Wall Street rallies, dollar, U.S. Treasury yields jump on Fed rate hike bets

Wall Street indexes rallied on Wednesday, with the Dow hitting a record above 21,000 points, while the dollar and U.S. Treasury yields jumped as investors bet that a U.S. interest rate hike would come soon. New York Fed President William Dudley – one of the most influential U.S. central bankers, and usually considered a dove – said late Tuesday that the case for tightening monetary policy had become “a lot more compelling”, while San Francisco Fed President John Williams said he saw “no need to delay” raising rates…

So what was the TPP, and why Trump killed it

The TPP is DOA. President Donald J. Trump signed an executive order Monday announcing the U.S. will withdraw from negotiating the TPP, or Trans-Pacific Partnership deal. “Great thing for the American worker, what we just did,” he told the press corps after signing, as his chief adviser Steve Bannon, former executive editor of Breitbart, a platform for the so-called “alt-right,” looked on with a tight grin…

UK unemployment falls to 4.9% in September, hits 11-year low

Unemployment dropped to its lowest level in 11 years in September in a further indication that Britain’s employers have largely shrugged off the Brexit vote. Official figures show the unemployment rate was 4.8%, the lowest since September 2005 and down from 4.9% in August and 5.3% a year earlier. The fall in unemployment by 37,000 from the previous quarter to 1.6 million people was held up by the employment minister, Damian Hinds, as the mark of a strong labour market in the wake of the EU referendum…

Chinese yuan keeps sinking, hits lowest level since the financial crisis in 2008

China’s currency keeps sinking against the dollar. Since Donald Trump won the U.S. presidential election last week, Beijing has allowed the yuan to tumble. The fall continued Tuesday, with one dollar buying around 6.86 yuan, the weakest the Chinese currency has been since the dark days of the global financial crisis in late 2008.
Trump’s victory has cast a deep shadow over the relationship between the world’s two largest economies…

U.S. consumer spending up 0.5% in September after dipping 0.1% in August

U.S. consumer spending rose more than expected in September as households boosted purchases of motor vehicles and inflation increased steadily, which could bolster expectations of an interest rate hike from the Federal Reserve in December. The Commerce Department said on Monday that consumer spending, which accounts for about 70 percent of U.S. economic activity, increased 0.5 percent after dipping 0.1 percent in August…

UK GDP grew 2.3% in third quarter, up 0.5% since Brexit vote

Whoa. That’s what you call resilience. The U.K. economy grew 2.3% in the third quarter, confounding forecasts that it would slump after the Brexit vote.
Quarter on quarter, GDP grew 0.5%. That’s weaker than the second quarter, but nowhere near as bad as expected. The Bank of England was expecting growth of between 0.2% and 0.3% in the July to September period…

U.S. consumer confidence retreats to 98.6 in October

Americans took a dimmer view of the economy this month, the latest sign that households remain cautious as economic growth lags behind this year and the presidential election nears. The Conference Board said Tuesday its index of consumer confidence dropped to 98.6 in October from 103.5 in September. Economists surveyed by The Wall Street Journal […]

U.S. home prices rise 5.1% in August; consumer confidence slips

U.S. home prices rose 5.1 percent in the year to August as home buyers competed for fewer properties, helped by low mortgage interest rates, some wage growth and low unemployment. The S&P CoreLogic Case-Shiller report published on Tuesday said its 20-city index was up 5.1 percent, after a rise of 5.0 percent in the year […]

U.S. CPI rises 0.3% in September, hits 5-month high

U.S. consumer prices recorded their biggest gain in five months in September as the cost of gasoline and rents surged, pointing to a steady pickup of inflation that could keep the Federal Reserve on track to raise interest rates in December. The Labor Department said on Tuesday its Consumer Price Index increased 0.3 percent last month after rising 0.2 percent in August. In the 12 months through September, the CPI accelerated 1.5 percent, the biggest year-on-year increase since October 2014. The CPI rose 1.1 percent in the year to August…

U.S. industrial output edges up 0.1% in September

WASHINGTON—U.S. industrial output improved slightly in September, suggesting struggling manufacturers and oil producers may be finding their footing in the second half of the year. Industrial production—a measure of output at factories, mines and utilities—rose a seasonally adjusted 0.1% in September from August, the Federal Reserve said Monday…

BOE’s not going to take instruction on policies from the political side, says Carney

The Bank of England will not take instructions on its policies from politicians, its governor, Mark Carney, has said, just a week after Theresa May took a swipe at the impact of the Bank’s actions on “ordinary” people. Speaking at Birmingham town hall as part of the Bank’s Future Forum event on Friday, Carney said it became difficult for the Bank when politicians commented on its policies rather than its objectives…

U.S. retail sales rise to 0.6% in September amid surge in auto purchases, discretionary spending

U.S. retail sales rebounded in September amid a surge in motor vehicle purchases and rise in discretionary spending, pointing to solid demand that reinforces expectations of an interest rate increase from the Federal Reserve in December. Other data on Friday suggested a pickup in inflation, with producer prices rising broadly last month to record their biggest year-on-year increase since December 2014…

Newsletter

Zero spam.