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The narrowing rate differentials between the U.S. and Europe, as markets price in more European rate increases than in the U.S., has been boosting European currencies in recent months. The Fed has guided markets away from the possibility of rate cuts this year, though markets are pricing them in nonetheless. The European Central Bank announces its rate decision later in the day. "So I think central banks, including the Fed, are at or very near the peak in their cash rates." The Norwegian crown took a short trip after Norway's central bank raised interest rates by 25 basis points as expected.

☆ Morning Bid: Hike and hold, bank angst and Apple
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +5 min

As the Fed delivered what markets assume will be the last rate hike of a brutal 13-month, 500-basis-point tightening cycle, further aftershocks from the March bank blowups reverberated in the background. And given they had advance knowledge of next week's quarterly loan survey before Wednesday's rate decision, it suggests the bigger picture they see remains somewhat equivocal. Norway's central bank raised interest rates as expected and signalled more to come. Events to watch for on Thursday:* European Central Bank policy decision, statement and news conference* U.S. first quarter unit labor costs and productivity, April layoffs, March trade balance, weekly jobless claims. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Stocks on edge, Aussie surges after RBA surprise
▼ + stars: | 2023-05-02 | by ( Tom Westbrook | ) www.reuters.com time to read: +3 min

SINGAPORE, May 2 (Reuters) - Asian shares wobbled in cautious trade on Tuesday ahead of a series of data releases and central bank meetings, which began with a surprise rate hike in Australia that boosted the local dollar. Markets were positioned for Australia's central bank to stay on hold and a 25 basis point hike sent the Aussie dollar up about 0.8% to its highest in a week at $0.6692. Three-year Aussie government bond yields also jumped, while Australian stocks (.AXJO) slipped 0.7%. "So as well as the increase today, that's supporting the Aussie dollar," he said, though he warned that could unwind as there's a "reasonable chance" the Federal Reserve takes a similar approach at its meeting on Wednesday. Two-year Treasury yields , which track short-term U.S. rate expectations were steady at 4.1451% in Asia.

☆ Stocks on edge as traders wait on central bankers
▼ + stars: | 2023-05-02 | by ( Tom Westbrook | ) www.reuters.com time to read: +4 min

Treasury yields rose in response and expectations firmed to near certain for one final U.S. rate hike this week. JPMorgan shares rose 2.1%. The policy stands in contrast to the U.S. and Europe where central banks are deep into a hiking cycle and still going. On the monetary policy front the Reserve Bank of Australia (RBA) is first up in a week that brings central bank meetings in the U.S., Europe and Norway. Overnight, Treasury Secretary Janet Yellen said the Treasury might run out of money to cover obligations as soon as June 1.

☆ Swiss central bank promises regulation review after collapse of Credit Suisse
▼ + stars: | 2023-04-28 | by ( Elliot Smith | ) www.cnbc.com time to read: +7 min

Thomas Jordan, president of the Swiss National Bank (SNB), speaks during the bank's annual general meeting in Bern, Switzerland, on Friday, April 28, 2023. Bloomberg | Bloomberg | Getty ImagesThe Swiss National Bank on Friday pledged to review banking regulations during its annual general meeting in Bern, following recent turmoil involving Credit Suisse. The central bank played a key role in brokering the rescue of Credit Suisse over the course of a chaotic weekend in March, as a flight of deposits and plummeting share price took the 167-year-old institution to the brink of collapse. The deal remains mired in controversy and legal challenges, particularly over the lack of investor input and the unconventional decision to wipe out 15 billion Swiss francs ($16.8 billion) of Credit Suisse AT1 bonds. He added that this would mean his central bank could would be able to provide the necessary liquidity, in times of stress, without the need for emergency law.

☆ Powerful Swiss central bank faces reform calls in wake of Credit Suisse rescue
▼ + stars: | 2023-04-28 | by ( John Revill | ) www.reuters.com time to read: +6 min

[1/2] The Swiss National Bank (SNB) building is seen near the Limmat river in Zurich, Switzerland March 23, 2023. The governance concerns have been brought centre-stage by the search for a new member to replace Andrea Maechler, the first woman to serve on the SNB's governing board. The Swiss parliament would have to approve any expansion of the SNB's board. Still, the SNB Observatory, a group of economists set up to stimulate a debate about the SNB, has suggested that the small committee meant the central bank was susceptible to group think. Thomas Stucki, a former head of asset management at the SNB, said it was typical for central bank chairmen to dominate decision-making.

☆ Stockmarket rise helps SNB post Q1 profit of 26.9 bln Swiss francs
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +2 min

The bank made a profit of 24.2 billion francs from its foreign currency positions and 4.3 billion from an increase in the value of the gold it holds. The result will come as a relief to the SNB, which posted a loss of 132.5 billion francs for 2022 overall, the biggest in its 115-year history. In the latest results, the SNB's foreign currency gains were derived from interest of 2.5 billion francs paid on the bonds it holds and 900 million francs in dividends from its stock portfolio. Its also reported a valuation increase of 8.5 billion francs on its massive bond holdings while its equities holdings, which include stakes in most large U.S. companies, increased by 14.7 billion francs in value, the SNB said. Still, the central bank will have been relieved from a monetary policy perspective, UBS economist Alessandro Bee said.

[1/2] A person walks past a First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. REUTERS/Mike Segar/File PhotoApril 26 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. An unholy trinity of U.S. developments on Tuesday - poor corporate earnings, a bank's value going up in smoke and slumping consumer confidence - will likely set an extremely gloomy tone for Asian markets on Wednesday. The wider U.S. regional banking index's 4% slide - its fourth straight decline - took its year-to-date decline to 25%. If there is a tailwind for Asian markets on Wednesday amid the headwinds it will be the after-hours results from Google's parent company Alphabet GOOGL.O and Microsoft .MSFT.O.

☆ Debt crisis is a scary white swan for US economy
▼ + stars: | 2023-04-25 | by ( Ben Winck | ) www.reuters.com time to read: +8 min

If Democrats and Republicans can’t agree to lift the government’s borrowing limit, the country could suffer an unprecedented and catastrophic default on its debt. The standoff over the debt ceiling is a white swan, or an entirely predictable, very frequent event that has the potential to be as catastrophic as its darker sibling. That is why, in all past scuffles over government borrowing, Congress ended up raising or suspending the debt ceiling. Uncertainty over the timing of the agreement led to the most volatile week for financial markets since the 2008 financial crisis. Failure to lift the debt ceiling soon can spark a vicious cycle of market anxiety, rising borrowing costs and bank stress.

☆ Credit Suisse withdrawals topped $68 billion as the bank veered towards collapse
▼ + stars: | 2023-04-24 | by ( Hanna Ziady | ) edition.cnn.com time to read: +1 min

London CNN —Credit Suisse suffered outflows of 61.2 billion Swiss francs ($68.7 billion) in the first three months of the year and customers are still pulling their money from the bank as UBS races to complete a rescue of its stricken rival. “Credit Suisse experienced significant net asset outflows, in particular in the second half of March 2023. Credit Suisse’s first-quarter earnings could be its last after it was bought last month by UBS (UBS) in an emergency rescue deal orchestrated by the Swiss government. Credit Suisse (CS) reported a 1.3 billion franc ($1.3 billion) loss for the first quarter, extending a losing streak that began in 2021. The bank posted a loss of 7.3 billion Swiss francs ($7.9 billion) in 2022, its biggest annual loss since the financial crisis in 2008.

☆ Stocks making the biggest premarket moves: Coca-Cola, First Solar, C3.ai and more
▼ + stars: | 2023-04-24 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

First Solar — Shares dropped 2.5% in the premarket following a downgrade by Citi to sell from neutral. Credit Suisse — U.S.-listed shares of the Swiss bank gained about 2% in the premarket. Credit Suisse said it experienced net asset outflows of 61.2 billion Swiss francs ($68 billion) during the first quarter. However, it reported 12.43 billion Swiss franc profit for the quarter thanks to the write-off of 15 billion Swiss francs of AT1 bonds. Albemarle — Shares of the mining company gained nearly 3% in premarket trading, trimming Albemarle's losses from last week.

☆ Dollar slides as rate cuts priced in; yen falls ahead of BOJ meeting
▼ + stars: | 2023-04-24 | by ( ) www.cnbc.com time to read: +3 min

The dollar fell to a more than one-week low against major currencies on Monday in generally thin trading, as investors continued to price in interest rate cuts this year by the Federal Reserve after a widely expected rate increase at next week's policy meeting. Fed policymakers are widely expected to raise rates by another 25 bps at next week's meeting, but they are seen pausing in June. The rate futures market has also factored in roughly 50 bps of rate cuts by the end of the year. There were likewise hawkish remarks from Belgian central bank chief and ECB policy maker Pierre Wunsch. Beyond the excitement of the euro/yen cross, currency markets were quiet, as traders waited for key central bank meetings, the first of which is the BOJ on Friday, the first Ueda will chair.

It is the first major lawsuit in the public domain to be filed over the Swiss decision to wipe out around $18 billion of Credit Suisse's Additional Tier 1 (AT1) debt during the 3 billion Swiss franc all-share rescue deal last month, which stunned markets and alerted litigators. The appeal against FINMA, the Swiss Financial Market Supervisory Authority that ordered the writedown, was filed on April 18 in the Federal Administrative Court in St Gallen, north east Switzerland. "FINMA's decision undermines international confidence in the legal certainty and reliability of the Swiss financial center," said Thomas Werlen, Quinn Emanuel's Swiss managing partner. FINMA declined to comment and Credit Suisse did not immediately respond to a Reuters request for comment. ($1 = 0.8941 Swiss francs)Reporting by Jahnavi Nidumolu in Bengaluru; Editing by Savio D'SouzaOur Standards: The Thomson Reuters Trust Principles.

☆ Factbox: Lawsuits lodged over state-backed Credit Suisse takeover
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +2 min

April 21 (Reuters) - Several lawsuits have been filed over the terms of last month's emergency deal to save Swiss lender Credit Suisse (CSGN.S) by selling it to its bigger rival UBS (UBSG.S). Around 16 billion Swiss francs of Additional Tier 1 (AT1) Credit Suisse debt was written down to zero, in a shock to markets. But it has declined to name claimants or provide an ongoing tally of those lodged by bondholders or their lawyers. UNITED STATESOne of the first proposed U.S. class action s against Credit Suisse over alleged false or misleading statements pre-dates the rescue. Credit Suisse declined to comment.

☆ Credit Suisse bondholders sue Swiss authorities
▼ + stars: | 2023-04-21 | by ( ) edition.cnn.com time to read: +2 min

Investors representing more than 4.5 billion Swiss francs ($5 billion) of Credit Suisse bonds have sued the Swiss financial regulator over its decision to wipe out their investments during last month’s emergency government-orchestrated takeover. Law firm Quinn Emanuel Urquhart & Sullivan, which is representing the bondholders, said Friday the move was the first in a series of steps to seek redress for clients it said had been unlawfully deprived of their property rights during the takeover of Credit Suisse (CS) by bigger rival UBS (UBS). The appeal against FINMA, the Swiss Financial Market Supervisory Authority, which ordered the writedown, was filed on April 18 in the Federal Administrative Court in St Gallen, north-east Switzerland. “FINMA’s decision undermines international confidence in the legal certainty and reliability of the Swiss financial center,” said Thomas Werlen, Quinn Emanuel’s Swiss managing partner. The Federal Administrative Court said it was still receiving complaints but declined to name claimants or comment on how many had been lodged by bondholders or their lawyers.

[1/2] A view shows the logo of Credit Suisse on a building near the Hallenstadion where Credit Suisse Annual General Meeting took place, two weeks after being bought by rival UBS in a government-brokered rescue, in Zurich, Switzerland, April 4, 2023. UBS and Credit Suisse declined to comment. What's more, UBS doesn't tend to lend to potential clients as Credit Suisse has often done, a move that can persuade some customers. "There are clearly parts of Credit Suisse that have had a bad culture," UBS Chairman Colm Kelleher told reporters on March 29. UBS ranked 14th advising on mergers globally last year, behind 11th placed Credit Suisse, according to data compiled by Dealogic.

TOKYO, April 19 (Reuters) - Data showing British inflation stayed above 10% in March meant the pound climbed against the dollar while other currencies dipped, with the greenback underpinned by a tick-up in U.S. yields. Sterling was last 0.25% higher at $1.2454, heading back to last week's 10-month high, after data showed British consumer price inflation eased by less than expected in March to 10.1% from February's 10.4%. However, he added: "With the Fed expected to hike in May and the ECB to hike by more over the coming months, the positive impetus from this data for the pound will likely be contained." Expectations for higher official rates in a market relative to those elsewhere typically drag money market and government bond yields higher, attracting cash into a country while boosting its currency. "It's the volatility in the bond market that's driving the dollar, not the other way round."

☆ Analysis: Rates shift gives European currencies fresh legs
▼ + stars: | 2023-04-19 | by ( Alun John | ) www.reuters.com time to read: +5 min

But markets expect another 75 bps of European Central Bank rate hikes, with the deposit rate rising to a peak in the autumn. Expectations for higher official interest rates typically drag money market and government bond yields higher, attracting investor cash into a country and boosting its currency. "An interest rate differential that is flat between the two regions would be equivalent to a euro/dollar move up to around 1.20." TURNAROUNDThe Federal Reserve's relentless rate hikes sent the dollar to 20-year highs last year as other big central banks moved more slowly. "But interestingly last month has seen the pound stronger, because of limited spillovers and declining U.S. and European rate expectations."

☆ Rivals can feast on Credit Suisse client spoils
▼ + stars: | 2023-04-17 | by ( Lisa Jucca | ) www.reuters.com time to read: +4 min

Credit Suisse saw 110 billion Swiss francs flying out the door in the final quarter of 2022. These outflows were chiefly cash from wealthy clients and some deposits at Credit Suisse's Swiss bank unit. Those holding accounts at both Credit Suisse and UBS may dislike too much wealth concentration. And Credit Suisse is hardly incentivised to transfer securities swiftly. The minister said this was needed because Credit Suisse customers had again withdrawn money.

☆ Dollar set for longest stretch of weekly losses since 2020
▼ + stars: | 2023-04-14 | by ( Amanda Cooper | ) www.reuters.com time to read: +4 min

The dollar index , which measures the performance of the U.S. currency against six others, slid to a roughly one-year low of 100.78. This would mark a fifth straight weekly loss, the longest such stretch since July 2020. Out of the G10 currencies, investors hold the largest bearish position in the dollar against the euro. The New Zealand dollar rose 0.1% to $0.63035, after jumping 1.3% on Thursday. The Japanese yen rose marginally, leaving the dollar 0.2% down on the day at 132.27, while the offshore yuan rose 0.4% to 6.8463 per dollar.

MSCI's Europe index, for example, still trades more than a point below its average historic valuation - with the index priced at less than 13 times its 12-month forward earnings. The top sectoral weighting in the STOXX Europe 50, for example, is healthcare - at almost 23%. With British-based stocks the biggest country weighting in the STOXX Europe index at 26%, the other top four sectors in the index include the food, beverages and tobacco grouping, consumer products, industrial goods and energy. The dollar peaked late last year against most European currencies as the Federal Reserve raced to ratchet up interest rates. Some think the slide in the dollar index of some 12% since last September is barely half of the whole move.

Summary Dollar index on course for fifth weekly lossesEuro touches two-month highLONDON/SINGAPORE, April 13 (Reuters) - The dollar fell to a two-month low on Thursday after data showed U.S. inflation slowed sharply in March, bolstering hopes that the Federal Reserve's rate-hiking campaign is either already finished or will be by May. The dollar dropped after the data was released and weakened further on Thursday, helping the euro rise 0.27% to a two-month high of $1.102. The dollar index , which measures the greenback against six major peer, was last down 0.2% at 101.28, its lowest since the start of February. John Hardy, head of FX strategy at Saxo Bank, said the inflation data "left the market with not much to go on". He said he expects the dollar to grind lower from here as inflation cools and the economy slows.

☆ Marketmind: Dollar skids, China revs
▼ + stars: | 2023-04-13 | by ( ) www.reuters.com time to read: +4 min

The dollar's DXY index - the Swiss franc hit its strongest level in more than two years. Taking in all the information, futures markets still show a near 75% chance of another quarter point rate rise to the 5.0-5.25% range in May, but more than 60 basis points of cuts from there to yearend. Two-year Treasury yields were stuck at 4%, with producer price inflation and weekly jobless up next on Thursday's data calendar. European markets were further pepped by reports the European Central Bank was minded to downsize its rate hikes to a quarter point in May after six successive half point moves. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ European assets rally after data shows U.S. inflation slowing
▼ + stars: | 2023-04-12 | by ( ) www.reuters.com time to read: 1 min

LONDON, April 12 (Reuters) - European stocks, currencies and bonds rallied on Wednesday after data showing headline U.S. inflation eased last month tempered expectations for further rate hikes from the Federal Reserve. Other European currencies such as Norway's crown and the Swiss franc strengthened, with the franc reaching its firmest since June 2021. Germany's 10 year bond yield, the benchmark for the euro zone , fell and was last down 1 basis point at 2.293%. Bond yields move inversely to prices. Reporting by European markets team, editing by Harry RobertsonOur Standards: The Thomson Reuters Trust Principles.

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