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Gold prices were poised for a second consecutive weekly gain on Friday, driven by safe-haven demand amid tensions in the Middle East and rising bets that the U.S. Federal Reserve might reduce interest rates later this year. Gold prices were poised for a second consecutive weekly gain on Friday, driven by safe-haven demand amid tensions in the Middle East and rising bets that the U.S. Federal Reserve might reduce interest rates later this year. Spot gold was up 0.1% at $2,360.95 per ounce as of 0344 GMT, after hitting a two-week high in the previous session. Lower interest rates reduce the opportunity cost of holding non-yielding bullion. Spot silver fell 0.4% to $30.60 per ounce, platinum was up 0.4% at $982.45 and palladium gained 0.8% to $930.98.
Persons: Bullion, Kelvin Wong, Wong, Luca Santos Organizations: U.S . Federal, Asia Pacific, Gaza, ACY Locations: Gaza, OANDA, U.S
Oil prices slip as rate hike worries come into focus
  + stars: | 2024-06-21 | by ( ) www.cnbc.com   time to read: +1 min
Working oil pumpjacks dot the landscape on oilfields on the outskirts of Taft, Kern County, California on Sept. 21, 2023. Crude oil futures slid in early trade on Friday on the prospect of higher-for-longer interest rates in Asia and the United States, while falling U.S. oil inventories kept prices from moving lower. Japan's core consumer prices last month gained 2.5% from a year earlier, data showed on Friday, growing from the previous month and keeping the country's central bank on track to raise interest rates higher in the coming months. U.S. data released on Thursday showed that the number of Americans filing new claims for unemployment benefits fell in the week ended June 14, with broader strength in the jobs market persisting. Higher interest rates typically weigh on economies and, in turn, on oil demand.
Persons: Bob Yawger Organizations: Brent, U.S . Federal, Energy Information Administration, EIA, Mizuho Locations: Taft, Kern County , California, Asia, United States, U.S, New York
A view of the headquarters of the Swiss National Bank (SNB), before a press conference in Zurich, Switzerland, March 21, 2024. The Swiss National Bank on Thursday trimmed its key interest rate by 25 basis points to 1.25%, continuing cuts at a time when sentiment over monetary policy easing remains mixed among major economies. The figures assumes a SNB interest rate of 1.25% over the prediction period. Switzerland already has the second-lowest interest rate of the Group of Ten democracies by a wide margin, following Japan. It became the first major economy to cut interest rates back in late March and was earlier this month followed by the European Central Bank, and questions are now mounting over whether it will proceed with a third rate cut this year.
Persons: Kyle Chapman Organizations: Swiss National Bank, Reuters, Swiss, U.S ., Nomura, European Central Bank, Ballinger Group, U.S . Federal Reserve, Bank of England Locations: Zurich, Switzerland, Swiss, London, Japan
The Bank of England held interest rates on Thursday at their highest level since 2008 even as inflation in Britain slowed to 2 percent in May, an important milestone. Policymakers kept rates at 5.25 percent, where they have been for 10 months. “It’s good news that inflation has returned to our 2 percent target,” Andrew Bailey, the governor of the Bank of England, said in a statement. This month, the European Central Bank cut rates for the first time in about five years but warned that it would take a cautious approach to future cuts. The U.S. Federal Reserve also indicated it would reduce rates just once this year, down from an earlier projection of three cuts.
Persons: ” Andrew Bailey, we’ve Organizations: of England, Bank of England, European Central Bank, U.S . Federal Locations: Britain
People walk past the headquarters of the People's Bank of China (PBOC), the central bank, in Beijing, China September 28, 2018. BEIJING — Ratings agency Fitch no longer expects China to cut its policy rate this year, and has pushed back its expectations for a reduction to next year as the U.S. Federal Reserve keeps its interest rates high. Next year, "as the Fed begins to cut policy rates we think that should give a bit more space for the PBOC to maneuver," he said. The Fed last week held steady on its key interest rate and indicated just one cut by the end of the year. That contrasts with investor expectations heading into 2024 that the Fed would soon ease monetary policy after aggressively hiking rates.
Persons: Fitch, Jeremy Zook, Zook Organizations: People's Bank of China, BEIJING —, U.S . Federal Reserve, U.S ., People's Bank of, Fed Locations: Beijing, China, BEIJING, People's Bank of China, Asia Pacific
Yields and prices move in opposite directions and one basis point is equivalent to 0.01%. The 10-year Treasury yield was trading around 4.211% at 6:29 a.m. The 2-year Treasury note yield was down 1 basis point at 4.679%. U.S. Treasury yields fell again on Friday as data released this week pointed to easing inflation. Correction: A previous version misstated the magnitude of a decline in the 10-year Treasury note yield.
Persons: Henry Allen, — Jeff Cox Organizations: U.S, Treasury, Rabobank, Deutsche Bank, U.S . Federal, US, University of Michigan
Oil prices on track for weekly gain on solid demand outlook
  + stars: | 2024-06-14 | by ( ) www.cnbc.com   time to read: +1 min
Oil prices fell on Friday but were on track for their first weekly gain in four weeks as markets assessed the impact of higher-for-longer U.S. interest rates versus solid outlooks for crude and fuel demand this year. Brent crude futures were down 72 cents, or 0.87%, to $82.04 a barrel at 0100 GMT. In a see-saw week, oil prices rallied after the Organization of Petroleum Exporting Countries stuck to a forecast for relatively strong growth in global oil demand for 2024 and Goldman Sachs projected solid U.S. fuel demand this summer. Further buoying the market, Russia pledged to meet its output obligations under the OPEC+ pact, after saying it exceeded its quota in May. This should see the crude oil market remain well supported over the next 18 months," ANZ analysts said in a client note.
Persons: Goldman Sachs Organizations: Brent, West Texas, Organization of Petroleum, OPEC, ANZ, U.S . Federal Reserve, Fed Locations: Russia, OPEC, China
Dividend-paying companies might feel compelled to cut their dividends if they're grappling with a lot of debt, as higher rates raise the cost of leverage for companies. He added dividend cuts can also serve as a "clearing event" for a stock, ironically spurring a period of outperformance. See below for a few of the potential contenders for dividend cuts. The stock is down more than 15% in 2024, and it offers a dividend yield of nearly 5%. Shares are up about 17% in 2024, and the stock has a dividend yield of 3.5%.
Persons: Jerome Powell, Chris Senyek, Wolfe, Matthew Boss, Vail, Goldman Sachs, Christine Cho, Nordstrom Organizations: Wolfe Research, Federal, Vail Resorts, JPMorgan, Vail, Nordstrom, Whirlpool, Owl Locations: Wednesday's
Costfoto | Nurphoto | Getty ImagesAsia-Pacific markets were mixed on Wednesday, ahead of inflation data from both China and India. Traders in Asia will also look toward the U.S. Federal Reserve's decision on Wednesday stateside, which will come hours after the country's May inflation report. China's May inflation rate is expected to increase by 0.4%, slightly higher than the 0.3% seen in April. Separately, India's inflation rate is also forecast to climb marginally to 4.89%, according to a Reuters poll of economists, slightly higher than April's 4.83% increase. Japan's corporate goods inflation rate accelerated to 2.4% in May, beating expectations and marking its fastest rate of increase since August.
Persons: Kospi Organizations: Nurphoto, Getty, Traders, U.S, U.S . Federal, Nikkei Locations: Nanjing, East China's Jiangsu, Asia, Pacific, China, India, U.S ., Hong Kong
Traders work on the floor of the New York Stock Exchange during afternoon trading on June 03, 2024 in New York City. LONDON — European stocks are expected to open higher Wednesday ahead of the latest U.S. Federal Reserve decision and inflation reading. The U.K.'s FTSE index is seen 29 points higher at 8,169, Germany's DAX 36 points higher at 18,408, France's CAC 40 up 13 points at 7,803 and Italy's FTSE MIB up 66 points at 33,946, according to IG. Investors have grown increasingly concerned that the recent strong jobs report and sticky inflation support a higher-for-longer interest rate environment. U.S. stock futures hovered near the flatline Tuesday night, while Asia-Pacific markets were mixed as investors assessed inflation data from around Asia.
Persons: Germany's DAX Organizations: New York Stock Exchange, LONDON, Federal, CAC, IG, U.S Locations: New York City, Asia, Pacific
The first half of the year has generally been good for the market, with the S & P 500 and the Nasdaq repeatedly reaching record highs. Year-to-date, the S & P 500 is up around 13% and the Nasdaq has risen 14.9%. Against that uncertain backdrop, investors might be looking at exchange-traded funds or mutual funds to diversify their investments. Morningstar provided the list of top-performing funds, which all beat the S & P 500. Using FactSet, that list was screened for funds that analysts give 10% or more upside, and that at least half give a buy rating.
Persons: Thomas Poullaouec, Rowe Price, Ed Clissold, Ned Davis, Morningstar, Richard Bernstein Organizations: Nasdaq, U.S . Federal Reserve, Ned, Ned Davis Research, CNBC Pro, Copper Miners, X Copper Miners, Industrial, Richard Bernstein Advisors Locations: Asia, Pacific, U.S, Turkey
Gold treads water ahead of U.S. inflation test, Fed decision
  + stars: | 2024-06-12 | by ( ) www.cnbc.com   time to read: +2 min
An employee handles one kilogram gold bullions at the YLG Bullion International Co. headquarters in Bangkok, Thailand, on Friday, Dec. 22, 2023. Gold prices were flat on Wednesday as investors awaited the U.S. Federal Reserve's policy announcement for insights into how soon it will cut interest rates this year and the May inflation report due later in the day. "Gold prices have been treading lightly amid the waiting game for greater cues on the Fed's policy path. Any lean towards two rate cuts could be perceived as a more dovish take, which may see gold prices head higher," said IG market strategist Yeap Jun Rong. Demand for gold in Asia is surging despite prices hovering near the record highs it hit in May, industry officials said.
Persons: Yeap Jun Rong, Jerome Powell's, Tim Waterer Organizations: Co, U.S, Investors, Fed, Strong U.S, People's Bank of, U.S ., KCM Locations: Bangkok, Thailand, U.S . Federal, China, People's Bank of China, Asia
An offshore oil platform is seen at sunset on February 9, 2024 near Huntington Beach, California. Oil prices rose on Tuesday, extending the previous day's rally on hopes of higher seasonal fuel demand and potential U.S. crude purchases for its petroleum reserve, though gains were capped by a firmer dollar. Brent crude futures climbed 28 cents, or 0.3%, to $81.91 per barrel by 0038 GMT and U.S. West Texas Intermediate crude futures rose 31 cents, or 0.4%, to $78.05. "Since WTI is near its 200-day average, we expect oil prices to remain close to current levels for a while," he said. U.S. crude oil stockpiles were expected to have fallen while product inventories likely rose last week, a preliminary Reuters poll showed on Monday.
Persons: WTI, Hiroyuki Kikukawa, Jennifer Granholm, Goldman Sachs, Brent Organizations: Brent, . West Texas, . Federal Reserve, NS, Nissan Securities, Strategic Petroleum Reserve, Energy, Reuters, American Petroleum Institute, Energy Information Administration, U.S . Department of Energy, U.S . Energy Information Administration, International Energy Agency Locations: Huntington Beach , California, U.S, .
Jerome Powell, Chairman of the U.S. Federal Reserve, speaks during the conference celebrating the Centennial of the Division of Research and Statistics, Board of Governors of the Federal Reserve System in Washington D.C., United States on November 08, 2023. None of those numbers are dramatically different from the April readings, and still show inflation running well above the Fed's 2% target. Central bankers prefer the Commerce Department's measure of personal consumption expenditures prices, a broader measure that also accounts for changes in consumer behavior. The Bureau of Labor Statistics is scheduled to release the CPI report at 8:30 a.m. The Fed meeting
Persons: Jerome Powell, Celal Gunes, Jonathan Pingle, Pingle, tinker, Jack Janasiewicz, , Janasiewicz Organizations: U.S . Federal Reserve, of Research, Statistics, Governors, Federal, System, Washington D.C, Getty, Anadolu, Federal Reserve, UBS, CPI, Investment, Labor Statistics Locations: Washington, United States, Anadolu
People watch the first sunrise of the new year from a footbridge overlooking the city skyline in Seoul on January 1, 2024. Asia-Pacific markets opened mixed on Tuesday, even as the S&P 500 and Nasdaq Composite reached new highs on Wall Street overnight. Investors will parse through the Fed's updated projections on the timing and frequency of rate cuts. Markets are now pricing in just one rate cut this year, coming in November, according to the CME FedWatch Tool. Asia-Pacific markets like Australia, Hong Kong, mainland China and Taiwan will return to trade on Tuesday, after being closed for a public holiday the previous day.
Organizations: Nasdaq, Traders, U.S, U.S . Federal Locations: Seoul, Asia, Pacific, U.S ., Australia, Hong Kong, China, Taiwan
ANZ: Expect Fed to cut interest rates in September and December
  + stars: | 2024-06-10 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailANZ: Expect Fed to cut interest rates in September and DecemberKhoon Goh of ANZ shares his forecast for U.S. Federal Reserve interest rate cuts.
Persons: Khoon Goh Organizations: ANZ, . Federal
Oil slips on dollar's strength from U.S. jobs data
  + stars: | 2024-06-10 | by ( ) www.cnbc.com   time to read: +3 min
Oil wells are seen at an oil facility by the Highway 5 near Bakersfield in California, U.S. on Nov. 27, 2022. Oil prices nudged lower for a second straight session on Monday, weighed down by a firmer dollar as expectations of interest rate cuts were pushed out further following strong U.S. jobs data on Friday. On Friday, data showed the U.S. added more jobs than expected last month, leading investors to trim expectations for rate cuts and causing the dollar to rally. In the U.S., Washington stepped up purchasing of crude oil to replenish the Strategic Petroleum Reserve after prices fell. Last week, U.S. energy firms cut the number of oil and natural gas rigs operating to the lowest since January 2022, energy services firm Baker Hughes said on Friday.
Persons: Emmanuel Macron, Le, Tony Sycamore, Sycamore, Brent, WTI, FGE, Washington, Baker Hughes, Hayan Abdel, Ghani Organizations: Brent, . West Texas, greenback, European Union, IG, U.S . Federal Reserve, Bank of Japan, Organization of, Petroleum, bbl, Strategic Petroleum Reserve, Iraq's Oil Locations: Bakersfield, California, U.S, European, Sydney, OPEC, Kurdistan, Iraq, Turkey
Saudi Aramco logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. Shares of Saudi Arabia's Aramco rose on Sunday following a stock sale that's set to raise the state oil company around $11.2 billion. Shares were trading around 28.25 Saudi riyals ($7.53) on the Tadāwul Saudi stock exchange at 11:30 a.m. local time (4:30 a.m. ET), above the stock sale offer price of 27.25 Saudi riyals. Citing sources, Reuters reported that demand for the offering topped $65 billion, and Aramco placed over half of the sale with foreign investors.
Persons: Prince Mohammed bin Salman's, , Ruxandra Iordache Organizations: Saudi Aramco, Saudi, Aramco, Reuters, CNBC, U.S . Federal Locations: Saudi, Saudi Arabia, Neom
CNN —Conscription, rationing, and subway stations turned into bunkers. For the first time since the Cold War, Germany has updated its plans should conflict erupt in Europe, with ministers citing the threat posed by Russia. It also outlines civil protection measures including transforming underground stations into makeshift bunkers and preparing hospitals for an influx of patients. Unveiling the plans, German Interior Minister Nancy Faeser said it was necessary for her country to arm itself better in the face of Russian aggression. ‘Ready for war by 2029’Germany’s updated wartime plans come as Russian President Vladimir Putin presents an ongoing security threat to Europe.
Persons: Nancy Faeser, , , Vladimir Putin, Pistorius, Der Spiegel, ” Pistorius, Putin, Ben Wallace Organizations: CNN, Overall Defense, German, NATO, Deutsche Welle, UK, Wednesday Locations: Germany, Europe, Russia, Ukraine, , Baltic, Britain, Moscow
The year has reached its halfway mark — and stocks are still adding on to gains. The S & P 500 hit yet another fresh record on Wednesday , as did the Nasdaq Composite. That brings the S & P 500 to gain 12.93% year-to-date. Some say the U.S. Federal Reserve could be forced to hold off on interest rate cuts if inflation is sticky. "We believe the likely main volatility trigger is still the timing of potential Federal Reserve interest-rate cuts."
Persons: Scott Wren, Wren, Schroders, Jason Yu Organizations: Nasdaq, U.S . Federal, Wells, Wells Fargo Investment Institute, CNBC Locations: Wells Fargo, Asia
Christine Lagarde, president of the European Central Bank (ECB), at a rates decision news conference in Frankfurt, Germany, on Thursday, April 11, 2024. The European Central Bank is widely expected to announce a reduction in interest rates at its meeting in Frankfurt on Thursday, despite lingering inflationary pressures in the 20-nation euro zone. The central bank's key rate has been at a record 4% since September 2023. A cut would be the ECB's first since September 2019, when the deposit facility was in negative territory. Canada on Wednesday became the first G7 nation to cut interest rates in the current cycle, while Sweden and Switzerland's central banks already announced their own rate reductions this year.
Persons: Christine Lagarde, Lagarde Organizations: European Central Bank, ECB, Reuters, U.S . Federal Reserve, Wednesday Locations: Frankfurt, Germany, Canada, Sweden
Indian Prime Minister Narendra Modi gestures, at the Bharatiya Janata Party (BJP) headquarters in New Delhi, India, June 4, 2024. Adnan Abidi | ReutersThis report is from this week's CNBC's "Inside India" newsletter which brings you timely, insightful news and market commentary on the emerging powerhouse and the big businesses behind its meteoric rise. Far from rewarding Prime Minister Narendra Modi's party with a supermajority — as polls had predicted — Indians elected 240 BJP lawmakers to India's 543-seat Parliament, which falls short of a simple majority for Modi's party. However, as the largest party, the BJP will form a coalition government thanks to its alliance with smaller parties ahead of the elections. This "radical transformation" is expected to lead to a significantly more efficient economy and help India's currency, according to Sullivan.
Persons: Narendra Modi, Adnan Abidi, Narendra Modi's, Modi, Gavekal, Tom Miller, Udith Sikand, Malcolm Dorson, Aastha Gudwani, who's, India's, Morgan, Ridham Desai, Will, Goldman Sachs, Abhiram Eleswarapu, Eleswarapu, Tanvir Gill, Sri Jegarajah, Sumathi Bala, Seema Mody, Amala Balakrishner, Vinay Dube, could've, James Sullivan, Sullivan Organizations: Indian, Bharatiya Janata Party, BJP, Reuters, CNBC, Global, of America, Gavekal Research, India Active, BNP, CNBC Pro, JPMorgan, U.S . Federal Locations: New Delhi, India, CNBC's
European Central Bank officials are expected to cut interest rates this week for the first time in more than five years, drawing a line under the worst of the eurozone’s inflation crisis and easing the pressure on the region’s weak economy. But as policymakers in the eurozone move ahead, they leave behind their counterparts at the U.S. Federal Reserve, who are grappling with a seemingly more persistent inflation problem and warning that it will take longer to cut rates there. Lowering interest rates in Europe before the United States does would create a gap between the policies of two of the world’s largest and most influential central banks. to ease its policy could weaken the euro, while higher interest rates in the United States would continue to tighten financial conditions there and in other countries because of the global role of the dollar. can split from the Federal Reserve, while others say a divergence is not unusual and reflects two different economic situations.
Organizations: European Central Bank, U.S . Federal Reserve, Federal Reserve Locations: Europe, United States
"This is still a strong labor market." The U.S. Federal Reserve raised borrowing costs to pump the brakes on the economy and labor market, ultimately to throttle back inflation. watch nowThere are indicators the U.S. job market remains strong and resilient despite headwinds, economists said. The national unemployment rate has been below 4% — a level indicating historical labor market strength — since February 2022. The current job market is more sustainable, she said.
Persons: Julia Pollak, Don't, Thomas Ryan, it's, Pollak, ZipRecruiter Organizations: SDI, U.S . Federal Reserve, Labor, Capital Economics, Workers, Federal Reserve Locations: North America
We asked the pros which are the best stock alternatives to Nvidia that are still cheap. Meta Meta remains a good investment at its current price, said Adam Coons, portfolio manager at Winthrop Capital Management. In 2025, that revenue growth is set for a 12% increase and earnings growth for 15%. That would put Meta's multiples at 26 times 2024's earnings and 23 times 2025's earnings, according to Coons. Meta is trading at a 19 times EV/EBIT multiple, versus Microsoft's 28 times, and Nvidia's 25 times.
Persons: Adam Coons, it's, Coons, Qualcomm Angelo Zino, Zino Organizations: Nvidia, Nasdaq, U.S . Federal, Winthrop Capital Management, CNBC Pro, Meta, Microsoft, Netflix, Big, Google, Gemini, Qualcomm, CFRA Research, Micron Micron, Micron Locations: Big Tech, China
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