whether a rate rise in September would be appropriate.

Asian markets traded mixed as hopes for more stimulus measures from the Chinese government offset worries about the U.S. banking system.

Gold edged higher on dollar weakness ahead of U.S. inflation readings that could influence the Fed's rate outlook.

Oil prices slipped after ending Tuesday's choppy session higher due to tensions between Ukraine and Russia over blocked ports.

U.S. stocks ended firmly in the red overnight as China trade data disappointed and Moody's cut the credit ratings for 10 smaller and midsized lenders and put the credit ratings of six large U.S. banks under review for a possible downgrade.

The Dow dipped half a percent, the S&P 500 shed 0.4 percent and the tech-heavy Nasdaq Composite gave up 0.8 percent.

European stocks fell notably on Tuesday, with banks leading losses after Italy approved a 40 percent windfall tax on lenders.

The pan European STOXX 600 eased 0.2 percent. The German DAX lost 1.1 percent, France's CAC 40 fell 0.7 percent and the U.K.'s FTSE 100 declined 0.4 percent.

read more
Canadian Market Modestly Higher In Cautious Trade

Canadian Market Modestly Higher In Cautious Trade

Canadian stocks are turning in a mixed performance on Thursday with investors largely making cautious moves, looking ahead to the crucial U.S. and Canadian jobs data due on Friday.
RTTNews | 51 minutes ago
U.S. Labor Productivity Slumps 1.5% In Q1, Much More Than Previously Estimated

U.S. Labor Productivity Slumps 1.5% In Q1, Much More Than Previously Estimated

Revised data released by the Labor Department on Thursday showed U.S. labor productivity tumbled by much more than previously estimated in the first quarter of 2025. The Labor Department said labor productivity slumped by 1.5 percent in the first quarter compared to the previously reported 0.8 percent decline. Economists had expected the decrease by labor productivity to be revised to 0.7 percent.
RTTNews | 3h 21min ago
U.S. Trade Deficit Narrows Substantially In April As Imports Plummet

U.S. Trade Deficit Narrows Substantially In April As Imports Plummet

Largely reflecting a sharp pullback by the value of the imports, the Commerce Department released a report on Thursday showing a substantial decrease in the size of the U.S. trade deficit in the month of April. The Commerce Department said the U.S. trade deficit narrowed to $61.6 billion in April from a revised $138.3 billion in March.
RTTNews | 3h 39min ago
U.S. Jobless Claims Unexpectedly Rise To Nearly Eight-Month High

U.S. Jobless Claims Unexpectedly Rise To Nearly Eight-Month High

With the more closely watched monthly jobs report looming, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits unexpectedly increased in the week ended May 31st. The report said initial jobless claims climbed to 247,000, an increase of 8,000 from the previous week's revised level of 239,000.
RTTNews | 3h 58min ago
German Manufacturing Orders Rise Unexpectedly

German Manufacturing Orders Rise Unexpectedly

German manufacturing orders increased in April confounding fears that higher tariffs by the US administration would hit the factory sector, official data revealed Thursday. Factory orders rose 0.6 percent month-on-month in April, following a revised 3.4 percent rise in March, Destatis said. This was the second consecutive month of growth. Orders were expected to fall 1.0 percent.
RTTNews | 4h 26min ago
U.S. Trade Deficit Narrows Much More Than Expected In April

U.S. Trade Deficit Narrows Much More Than Expected In April

Largely reflecting a sharp pullback by the value of the imports, the Commerce Department released a report on Thursday showing a substantial decrease in the size of the U.S. trade deficit in the month of April.
RTTNews | 4h 43min ago
U.S. Weekly Jobless Claims Unexpectedly Rise To 247,000

U.S. Weekly Jobless Claims Unexpectedly Rise To 247,000

With the more closely watched monthly jobs report looming, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits unexpectedly increased in the week ended May 31st.
RTTNews | 4h 48min ago