Edition:
International

Sujata Rao

Analysis-Rise in real bond yields may slow but not stop stock market bulls

Jan 12 2022

LONDON This month's sudden spike in inflation-adjusted bond yields has jolted TINA, the thesis that "there is no alternative" to stocks, yet if history is any guide, equities should withstand this rise in real interest rates or even flourish.

GLOBAL MARKETS-Stocks rebound as traders buy back in before Fed testimony

Jan 11 2022

LONDON, Jan 11 Global stocks recovered some of their recent losses on Tuesday and government bond yields retreated as investors bought back into riskier assets ahead of the appearance of U.S. Federal Reserve Chair Jerome Powell before the Senate Banking Committee.

GLOBAL MARKETS-Stocks steady, bond yields cling to highs ahead of Fed testimony

Jan 11 2022

LONDON, Jan 11 Global stocks edged up and bond yields clung to recent highs on Tuesday as investors awaited U.S. Federal Reserve Chair Jerome Powell's appearance before the Senate Banking Committee, hoping for clues to the timing of expected policy tightening.

GLOBAL MARKETS-Global equities lifted by investor optimism, U.S. jobs data

Dec 30 2021

* Global COVID-19 infections hit record peak over 7-day period

GLOBAL MARKETS-Omicron, dollar gains stall world stocks' rally

Dec 30 2021

* Global COVID-19 infections hit record peak over 7-day period

GLOBAL MARKETS-Omicron, dollar gains stymie world stocks' winning streak

Dec 30 2021

* Global COVID-19 infections hit record high over 7-day period

Pound lifted to one-month high by gilt yield rise, Omicron reassurance

Dec 23 2021

LONDON Sterling vaulted above $1.34 for the first time in a month on Thursday and also scaled a one-month high against the euro, surfing a general uptick in risk sentiment and a steep rise in Britain's short-dated government bond yields.

UPDATE 2-Pound lifted to one-month high by gilt yield rise, Omicron reassurance

Dec 23 2021

LONDON, Dec 23 Sterling vaulted above $1.34 for the first time in a month on Thursday and also scaled a one-month high against the euro, surfing a general uptick in risk sentiment and a steep rise in Britain's short-dated government bond yields.

FOREX-Dollar firms after a dip as markets weigh rate policies, coronavirus

Dec 14 2021

* U.S. dollar index off less than 0.1% * Dollar gains on yen, slips to euro, pound * Different central bank moves are key (New throughout, updates prices, market activity and comments; new byline, changes dateline, previous LONDON) By David Henry and Sujata Rao NEW YORK/LONDON, Dec 14 The U.S. dollar was down slightly on Tuesday after coming back from a dip that nearly wiped out its gains from the day before as markets jostled with the different paths major central banks will choose to fight inflation and the pandemic's economic drag. The U.S. dollar index was down less than 0.1% to 96.315 in midmorning trading in New York after having earlier given up much of its Monday gain of 0.3%. New U.S. producer price data released earlier in the day affirmed market expectations that the U.S. Federal Reserve will announce on Wednesday that it will quicken its withdrawal from bond purchases. The report showed factory gate inflation at 11-year highs. "It's clear the Fed needs to react to higher inflation," said David Riley, chief investment strategist at BlueBay Asset Management. "It's an environment where it's very hard not to be positive on the US dollar," he said. Markets have been pricing for the Fed to wrap up bond-buying around March and proceed with rate hikes. "We have a decent long dollar position based on what we expect the Fed to do," said Charles Diebel, head of fixed income at Mediolanum International Funds. The euro and the British pound gained on the dollar. The euro firmed 0.1% to $1.1294 after touching a one-week low of $1.12605 overnight. Germany's Ifo institute on Tuesday predicted the German economy to shrink by 0.5% quarter-on-quarter in the final three months of this year and to stagnate in the first three months of next year. Sterling gained 0.2% to $1.323 after data showed employers hired a record number of staff in November. But the Japanese yen lost ground, with the dollar trading at 113.69 yen at 1520 GMT. Commodity-associated currencies, including the Australian and Canadian dollar, lost about 0.1% to 0.2% of their value to the greenback as oil prices dropped toward $73 a barrel. The International Energy Agency (IEA) said that the Omicron coronavirus variant is set to dent the global demand recovery. Exchange rates have been moving with changing expectations for interest rate differences across currencies. The back-and-forth reflects the prospect for diverging choices by major central banks between fighting inflation by pulling back monetary support for their economies or providing easy money because of the spread of the Omicron variant. That's different from the start of the pandemic when central banks tended to make the same moves. The Fed's meeting headlines a string of policy decisions this week from the European Central Bank, Bank of England, the Swiss National Bank, the Bank of Japan and others. While money markets price good odds of a Fed rate hike by June, no moves are expected any time soon from the ECB, BOJ or SNB. And, the Omicron threat could force the BoE to postpone a rate hike. Crypto currency bitcoin gained 1% to $47,292, but remains some 30% below record highs reached in early November. ======================================================== Currency bid prices at 10:20AM (1520 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 96.3150 96.3660 -0.04% 7.039% +96.4930 +96.0910 Euro/Dollar $1.1294 $1.1286 +0.08% -7.55% +$1.1324 +$1.1267 Dollar/Yen 113.6900 113.5850 +0.11% +10.05% +113.7450 +113.4300 Euro/Yen 128.39 128.17 +0.17% +1.16% +128.5600 +128.0000 Dollar/Swiss 0.9216 0.9224 -0.08% +4.18% +0.9237 +0.9190 Sterling/Dollar $1.3230 $1.3211 +0.16% -3.15% +$1.3256 +$1.3192 Dollar/Canadian 1.2832 1.2812 +0.16% +0.77% +1.2840 +1.2800 Aussie/Dollar $0.7122 $0.7136 -0.19% -7.41% +$0.7135 +$0.7090 Euro/Swiss 1.0409 1.0408 +0.01% -3.68% +1.0416 +1.0390 Euro/Sterling 0.8534 0.8536 -0.02% -4.51% +0.8553 +0.8529 NZ $0.6753 $0.6752 +0.07% -5.90% +$0.6770 +$0.6735 Dollar/Dollar Dollar/Norway 9.0820 9.0430 +0.35% +5.68% +9.0965 +9.0480 Euro/Norway 10.2570 10.2071 +0.49% -2.00% +10.2865 +10.1919 Dollar/Sweden 9.1157 9.0864 +0.39% +11.22% +9.1218 +9.0665 Euro/Sweden 10.2969 10.2572 +0.39% +2.19% +10.3060 +10.2516 (Reporting by David Henry in New York and Sujata Rao in London. Editing by Raissa Kasolowsky, Ed Osmond, William Maclean)

FOREX-Dollar near one-week high on expectation of hawkish Fed

Dec 14 2021

LONDON, Dec 14 The U.S. dollar stayed near one-week highs on Tuesday versus a basket of major currencies, as data showing factory gate inflation at 11-year highs confirmed market expectations of a faster taper pace at this week's Federal Reserve meeting.

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