Interest rates could be in the perfect range for markets right now, Morgan Stanley’s CIO said. The Fed left interest rates unchanged following its January policy meeting. Inflationary pressures could mean that future rate cuts aren’t coming for a while, forecasters say. The Federal Reserve’s decision to keep interest rates level after its policy meeting…
TOKYO –The Japanese yen rose against the U.S. dollar on Friday after the central bank lifted interest rates as expected at its two-day meeting and maintained a balanced tone on its future decisions, as U.S. trade partners await clarity on policy under a new president. The Bank of Japan “is trying to be relatively cautious and…
Bill Smead warns a stock market bubble is set to unwind. Rising 10-year Treasury yields will eventually put pressure on growth stocks, Smead argues. Smead’s view contrasts with Wall Street’s optimistic S&P 500 predictions for 2025. The ongoing optimism around the mega-cap AI stocks driving the S&P 500 doesn’t make sense to Bill Smead. The…
Foreign investors are fueling the “mother of all bubbles” in US stocks, Ruchir Sharma wrote in the FT. “Global investors are committing more capital to a single country than ever before in modern history.” As money flows into US markets, fundamentals will erode across foreign economies, he said. Despite mounting geopolitical and macroeconomic concerns globally,…
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The conflicting narratives about the US economy seem to have one thing in common: extremity. There are those who argue that America isn’t just on the edge of a recession but already in one: “The Sahm rule has triggered! The ISM is below 50! Payroll employment has been revised down by nearly 1 million!” The…
China announced on Monday it had slashed a key reference rate for mortgage loans by a quarter of a percentage point, as the country stepped up efforts to stabilise the property market. The benchmark five-year loan prime rate (LPR) was lowered from 3.85 per cent to 3.6 per cent, while the one-year lending rate was…
The upcoming inflation report will help determine the Fed’s next move. Friday’s surprisingly strong jobs data has slashed bets of a half-point rate cut. The Fed is more likely to leave rates unchanged in November if price growth is strong, UBS says. Thanks for signing up! Access your favorite topics in a personalized feed while…
Text size CHANGES source China on Friday cut the amount banks must hold in reserve, a bid to boost its flagging economy by releasing an estimated $142.6 billion in liquidity into the financial market. The move, unveiled in a statement from China’s central bank, comes a day after top officials including President Xi Jinping met…