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☆ Yen falls after BOJ stands pat on easy policy; dollar elevated
▼ + stars: | 2023-09-22 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

Banknotes of Japanese yen and U.S. dollar are seen in this illustration picture taken September 23, 2022. The yen last bought 148.09 per U.S. dollar. Sterling similarly eked out a 0.3% gain against the Japanese currency to trade at 181.80 yen. "I guess people were expecting the BOJ to leave policy unchanged but perhaps tweak the wording a bit to remove the accommodative stance." The New Zealand dollar edged 0.08% higher to $0.5936 and was eyeing a weekly gain of more than 0.5%.

Persons: Florence Lo, Kazuo Ueda, Sterling, Siong Sim, Shunichi Suzuki, Ray Sharma, Ong, BoE, Daniela Hathorn, Rae Wee, Christopher Cushing Organizations: U.S, REUTERS, Rights, Bank of Japan, Bank of Singapore, Treasury, Federal Reserve, Japan's Finance, New Zealand, Fed, Bank of England, Capital.com, Thomson Locations: Rights SINGAPORE

☆ Yen under pressure as U.S. Treasury yields push over-decade peaks
▼ + stars: | 2023-09-22 | by ( ) www.cnbc.com time to read: +3 min

A bundle of Japanese 10,000 yen banknotes on a tray arranged at a branch of Resona Bank Ltd. in Tokyo, Japan. The yen was held at the mercy of soaring U.S. Treasury yields on Friday ahead of a closely watched rate decision by the Bank of Japan, or BOJ, while the dollar stood near a six-month peak on the prospect of higher-for-longer U.S. rates. The Japanese currency was last marginally lower at 147.6 in early Asia trade, languishing near the previous session's more than 10-month low of 148.465. The yen was also kept under pressure as a result of elevated U.S. Treasury yields, which scaled multi-year highs in the previous session as markets reeled from a hawkish pause by the Federal Reserve on Wednesday. The U.S. dollar likewise rode Treasury yields higher and against a basket of currencies, the greenback touched a more than six-month high of 105.74 in the previous session.

Persons: Daniel Hurley, Rowe Price, Ray Sharma, Ong, Sterling, BoE, Daniela Hathorn Organizations: Resona Bank, Treasury, Bank of Japan, Federal Reserve, U.S, New Zealand, Fed, Bank of England Locations: Tokyo, Japan, Asia

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 15, 2023. "While the dot plots suggest upside risks to interest rates, we retain our expectations that the hike cycle is likely done and for the Fed not to raise rates again," Mark Haefele Chief Investment Officer, UBS Global Wealth Management, said in a note. Meanwhile, weak performance of recent listings after their debut highs has dampened hopes of a likely revival in the initial public offering market amid high interest rates and broader market declines. Arm Holdings also fell 3.0% to $51.3 premarket, nearing its IPO price of $51 per share while Instacart (CART.O) lost 1.4%. ET, Dow e-minis were down 188 points, or 0.54%, S&P 500 e-minis were down 34.75 points, or 0.78%, and Nasdaq 100 e-minis were down 160.75 points, or 1.06%.

Persons: Brendan McDermid, Mark, Ankika Biswas, Shristi, Arun Koyyur, Vinay Dwivedi Organizations: New York Stock Exchange, REUTERS, FedEx, Broadcom, Google, Dow, Nasdaq, Federal Reserve, Apple, Nvidia, Wall, UBS Global Wealth Management, Arm Holdings, Dow e, Marvell Technology, Marvell, Warner Bros Discovery, Paramount Global, Writers Guild of America, WGA, Thomson Locations: New York City, U.S, Bengaluru

The U.S. central bank left interest rates unchanged on Wednesday, in line with market expectations. Broadly speaking, higher rates for longer could be an unwelcome turn of events for stocks and bonds. The S&P 500 lost 0.94% on Wednesday, while the yield on two-year Treasuries, which reflect interest rate expectations, hit 17-year highs. Futures tied to the Fed’s policy rate late Wednesday showed traders were betting the central bank would ease monetary policy by a total of nearly 60 basis points next year, bringing interest rates to about 4.8%. Signs of wobbling growth could bolster the case for the central bank to cut rates far sooner than it had projected.

Persons: Sarah Silbiger, Josh Jamner, Gennadiy Goldberg, Jerome Powell, …, David Norris, John Madziyire, ”, Norris, Davide Barbuscia, David Randall, Herbert Lash, Lewis Krauskopf, Ira Iosebashvili, Stephen Coates Organizations: Eccles Federal Reserve, Washington , D.C, REUTERS, Federal, U.S, Treasury, U.S ., Clearbridge Investments, TD Securities USA, TwentyFour Asset Management, Thomson Locations: Washington ,, U.S

☆ Stocks stalled as oil surge sets stage for longer US rate peak
▼ + stars: | 2023-09-20 | by ( Tom Westbrook | ) www.reuters.com time to read: +4 min

But at $93.52 a barrel, prices remain up 30% in three months as Saudi Arabia and Russia reduce output. Benchmark 10-year Treasury yields had hit their highest since 2007 at 4.371% overnight and were last at 4.36%. The yen is down 11% on the dollar this year as expectations firm for U.S. rates to stay high and Japanese rates to stay low. The yen hit a 10-month trough of 147.95 to the dollar late last week and it traded at 147.85 on Wednesday. Rising yields have kept a lid on gold prices, with spot gold last trading at $1,929 an ounce.

Persons: Brent, Stocks, Jerome, Sam Rines, Powell presser, Masato Kanda, Eugene Low, Miral Fahmy, Jamie Freed Organizations: Federal Reserve, Brent, FTSE, Japan's Nikkei, Bank of, New Zealand, Thomson Locations: SINGAPORE, Asia, Saudi Arabia, Russia, Pacific, Japan, Hong Kong, China, Texas, Sweden, Switzerland, Norway, Britain, U.S, Singapore, Australia, Argentina

REUTERS/Lee Jae-Won/File Photo Acquire Licensing RightsLONDON/SINGAPORE, Sept 18 (Reuters) - The U.S. dollar hovered near a six-month high on Monday as traders looked ahead to interest rate decisions this week from the Federal Reserve, the Bank of England and the Bank of Japan. the yen was up a similar amount at 147.69 to the dollar, with traders out for a Japanese public holiday. Traders were looking towards central bank decisions later in the week which could shake up the currency market. Investors expect the Federal Reserve to keep interest rates on hold in the 5.25% to 5.5% range on Wednesday. The European Central Bank raised interest rates to 4% last week, but said this hike could be its last.

Persons: Lee Jae, Alvin Tan, RBC's Tan, Kazuo Ueda, Ueda's, Carol Kong, Ueda, Sterling, BoE, Harry Robertson, Vidya Ranganathan, Lincoln, Bernadette Baum, Alexander Smith Organizations: REUTERS, U.S, Federal Reserve, Bank of England, Bank of Japan, Asia FX, RBC Capital Markets, Traders, Investors, Bank of, Commonwealth Bank of Australia, European Central Bank, Thomson Locations: Seoul, SINGAPORE, U.S, Asia, Europe, China, Bank of England, Ukraine, London, Singapore

☆ UK government under pressure to take tougher line on China amid spying allegations
▼ + stars: | 2023-09-13 | by ( Luke Mcgee | ) edition.cnn.com time to read: +9 min

Sunak’s predecessor Liz Truss called for the government to formally designate China as a threat to the UK. Florence Lo/APUnder the radarBut back to the question at hand: should the events of the past few days affect the UK’s official policy? Despite the arrests, observers believe it is unlikely there will be a sea-change in the UK government’s policy on China. The allegations that China is spying on the UK, in the very heart of Britain’s democracy, is of course a very real concern. But it will not be a surprise to the government, which has baked it into British foreign policy.

Persons: Tom Tugendhat, Tugendhat, Rishi Sunak, Premier Li Qiang, ”, Sunak’s, Liz Truss, Iain Duncan Smith, UK’s, Oliver Dowden, James, Han Zheng, Florence Lo, —, Peter Ricketts, “, doesn’t, ” Ricketts, Christopher Furlong Organizations: London CNN, Sunday Times, Conservative, CNN, Premier, Embassy, Metropolitan Police, Conservative Party, of, People, parliament’s Intelligence, Security, British National Security, Getty, Russia, Diplomats Locations: China, Beijing, New Delhi, London, gossiping, Europe, Hong Kong, South China, Taiwan, Westminster

☆ Wedbush: These are the 23 best stocks to buy now from a list that has beaten the market by 5% this year
▼ + stars: | 2023-09-10 | by ( Mark Reeth | ) www.businessinsider.com time to read: +5 min

He also discussed Wedbush's best ideas list: 23 stock picks that have beaten the market YTD. As for the Fed, Merritt isn't particularly concerned about whether it cuts or hikes rates once again this year. The best stocks to buy nowBroadly, Merritt is neutral on equities, primarily because of the opportunity investors have to profit from bonds. Merritt also pointed to Wedbush's Best Ideas List, a collection of the highest-rated equities selected by Wedbush analysts. Wedbush's 23 best stock picks are below, along with each company's ticker and the price target it has been given by a Wedbush analyst.

Persons: Kevin Merritt, Merritt, Jerome Powell's, Jackson, What's, it's, Merritt isn't, Wedbush's, ~ ~$ ) Organizations: Wedbush Securities, Federal Reserve, Investors, Fed Locations: Ukraine, China, Taiwan, Russia

☆ Apple's $200 billion valuation wipeout may foreshadow a post-US tech future
▼ + stars: | 2023-09-08 | by ( Hasan Chowdhury | ) www.businessinsider.com time to read: +3 min

Apple experience a $200 billion market cap drop amid investor concerns about China. A new phone from Huawei has been built mostly with equipment from China. Apple generated almost a fifth of its $394.3 billion net sales from the region in its last fiscal year . This week, Apple's main competition in China, Huawei launched a new 5G smartphone, the Mate 60 Pro. Other tech companies may be next.

Persons: Tim Cook, Cook, Joe Biden Organizations: Apple, Huawei, Service, Xiaomi, China's Semiconductor Manufacturing International Corporation, Bloomberg, Jefferies Locations: China, Wall, Silicon, Taiwan, Washington, Beijing, Guangzhou

☆ 'Manias die in vicious ways': A pair of fund managers who have beaten 99% of their peers over the last 5 years warn the S&P 500 will shed at least 30% of its value when the current bubble pops
▼ + stars: | 2023-08-26 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

They likened the current environment to the dot-com bubble around 2000. Cole told Insider he thinks the S&P 500 will lose at least 30% of its value in the years ahead. "This financial euphoria episode has gone to a sustained high that makes the dot-com bubble look like small change," he wrote in the August 22 letter. Smead is the founder of Smead Capital Management and comanages the Smead Value Fund (SMVLX) with his son, Cole. Don't take that to mean the S&P 500 will deliver low returns every year until 2033.

Persons: Cole Smead, Cole, Bill Smead, Smead, Russell, Akin Oyedele, It's, Manias, Bill, Dubravko Lakos, Lakos Organizations: Smead Capital Management, Yahoo Finance, it's, Netflix, Visa, Mastercard, Paypal, Smead, Federal, JPMorgan, CNBC, Conference

☆ Could Fed Chair Powell’s Jackson Hole speech send stocks plunging again?
▼ + stars: | 2023-08-24 | by ( Krystal Hur | ) edition.cnn.com time to read: +6 min

New York CNN —With Nvidia earnings out of the way, the next test for US markets is Federal Reserve Chair Jerome Powell’s annual speech at the Jackson Hole economic summit on Friday. “In August of 2022, Powell knew the Fed had several more rate hikes to go. Macy’s sounds the alarm on credit card delinquenciesMacy’s is warning of a spike in customers who are failing to make credit card payments, adding to the evidence of mounting financial stress on consumers, reports my colleague Matt Egan. This situation is hurting Macy’s business, driving down credit card revenue by 36% year over year and contributing to a quarterly loss, he said. Citing worsening consumer leverage metrics, Macy’s is bracing for a further increase in “bad debt” in its credit card portfolio.

Persons: Jerome Powell’s, Powell, ”, — Powell, “, Tom Graff, Matt Egan, ” Adrian Mitchell, Danielle Wiener, Bronner, Qiana Di, Di Bari, Read Organizations: CNN Business, Bell, New York CNN, Nvidia, Kansas, Fed, Dow Jones, “, Bureau of Labor Statistics Locations: New York, Wyoming, Maui, United States, Qiana Di Bari, Lahaina, Kahului

☆ The Fed's focus on 'real' rates is what investors should be watching
▼ + stars: | 2023-08-17 | by ( Jeff Cox | ) www.cnbc.com time to read: +4 min

Gauging the 'real' rate Chair Jerome Powell , following the July meeting, said his definition of real rates is the fed funds rate minus "near-term inflation expectations." With the fed funds rate running at 5.33% and the Michigan survey indicating one-year inflation expectations at 3.3%, that puts the real rate around 2%. Using the 10-year Treasury yield against the inflation rate, the real rate currently sits around 1.6% . The evidence, though, that higher real rates are holding back activity is mixed. Its focus on real rates could mean more hawkish policy, particularly if inflation expectations start rising again.

Persons: Nicholas Colas, Jerome Powell, Powell, Colas Organizations: DataTrek Research, University of Michigan, Fed, Primary Dealers Locations: Michigan

☆ Fed officials are divided, but holding rates steady in September seems likely
▼ + stars: | 2023-08-13 | by ( Bryan Mena | ) edition.cnn.com time to read: +6 min

Washington, DC CNN —Federal Reserve officials meet next month to determine whether to raise interest rates for the 12th time to cool the economy or hold them steady. Some officials think the Fed has already raised its benchmark lending rate enough to curb inflation, but others think it’s too soon to tap the brakes. Philadelphia Fed President Patrick Harker echoed that sentiment in a speech last week, saying “I believe we may be at the point where we can be patient and hold rates steady.”Other Fed officials agree. “Inflation is still significantly above” the Fed’s 2% target, Fed governor Michelle Bowman said last week at an event in Atlanta. The Federal Reserve releases minutes from its July policymaking meeting as well as July figures on industrial production.

Persons: ” Rajeev Sharma, ”, Jerome Powell, Patrick Harker, “, Raphael Bostic, there’s, Michelle Bowman, ” Carol Schleif, ” Schleif, Katie Lobosco, Brinker Organizations: CNN Business, Bell, DC CNN — Federal Reserve, Key Private Bank, CNN, “, Fed, Financial, Philadelphia Fed, Atlanta Fed, BMO Family Office, Internal Revenue, Tax Administration, IRS, Kansas City Tax Processing, Fresno Tax Processing, China’s National Bureau of Statistics, Depot, US Commerce Department, Target, Federal Reserve, Walmart Locations: Washington, Jackson Hole , Wyoming, Atlanta, Kansas, Fresno

☆ A former BlackRock stock chief shares 3 indicators that tell him it's too early to abandon his recession call despite the economy's strength — and warns the stock market's rally is doomed for a revers
▼ + stars: | 2023-08-12 | by ( William Edwards | ) www.businessinsider.com time to read: +6 min

The inverted yield curve and The Conference Board's LEI are two indicators that inform his view. Instead, investors should be paying attention to indicators like the Treasury yield curve, The Conference Board's Leading Economic Index, and money growth. Here's the yield curve. And the start of a recession typically comes a bunch of of months after the yield curve inverts. The yield curve didn't invert until less than a year ago.

Persons: Bob Doll, LEI, Doll, Wall, — Bank of America's Michael Gapen, Michael Feroli —, we're, Louis, It's, Rosenberg Research's David Rosenberg, Piper Sandler's Michael Kantrowitz, Greg Boutle, Tom Lee Organizations: Federal Reserve, — Bank of America's, Crossmark Global Investments, BlackRock, Conference, Federal Reserve Bank of St, Fed, Louis Investors, Deutsche Bank, Bloomberg, BNP, Institute for Supply, Institute for Supply Management, of Labor Statistics Locations: Wells

☆ India rate panel to dial up hawkishness even as it holds policy steady
▼ + stars: | 2023-08-08 | by ( Swati Bhat | ) www.reuters.com time to read: +3 min

A woman walks past the Reserve Bank of India (RBI) logo inside its headquarters in Mumbai, India, April 6, 2023. A July 13-31 Reuters poll of 75 economists showed the central bank was expected to keep its repo rate unchanged at 6.50% at its Aug. 10 policy meeting. The rise in food prices, however, has been sharper than expected this year and is seen lasting longer. The MPC at its June policy meeting also reiterated its intent of nudging inflation towards its medium-term target of 4% and not just holding it below 6%. "It will also possibly emphasise a larger need to be watchful of the second-round effects of high food prices and inflation expectations."

Persons: Francis Mascarenhas, Shah, Pankaj Pathak, Swati Bhat, Sharon Singleton Organizations: Reserve Bank of India, REUTERS, MPC, Capital Economics, DBS Bank, DBS, ANZ, U.S, Fed, AMC, Thomson Locations: Mumbai, India, MUMBAI

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. Fitch's action hit the appetite for risky assets on Wednesday, dragging Wall Street sharply lower as investors took the opportunity to book profits on five months of gains. Earnings are also in focus as Apple and Amazon.com (AMZN.O) are due to report quarterly results after market close. Qualcomm (QCOM.O) tumbled 8.4% in trading before the bell as the San Diego, California-based company's fourth-quarter sales forecast fell below market expectations. Meanwhile, Moderna(MRNA.O) gained 3.3% as the company raised its annual forecast for COVID-19 vaccine sales to up to $8 billion.

Persons: Brendan McDermid, Karen Reichgott Fishman, Goldman Sachs, Thomas Barkin, Peers, Shubham Batra, Bansari, Anil D'Silva Organizations: New York Stock Exchange, REUTERS, Moderna, PayPal, Qualcomm, Dow, Nasdaq, Apple, Microsoft, Richmond Federal, Dow e, Peers Nvidia, Intel, PayPal Holdings, Thomson Locations: New York City, U.S, San Diego , California, Bengaluru

This will leave investors guessing whether another rate hike is coming or if July marks the end of the ECB's fastest-ever tightening spree. "The Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction," the ECB added. While markets had fully priced in another rate hike just a few weeks ago, a growing number of investors are betting that Thursday's move will be the last. More tightening would however be consistent with comments from a host of policymakers, including ECB board member Isabel Schnabel, that raising rates too far would still be less costly than not lifting them high enough. This is a key reason why the balance of expectations has started to shift away from another rate hike, with economists increasingly focusing on how long rates will stay high.

Persons: Isabel Schnabel, Jerome Powell, Christine Lagarde, Catherine Evans Organizations: European Central Bank, ECB, U.S . Federal Reserve, Thomson Locations: FRANKFURT

☆ Morning Bid: Soft landing swings into view
▼ + stars: | 2023-07-27 | by ( ) www.reuters.com time to read: +2 min

After Wednesday's 25 basis point hike, markets seem to think so. Traders in Asia cheered a glimpse of the fabled soft landing with Jerome Powell saying the Fed no longer expects a U.S. recession. Stocks rose and the dollar fell across the board. The Bank of Japan is then up on Friday, with perhaps the most unpredictable central bank decision of the week. European futures rose 0.3% and U.S. futures also added 0.3%.

Persons: Brigid Riley, Jerome Powell, Christine Lagarde, Klass, HSI, Muralikumar Organizations: Traders, European Central Bank, Bank of Japan, Renault, Intel, Ford, MasterCard, Reuters Graphics Reuters, Thomson Locations: Asia, U.S, France, United States

That will leave investors guessing whether another rate hike is coming in September or if July marks the end of the ECB's fastest-ever tightening spree. While markets had fully priced in another rate hike just a few weeks ago, investors are now split, with many expecting July's move to be the last. "We see a 60% probability that the ECB will hike again by a final 25bp on 14 September," Berenberg's Salomon Fiedler said. "Softer data such as the drop in the Eurozone composite PMI indicate a rising chance that the central bank will stay put in September already." This is a key reason why the balance of expectations has started to shift away from another rate hike, with economists increasingly focusing on how long rates will stay high.

Persons: July's, Berenberg's Salomon Fiedler, Isabel Schnabel, Jerome Powell, Anatoli Annenkov, Christine Lagarde, Commerzbank's Marco Wagner, Catherine Evans Organizations: European Central Bank, ECB, PMI, U.S . Federal Reserve, Thomson Locations: FRANKFURT

☆ Global shares slip, dollar soars vs yen on BoJ policy expectations
▼ + stars: | 2023-07-21 | by ( Herbert Lash | ) www.reuters.com time to read: +5 min

[1/3] Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. The yen weakened 1.19% to 141.77 per dollar, while the dollar index , a measure of the greenback against major trading currencies, rose 0.31%. "None of them are happening with massive severity, but the longer we go on with higher rates, more and more that's going to come through," he said. BOJ policymakers prefer to scrutinize more data to ensure wages and inflation keep rising before changing yield control policy, five sources familiar with the matter said. "Markets were building up expectations which now look unlikely to play out," said Guillaume Paillat, a multi-asset manager at Aviva Investors.

Persons: Brendan McDermid, BoJ, Dow, Garrett Melson, Mullarkey, Patrick Spencer, Guillaume Paillat, Brent, Herbert Lash, Naomi Rovnick, Stella Qiu, Conor Humphries, David Holmes, Marguerita Choy, Cynthia Osterman Organizations: New York Stock Exchange, REUTERS, Fed, ECB, Reuters, Bank of Japan, U.S . Federal Reserve, European Central Bank, Nasdaq, Investment, Microsoft Corp, Apple Inc, SLC Management, Baird, Microsoft, Apple, NYSE, Aviva Investors, Treasury, Thomson Locations: New York City, U.S, Boston, London, MSCI's U.S, Europe, China, Sydney

Gold prices slipped as the dollar rebounded to its highest level in more than a week as investors prepare for next week's big central bank policy meetings, including the BoJ, the U.S. Federal Reserve and the European Central Bank. The yen weakened 1.13% to 141.68 per dollar, while the dollar index , a measure of the greenback against major trading currencies, rose 0.36%. BoJ policymakers prefer to scrutinize more data to ensure wages and inflation keep rising before changing yield control policy, five sources familiar with the matter said. The report added there was no consensus within the central bank and the decision could still be a close call. As Japanese inflation has stayed above the BoJ's target, traders have bet on the central bank ditching its yield curve control program, a move likely to cause the yen to strengthen.

Persons: Brendan McDermid, BoJ, Garrett Melson, Patrick Spencer, Spencer, you've, Guillaume Paillat, Brent, Herbert Lash, Naomi Rovnick, Stella Qiu, Conor Humphries, David Holmes, Marguerita Choy Organizations: New York Stock Exchange, REUTERS, Fed, ECB, Reuters, Bank of Japan, U.S . Federal Reserve, European Central Bank, Investment, Nasdaq, Baird, Microsoft Corp, Apple Inc, NYSE, Aviva Investors, Treasury, Thomson Locations: New York City, U.S, Boston, Europe, China, London

[1/3] Pound notes and change are seen inside a cash resgister in a coffee shop in Manchester, Britain, Septem,ber 21, 2018. REUTERS/Phil Noble/LONDON/SINGAPORE, July 19 (Reuters) - Sterling slid on Wednesday after lower-than-expected British inflation data suggested the Bank of England might not have to raise rates quite as high as expected, while the latest dovish comments from the Bank of Japan caused the yen to soften. ,That was the British currency's lowest in a week against the dollar, as it continued to roll off a 15-month high of $1.3144 hit Thursday. Bank of Japan Governor Kazuo Ueda said on Tuesday there was still some distance to sustainably achieving the central bank's 2% inflation target, signalling his resolve to maintain ultra-loose monetary policy for the time being, in contrast to the hawkishness at other major central banks. Economists polled by Reuters expect the Fed to deliver a 25-basis-point rate hike at its upcoming policy meeting this month, with a majority betting that will bring an end to the central bank's current monetary tightening cycle.

Persons: ber, Phil Noble, Sterling, “, Kenneth Broux, Kazuo Ueda, Alun John, Rae Wee, Shri Navaratnam, Sam Holmes, Sharon Singleton Organizations: REUTERS, LONDON, Bank of England, Bank of Japan, Societe Generale, New Zealand, Federal, Reuters, Thomson Locations: Manchester, Britain, SINGAPORE, British, Asia Pacific, London, Singapore

☆ Tumbling US dollar a boon to risk assets across the globe
▼ + stars: | 2023-07-14 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +5 min

NEW YORK, July 14 (Reuters) - Cooling U.S. inflation is accelerating a decline in the dollar, and risk assets around the world stand to benefit. Because the dollar is a linchpin of the global financial system, a wide range of assets stand to benefit if it continues falling. Raw materials, which are priced in dollars, become more affordable to foreign buyers when the dollar declines. "For markets, the weaker dollar and its underlying driver, weaker inflation, is a balm for everything, especially for assets outside the U.S.," said Alvise Marino, foreign exchange strategist at Credit Suisse. Reuters GraphicsIn the world of monetary policy, the dollar's decline may be a relief to some countries, as it removes the urgency for them to support their falling currencies.

Persons: Russell, Alvise Marino, Karl Schamotta, Paresh Upadhyaya, Upadhyaya, Kenneth Broux, Helen, pare, it's, Saqib Iqbal Ahmed, Dhara Ranasinghe, Ira Iosebashvili, Leslie Adler Organizations: YORK, U.S, Federal Reserve, Investment, Goldman Sachs, Credit Suisse, Treasury, Fed, Colombian, Kazakhstan tenge, Uruguayan, Reuters Graphics, Traders, Generale, stoke, Monex USA, Thomson Locations: U.S, Polish, Corpay, Kazakhstan, Japan, Swedish

☆ Morning Bid: Markets bet July 2023 is 'peak Fed'
▼ + stars: | 2023-07-13 | by ( ) www.reuters.com time to read: +4 min

A look at the day ahead in U.S. and global markets from Mike DolanSurprise news of a 2%-plus print on U.S. headline inflation rate for June has world markets betting the peak of the Federal Reserve's interest rate campaign will now be this month. Either way, the latest inflation cheer means U.S. rate futures have wiped out bets of another Fed rate hike after a final quarter-point move to 5.25-5.50% at July 26's meeting. Although they see peak rates held there to year-end, futures now price as much as a full percentage point of cuts by this time in 2024. The VIX "fear index" (.VIX) fell back below 14 to its lowest of the month so far. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Mike Dolan, That's, Christopher Waller, Mary Daly, Joe Biden, Christine Lagarde, Toby Chopra Organizations: Fed, Nasdaq, PepsiCo, Delta Airlines, Bank of, Swiss, Bank of Canada, Federal Reserve, San Francisco Fed, Nordic, European Central Bank, . Treasury, Reuters, Thomson Locations: U.S, Beijing, Jackson, Fastenal, Helsinki, Brussels, Japan

☆ India's slow progress in becoming a chipmaking powerhouse to rival China is bad news for Apple
▼ + stars: | 2023-07-12 | by ( Hasan Chowdhury | ) www.businessinsider.com time to read: +4 min

Apple has long depended on China for manufacturing, but the relationship is getting complex. Two recent developments suggest India's push to become a viable alternative to China — and benefit Apple — are mixed. "Foxconn has determined it will not move forward on the joint venture with Vedanta," Foxconn said in a statement to Reuters. That's a critical blow to Modi, who set out chip manufacturing as a strategic part of his ambitions to level up India. Vedanta chairman Anil Agarwal tweeted that the joint venture meant "India's own Silicon Valley is a step closer now."

Persons: Foxconn, —, China's, Luxshare, JP Morgan, Tim Cook, Modi, Madhuri Dixit, Mukesh Ambani, Narendra Modi, That's, Europe's, Anil Agarwal, Agarwal Organizations: Apple, Apple ., Tata Group, Bloomberg, Vedanta, Reuters Locations: China, India, Asia, China's hawkishness, Taiwan, Vietnam, Beijing, Mumbai, iPhones, Karnataka, Modi's, Gujarat, Cupertino

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