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REUTERS/Loren Elliott Acquire Licensing RightsAug 30 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Australian inflation, Japanese consumer confidence and German inflation figures later in the day are the main data points on Wednesday's economic calendar that could move Asian markets, which have started the week on a roll. A series of measures from China aimed at boosting domestic stock markets have had an immediate effect - China's benchmark index of blue chip stocks on Tuesday posted back-to-back gains of 1% or more for the first time since January. Money markets quickly swiped off the table expectations of another rate hike this year, short-dated yields plunged and stocks boomed. Put all that together and there is every reason to believe Asian markets will open in the green on Wednesday.

Persons: Loren Elliott, Jamie McGeever, Cryptocurrencies, Gina Raimondo, Michele Bullock, Josie Kao Organizations: REUTERS, Money, Nasdaq, Securities and Exchange, Stock Connect, U.S . Commerce, Bank of China, Incoming, Thomson, Reuters Locations: Sydney, Australia, China, U.S, Japan, Germany

☆ Powell signals no retreat, no surrender
▼ + stars: | 2023-08-28 | by ( ) www.reuters.com time to read: +4 min

Federal Reserve Chair Jerome Powell walks in Teton National Park where financial leaders from around the world gathered for the Jackson Hole economic symposium outside Jackson, Wyoming, U.S., August 26, 2022. There's no doubt that the U.S. central bank is nearing the end of its mission to wrestle down inflation. Headline consumer price pressures are rapidly abating, thanks to a wholesale retreat in food and energy prices. "It is the Fed's job to bring inflation down to our 2% goal, and we will do so," he said. This week, investors get a dose of top-tier data to help shape their view on the Fed's next move.

Persons: Jerome Powell, Jackson, Jim Urquhart, Amanda Cooper, it's, Mohammed El, Erian, payrolls, Kirsten Donovan Organizations: REUTERS, Federal Reserve, Futures Trading, Reuters Graphics Reuters, Reuters, Dallas Fed, Thomson Locations: Teton, Jackson , Wyoming, U.S

☆ Canadian economy set to show marked slowdown in second quarter, giving central bank cause to pause
▼ + stars: | 2023-08-27 | by ( Fergal Smith | ) www.reuters.com time to read: +3 min

[1/2] Condominium and office towers are seen on the mountain-backed skyline of Vancouver, British Columbia, Canada September 30, 2020. The GDP report will be the last major piece of domestic data before the Canadian central bank makes its next policy decision on Sept. 6. The central bank has said it would study economic data closely before determining whether it raises interest rates further. The BoC has projected 1.5% growth for the third quarter, matching its second-quarter estimate. Some argue that the composition of growth in the second-quarter data, including the split between internal and external demand, could also be a consideration.

Persons: Jennifer Gauthier, Carlos Capistran, Bank of America Merrill Lynch, Benjamin Reitzes, we've, Stephen Brown, Andrew Grantham, Fergal Smith, Denny Thomas, Jonathan Oatis Organizations: REUTERS, Rights, Bank of Canada, BoC, Bank of America, BMO Capital Markets, Money, North, Capital Economics, CIBC Capital Markets, Thomson Locations: Vancouver , British Columbia, Canada, Canadian, Mexico, North America

☆ Morning Bid: 'Flash' business funk and AI buzz
▼ + stars: | 2023-08-23 | by ( ) www.reuters.com time to read: +4 min

Raindrops hang on a sign for Wall Street outside the New York Stock Exchange in Manhattan in New York City, New York, U.S., October 26, 2020. Euro zone government bond yields and the euro tumbled as traders bet the European Central Bank may soon pause its interest-rate hike campaign, with money markets now pricing less than a 50% chance of further tightening. The dollar (.DXY) hit its highest since early June as both the euro and sterling took a hit. Existing home sales dropped to a six-month low in July, with new home sales numbers due later today. European and Japanese shares were up smartly too, but mainland Chinese stocks (.CSI300) underperformed yet again and dropped another 1%-plus.

Persons: Mike Segar, Mike Dolan, Wednesday's, John Stonestreet Organizations: Wall, New York Stock Exchange, REUTERS, Micron Technology, European Central Bank, Treasury, Federal, Jackson, Nvidia, Apple, Microsoft, Devices, Autodesk, Advance, Thomson, Reuters Locations: Manhattan, New York City , New York, U.S, Europe, Philadelphia, United States, Johannesburg

☆ Money markets cut Sep ECB rate hike bets after German PMI
▼ + stars: | 2023-08-23 | by ( ) www.reuters.com time to read: 1 min

LONDON, Aug 23 (Reuters) - Traders on Wednesday scaled back bets for a September interest rate hike in the euro area following much weaker-than-expected business activity data from Germany, Europe's biggest economy. Money market futures now price just a 40% chance of a quarter point rate hike from the European Central Bank next month, compared with roughly a 60% chance priced in ahead of the data . German business activity contracted at the fastest pace for more than three years in August, a preliminary survey showed on Wednesday. Reporting by Stefano Rebaudo; editing by Dhara RanasingheOur Standards: The Thomson Reuters Trust Principles.

Persons: Stefano Rebaudo, Dhara Organizations: Traders, European Central Bank, Thomson Locations: Germany, Europe's

☆ Global stock market correction likely before year-end: Reuters poll
▼ + stars: | 2023-08-23 | by ( Hari Kishan | ) www.reuters.com time to read: +4 min

REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsSummary poll dataReuters poll graphic on global stock market outlookBENGALURU, Aug 23 (Reuters) - Global stock markets are heading for a correction in coming months, though overall they should post marginal gains between now and the end of 2023, according to a majority of analysts polled by Reuters. A bad year for stocks in 2022 carried into this year as global central banks battled inflation with interest rate rises that are now largely drawing to an end. A 71% majority of analysts, 55 of 77, who answered an additional question in the Aug. 9-23 poll said a correction by year-end in their local equity market was either likely or very likely. A "fear of missing out" is said to have helped drive much of the equity market rallies of recent years. The year-end forecast in February's Reuters poll was 4,200.

Persons: Brendan McDermid, Jerome Powell, Marko Kolanovic, Morgan, Terry Sandven, Europe's, Hari Kishan, Indradip Ghosh, Ross Finley, John Stonestreet Organizations: New York Stock Exchange, REUTERS, Reuters, Treasury, NIKKEI, February's Reuters, U.S, Bank Wealth Management, Japan's Nikkei, IPC, Thomson Locations: New York City, U.S, BENGALURU, Jackson, February's, Bengaluru, Buenos Aires, London, Mexico City, Milan, New York, San Francisco, Sao Paulo, Tokyo, Toronto

NEW YORK, Aug 23 (Reuters) - A recent spike in U.S. bond yields has come alongside muted expectations for inflation, a sign to some bond fund managers that economic resilience and high bond supply are now playing a larger role than second-guessing the Federal Reserve. Bond yields, which move inversely to prices, tend to rise in an inflationary environment because inflation erodes the value of a future bond payout. But while higher moves in bond yields in the last several months were often driven by investors pricing in higher interest rates as the Fed sought to tame rising inflation, expectations on the pace of price rises have moved lower in recent weeks. Long-term Treasury yields account for factors such as inflation expectations and term premiums, or what investors demand to be compensated for the risk of holding long-term paper. A recent string of strong economic data despite higher interest rates has strengthened investor beliefs that interest rates will remain higher for longer, even if inflation is tamed.

Persons: Jerome Powell, Jackson, Bond, ”, Calvin Norris, John Madziyire, Anthony Woodside, “, Aegon's Norris, Davide Barbuscia, Megan Davies, Anna Driver Organizations: Federal Reserve, Federal, Aegon Asset Management, Investors, Bank of Japan, BMO Capital Markets, Treasury, Securities, Reuters, Fed, Thomson Locations: U.S, America

☆ Dollar eases before Jackson Hole, yen rises amid intervention jitters
▼ + stars: | 2023-08-22 | by ( Kevin Buckland | ) www.reuters.com time to read: +4 min

U.S. Dollar and Chinese Yuan banknotes are seen in this illustration taken January 30, 2023. China's yuan briefly popped to a one-week high as the central bank again tried to bolster the currency by setting a much stronger-than-anticipated daily mid-point, but those gains fizzled out quickly. Money markets currently lay a bit less than 50/50 odds for another 25 basis point Fed hike by November, before the central bank shifts to rate cuts next year. Traders are wary of intervention after levels around 146 spurred the first yen buying by Japanese officials in a generation last September. On Thursday, the dollar reached 146.565 yen for the first time since Nov. 10.

Persons: Dado Ruvic, Jerome Powell, Kazuo Ueda, Richard Franulovich, Powell, Kristina Clifton, Kevin Buckland, Simon Cameron, Moore Organizations: REUTERS, Rights, U.S, Federal, Bank of Japan, U.S ., Westpac, Treasury, Traders, Sterling, Commonwealth Bank of Australia, Thomson Locations: Bank, Jackson Hole , Wyoming, China's, Beijing, China

☆ Dollar hovers near highs as U.S. yields surge; PBOC bolsters yuan
▼ + stars: | 2023-08-22 | by ( ) www.cnbc.com time to read: +3 min

In this photo illustration, 100 U.S. dollar notes and 100 yuan notes are displayed. Money markets currently lay a bit less than 50/50 odds for another 25 basis point Fed hike by November, before the central bank shifts to rate cuts next year. The offshore yuan was little changed at 7.2872, after firming about 0.1% after the fixing. The Australian dollar , which often trades as a proxy to China, was also little changed at $0.6413 after initially strengthening slightly following the fixing. The Aussie has grinded higher in recent sessions after dropping to a 9 1/2-month low of $0.6365 on Thursday.

Persons: Richard Franulovich, Jerome Powell's, Franulovich, Powell, Kristina Clifton Organizations: U.S, U.S ., Westpac, Treasury, Commonwealth Bank of Australia Locations: Jackson Hole , Wyoming, China's, Beijing, China

☆ Rupee at risk of falling to record low on surging US yields
▼ + stars: | 2023-08-17 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

MUMBAI, Aug 17 (Reuters) - The Indian rupee on Thursday is expected to open just shy of its record low in the wake of a further rise in U.S yields on bets that interest rates are likely to say higher for longer. Non-deliverable forwards indicate the rupee will open at around 83.20-83.22 to the U.S. dollar compared with 82.95 in the previous session. The rupee's record low is 83.29, reached in October 2022. A decline below 83.30 for the rupee "would trigger a new round" of dollar buying and "you can expect a sizeable move", he said. Resilient U.S. economic data and worries over supply have been among the reasons cited by analysts for the jump in U.S. yields.

Persons: Nimesh Vora, Nivedita Organizations: U.S, NDF, Reserve Bank of, U.S . Federal, Fed, DBS Research, Brent, Thomson Locations: MUMBAI, India, Reserve Bank of India, Asia

☆ Dollar shines on US economic resilience; Aussie tumbles after employment data
▼ + stars: | 2023-08-17 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

The Australian dollar tumbled after the country's July employment unexpectedly fell while its jobless rate ticked up more than expected. The Aussie sank nearly 1% after the release of the figures, dragging the New Zealand dollar alongside it. The yen bottomed out at 146.565 per dollar in early Asia trade, its lowest level since November, having come under renewed pressure as a result of interest rate differentials between the U.S. and Japan. "We've got the U.S. staying really resilient still, under the weight of high interest rates," said Carol Kong, a currency strategist at Commonwealth Bank of Australia (CBA). "We expect 25-basis-point rate hikes in both September and November, for a peak policy rate of 5.75%," said Wells Fargo economist Nick Bennenbroek of the Bank of England's monetary policy outlook.

Persons: Dado Ruvic, homebuilding, We've, Carol Kong, Kong, Wells, Nick Bennenbroek, Matt Simpson, there's, CBA's, Rae Wee, Gerry Doyle Organizations: REUTERS, Rights, dovish Bank of Japan, Aussie, New Zealand, U.S, Federal Reserve, Commonwealth Bank of Australia, Fed, FX, Bank of England, Bank, Zealand, Reserve Bank of Australia, People's Bank of China, The U.S, Thomson Locations: Asia, Japan, China, CBA's Kong, The

☆ Dollar shines on U.S. economic resilience, Aussie tumbles after employment data
▼ + stars: | 2023-08-17 | by ( ) www.cnbc.com time to read: +4 min

Hundred dollar bills are seen in this photo illustraiton in Warsaw, Poland on Sept. 21, 2022. The Australian dollar tumbled after the country's July employment unexpectedly fell while its jobless rate ticked up more than expected. The Aussie sank nearly 1% after the release of the figures, dragging the New Zealand dollar alongside it. "We've got the U.S. staying really resilient still, under the weight of high interest rates," said Carol Kong, a currency strategist at Commonwealth Bank of Australia, or CBA. "We expect 25-basis-point rate hikes in both September and November, for a peak policy rate of 5.75%," said Wells Fargo economist Nick Bennenbroek of the Bank of England's monetary policy outlook.

Persons: homebuilding, We've, Carol Kong, Kong, Wells, Nick Bennenbroek, Matt Simpson, there's, CBA's Organizations: dovish Bank of Japan, Aussie, New Zealand, U.S, Federal Reserve, Commonwealth Bank of Australia, Fed, FX, Bank of England, Bank, Australian, Zealand, Reserve Bank of Australia, People's Bank of China, The U.S Locations: Warsaw, Poland, Asia, Japan, China, CBA's Kong, The

Analysts polled by Reuters had forecast inflation would rise to 3.0% from the 27-month low of 2.8% recorded in June. Money markets increased bets for a quarter-percentage-point rate hike in September. They saw a 35% probability immediately after the release of the inflation data, up from 22% beforehand, and then settled back to a 31% chance. Not all economists thought the stronger-than-expected price data would tip the scales toward a hike as soon as its next meeting in September. The Bank of Canada, after its last rate hike in July, said it would study data closely before moving again.

Persons: Carlos Osorio, Statscan, Derek Holt, Tiago Figueiredo, Jules Boudreau, Ismail Shakil, Steve Scherer, Dale Smith, Paul Simao, Jonathan Oatis Organizations: REUTERS, OTTAWA, Reuters, Statistics, Bank of, Scotiabank, Canadian, Bank of Canada, Desjardins Group, Mackenzie Investments, Thomson Locations: Toronto , Ontario, Canada, Statistics Canada, Mackenzie, Ottawa

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. Hotter-than-expected U.S. producer prices data last week fanned concerns that the Federal Reserve could keep interest rates higher for longer, driving up U.S. Treasury yields and weighing on rate-sensitive big technology and growth stocks. Market focus will be on quarterly earnings from major U.S. retailers including Walmart (WMT.N) and Target (TGT.N) this week. Economic data expected includes retail sales for July as well as industrial production and jobless claims numbers. ET, Dow e-minis were up 59 points, or 0.17%, S&P 500 e-minis were up 8 points, or 0.18%, and Nasdaq 100 e-minis were up 41.5 points, or 0.27%.

Persons: Brendan McDermid, Tesla, We've, Peter Cardillo, treasuries, Goldman Sachs, Amruta Khandekar, Arun Koyyur, Maju Samuel Organizations: New York Stock Exchange, REUTERS, China AMC, Dow, Nasdaq, Federal Reserve, U.S, Treasury, Investors, Spartan Capital Securities, Microsoft, Apple Inc, Fed, Walmart, Dow e, AMC Entertainment, Nikola, U.S . Steel, Thomson Locations: New York City, U.S, China, Delaware, Cleveland, Bengaluru

☆ Take Five: Are we there yet?
▼ + stars: | 2023-08-11 | by ( ) www.reuters.com time to read: +6 min

China retail sales data due on Tuesday will show whether spending can cling to the around-3% growth rate in June - a far cry from the double-digit readings earlier in the year. Meanwhile, investors will get another look at the health of the U.S. consumer with Tuesday’s retail sales report. June retail sales, released last month, rose less than expected, but nonetheless showed consumers weathered higher interest rates. Chart shows change in U.S. retail sales on a monthly basis. After shooting to a nine-year peak of 6.55% - prompting the central bank to step in to restore calm - yields have settled around 0.58%.

Persons: Kevin Buckland, Ira Iosebashvili, Naomi Rovnick, Karin Strohecker, Amanda Cooper, Christine Lagarde, there's, BoE, Morgan Stanley, Sharon Singleton Organizations: PMI, Reuters Graphics Reuters, European Central Bank, Reuters, Bank of, BOE, Bank of England, Citi, Confederation, Thomson Locations: West, Britain, U.S, Tokyo, New York, London, China, Jackson Hole , Wyoming

☆ Dollar in holding pattern as US inflation test looms; PBOC supports yuan
▼ + stars: | 2023-08-10 | by ( Kevin Buckland | ) www.reuters.com time to read: +4 min

Banknotes of Chinese yuan and U.S. dollar are seen in this illustration picture taken September 29, 2022. The Australian and New Zealand dollars hovered close to two-month lows amid a worsening economic outlook for key trade partner China. The dollar was little changed at 143.79 yen , after earlier drifting to the highest since July 7 at 143.90. Elsewhere, the Chinese yuan tacked on about 0.1% to 7.2235 per dollar in offshore trading after the PBOC set a stronger official mid-point than the market consensus for a second day. New Zealand's kiwi was flat at $0.6053, just above Tuesday's low of $0.6035, which was the weakest since June 8.

Persons: Florence Lo, Tony Sycamore, Sycamore, Kristina Clifton, Joe Biden, Kevin Buckland, Shri Navaratnam Organizations: REUTERS, Federal Reserve, Bank of Japan, New, People's Bank of China, Street, Fed, Commonwealth Bank of Australia, U.S, Thomson Locations: New Zealand, China, U.S, Japan

☆ Dollar in holding pattern as U.S. inflation test looms, PBOC supports yuan
▼ + stars: | 2023-08-10 | by ( ) www.cnbc.com time to read: +4 min

A Chinese 100 yuan banknote, a 1 U.S. dollar bill and a 50 euro banknote are lying on a table. The Australian and New Zealand dollars hovered close to two-month lows amid a worsening economic outlook for key trade partner China. The dollar was little changed at 143.79 yen , after earlier drifting to the highest since July 7 at 143.90. Elsewhere, the Chinese yuan tacked on about 0.1% to 7.2235 per dollar in offshore trading after the PBOC set a stronger official mid-point than the market consensus for a second day. New Zealand's kiwi was flat at $0.6053, just above Tuesday's low of $0.6035, which was the weakest since June 8.

Persons: —, Tony Sycamore, Sycamore, Kristina Clifton, Joe Biden Organizations: Federal Reserve, Bank of Japan, New, People's Bank of China, Street, Fed, Commonwealth Bank of Australia, U.S Locations: U.S, New Zealand, China, Japan

☆ Dollar eases as China deflation lures investors into risk assets
▼ + stars: | 2023-08-09 | by ( Amanda Cooper | ) www.reuters.com time to read: +3 min

LONDON, Aug 9 (Reuters) - The dollar eased on Wednesday after data showed the Chinese economy slipped into deflation last month, which upped the chances for the government to roll out extra stimulus measures and nudged investors into risk assets. Dollar selling by state-owned Chinese banks helped the yuan rally from a one-month low, dealers said. The Chinese central bank's stronger-than-expected exchange-rate fixing at 7.1588 per dollar before the open signalled its discomfort with the yuan's recent declines. The dollar index - which measures the performance of the U.S. currency against six others - eased 0.1%, paring some of Tuesday's 0.47% rise. "Chinese inflation data showed that consumer prices have barely moved in July, confirming that the world’s second-largest economy is stalling and may be moving into deflation," he said.

Persons: There's, Ray Attrill, Ricardo Evangelista, Chris Scicluna, Patrick Harker, Raphael Bostic, Michelle Bowman, Kevin Buckland, Brigid Riley, Simon Cameron, Moore, Kirsten Donovan Organizations: National Australia Bank, Federal Reserve, Daiwa Capital, ECB, Bank of England, Philadelphia Fed, Atlanta Fed, Fed, Thomson Locations: China, Tokyo

☆ Canada unexpectedly sheds jobs in July, central bank seen pausing hikes
▼ + stars: | 2023-08-04 | by ( Ismail Shakil | ) www.reuters.com time to read: +3 min

Money markets see a 28% chance of a rate hike in September, down slightly from 32% before the data. Money markets see a 60% chance of another rate hike by the end of the year, down from 80% before the data. "I think their (the Bank's) conclusion from this would be that it's probably not a bad idea to pause on the rate hike front," he said by phone. While headline figures indicated some slowness, the average hourly wage for permanent employees - a figure the Bank of Canada watches closely - rose 5.0% from July 2022. "The softer labor market data support our view that the Bank is unlikely to follow through with current market pricing by raising rates further," he said.

Persons: Chris Helgren, Doug Porter, Royce Mendes, Stephen Brown, Statscan, David Ljunggren, Dale Smith, Fergal Smith, Jonathan Oatis, Nick Zieminski Organizations: REUTERS, OTTAWA, Bank of Canada, Reuters, Statistics, The, BMO Capital Markets, U.S ., Desjardins, North, Capital Economics, Thomson Locations: Toronto , Ontario, Canada, Canadian, Statistics Canada, North America, Ottawa, Toronto

☆ Canadian dollar hits 2-month low after surprise jobs loss
▼ + stars: | 2023-08-04 | by ( Fergal Smith | ) www.reuters.com time to read: +2 min

A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto January 23, 2015. For the week, the risk-sensitive currency was down 0.9%, its third straight weekly decline, as a jump in long-term bond yields rattled equity market investors. The Canadian economy shed 6,400 jobs in July, missing estimates for a gain of 21,100, while the jobless rate ticked up to 5.5%. Money markets see chances of another Bank of Canada rate hike this year at about 50%, down from 80% before the jobs report. Canadian government bond yields fell across the curve.

Persons: Mark Blinch, Jay Zhao, Murray, Fergal Smith, Grant McCool Organizations: REUTERS, greenback, Canadian, U.S, Bank of Canada, Monex Canada, Canada, U.S ., Thomson Locations: Toronto, TORONTO

☆ BoE’s inflation firefighting will outlast peers
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +2 min

The Bank of England on Thursday raised UK interest rates by a quarter of a percentage point to a 15-year peak of 5.25%. Governor Andrew Bailey and his colleagues also vowed monetary policy would remain “sufficiently restrictive for sufficiently long” to bring inflation down to the BoE’s 2% target. As for the BoE, traders are betting that rates will hit 5.5% in September and stay elevated for the whole of next year. Despite an early start, Bailey’s fight against stubborn inflation is likely to drag on for longer. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Andrew Bailey, BoE, Bailey, Bailey’s, Francesco Guerrera, Lisa Jucca, Oliver Taslic Organizations: Reuters, Bank of England, U.S . Federal Reserve, European Central Bank ., ECB, Twitter, Thomson

☆ VIEW Bank of England raises rates for a 14th time
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +7 min

The BoE raised interest rates by 25 basis points to 5.25% and said high inflation meant it was unlikely to stop raising rates any time soon. However, with Thursday's decision, traders began to price in a lower peak in UK rates. MONEY MARKETS: Interest-rate derivatives showed traders believe UK rates will peak around 5.67% by March, compared with an expected peak of 5.73% in the run-up to the decision. Rising interest rates means higher borrowing costs, which will lead to larger monthly mortgage payments for many homeowners." The Bank of England remains committed to bringing inflation down, unfortunately raising interest rates is one of the only tools the Bank can use to sap demand out of the economy."

Persons: BoE, Sterling, VIVEK PAUL, we’ll, STUART COLE, JEREMY BATSTONE, CARR, RAYMOND JAMES, MARCUS BROOKES, ” SEEMA SHAH, Rishi Sunak, GILES COGHLAN, THOMAS PUGH, JOHN LEIPER, Amanda Cooper, Samuel Indyk Organizations: Bank of England, FTSE, BLACKROCK, LONDON, TOM HOPKINS, Bank of, RSM, Bank, EMEA, Thomson Locations: LONDON, EUROPEAN, U.S

Sterling initially dropped, reflecting disappointment after traders had priced in a 30% chance of another 50 bp hike. Longer-term gilt yields, more responsive to investors' perceptions about the economic growth trajectory, rose by the most in a month. Governor of the Bank of England Andrew Bailey attends a press conference for the Monetary Policy Report August 2023, at the Bank of England in London, Britain, August 3, 2023. Two-year gilt yields have risen by more than 120 basis points this year, more than double the increase of their U.S. equivalent. On Thursday, two-year gilt yields were down 5 bps in late trade, while those on 30-year debt rose 10 bps, the most in a month, to 4.66%.

Persons: BoE, Andy Burgess, Andrew Bailey, Sterling, we've, Bank of England Andrew Bailey, Alastair Grant, Jeremy Hunt, Carl Shepherd, they'll, juicier, Peter Goves, Kirsten Donovan Organizations: Bank, Bank of England, Monetary, REUTERS, Conservative, Newton Investment Management, Swiss, MFS Investment Management, Reuters Graphics, Thomson Locations: AMSTERDAM, LGIM, London, Britain, U.S

While an ISM survey offered a tough assessment of U.S. manufacturing conditions, so-called hard data suggest the sector is shuffling along. Federal Reserve data in June showed factory production rebounded in the second quarter, ending two straight quarterly declines. Meanwhile, U.S. construction spending increased solidly last month and May's data was revised higher, boosted by outlays in both single and multifamily housing projects, the Commerce Department said. China's Caixin/S&P Global manufacturing purchasing managers' index (PMI) missed analysts forecasts and showed the first decline in activity since April. Money markets now see a 60% probability that the Bank of England will hike rates by 25 basis points on Thursday.

Persons: Dado Ruvic, Steven Ricchiuto, Carlos Casanova, Kit Juckes, Sterling, Herbert Lash, Joice Alves, Ankur Banerjee, Alex Richardson, Hugh Lawson, Alexander Smith Organizations: REUTERS, Reuters, Federal, outlays, Commerce Department, Labor, Survey, Labor Department, Mizuho Securities USA, Reserve Bank of Australia, Bank of Japan, U.S, Natixis Investment, P Global, European Central Bank, ECB, Societe Generale, Bank of, Thomson Locations: Asia, Hong Kong, U.S, Bank of England, London, Singapore

☆ Aussie set for biggest one-day drop since March, yen at 3-week low
▼ + stars: | 2023-08-01 | by ( Joice Alves | ) www.reuters.com time to read: +4 min

The Aussie fell 1.4% to $0.6626, wiping out the 0.87% gains it clocked in July and set for its sharpest daily drop since March. "I think it was right that the RBA held today, given trimmed mean inflation and unemployment matched the RBA's forecasts. China's Caixin/S&P Global manufacturing purchasing managers' index (PMI) missed analysts forecasts and showed the first decline in activity since April. The euro eased 0.2% to $1.0975, not too far from an almost three-week low touched on Friday. Money markets now see a 60% probability that the Bank of England will hike rates by 25 basis points on Thursday.

Persons: David Gray, Matt Simpson, Carlos Casanova, Kit Juckes, Sterling, Joice Alves, Ankur Banerjee, Alex Richardson, Hugh Lawson Organizations: REUTERS, Australian, Reserve Bank of Australia, Bank of Japan's, City, Federal, P Global, European Central Bank, ECB, Societe Generale, Bank of, Thomson Locations: Sydney, Australia, China, Asia, Hong Kong, U.S, Bank of England, London, Singapore

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