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☆ Asia shares skid as rate-hike fears unnerve investors
▼ + stars: | 2023-02-17 | by ( Ankur Banerjee | ) www.reuters.com time to read: +3 min

Tracking Wall Street, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was 0.68% lower and was set for its third straight week of losses. China shares (.SSEC) slipped 0.18% while Hong Kong's Hang Seng Index (.HSI) fell 0.09%. "The latest data supports the Fed view of needing to continue to raise rates and hold them there higher for longer." The market is now pricing U.S. interest rates to peak at 5.28% in July and remain above 5% till the end of the year. The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 4.2 basis points at 4.661%.

☆ Premarket stocks: SpinCos are the new SPACs
▼ + stars: | 2023-02-17 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

The parent company may distribute the new company’s stock to its shareholders, allowing them to own shares in both. These smaller, newly formed companies are still in the process of establishing themselves in the market and often have lower profit margins than their parent company. It costs a lot to borrow these days and investors are looking for high profits and value stocks, writes Goldman. The Federal Reserve’s interest rate hikes have added significantly to the cost of government debt. “As we add trillion after trillion to our debt, the problem only gets worse and compounds.

☆ CNBC Daily Open: Markets fall on hot economy — and chance of 0.5% interest rate hikes
▼ + stars: | 2023-02-17 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. With each hotter-than-expected inflation report, markets rose. Markets had widely anticipated, and priced in, 25 basis-point interest rate hikes for the Fed's next two meetings. Cleveland Fed President Loretta Mester echoed Bullard's hawkishness, saying she wants higher rate increases. Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ US stocks end mixed as Fed officials sound off on inflation fight and path of future rate hikes
▼ + stars: | 2023-02-17 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

US stocks closed mixed as top Fed officials weighed in on what it will take to rein in inflation. Richmond Fed President Thomas Barkin said he supports raising rates in 25 basis-point increments. Elsewhere, Fed Governor Michelle Bowman said inflation remains "much too high" and that the central bank should continue raising rates. On Thursday, St. Louis Fed President James Bullard said delivering another rate increase will "lock in" easing inflation, while Cleveland Fed President Loretta Mester said she had seen a "compelling economic case" for delivering another half-point hike in the fed funds rate at the previous central bank meeting. For oil, "one major upside risk to prices remains China and its recovery from the transition to living with COVID.

☆ CNBC Daily Open: Markets drop on hot economy — and chance of 0.5% interest rate hikes
▼ + stars: | 2023-02-17 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

James Bullard, president of Federal Reserve Bank of St. Louis, at the Jackson Hole economic symposium, in Moran, Wyoming, U.S., on Thursday, Aug. 22, 2019. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. With each hotter-than-expected inflation report, markets rose. Cleveland Fed President Loretta Mester echoed Bullard's hawkishness, saying she wants higher rate increases. Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ A mysterious trader known as '50 Cent' may have bet millions that volatility in the stock market will explode
▼ + stars: | 2023-02-16 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

A trader nicknamed "50 Cent" may be placing big bets that the VIX - known as Wall Street's fear index - will surge. That someone may be a trader nicknamed "50 Cent" who has in past positioned themselves to make money off of market volatility by way of consistently buying Cboe Volatility Index options that usually cost about 50 cents. The VIX - known as Wall Street's fear index - gauges the expected volatility of the US stock market. "'50 Cent' is back. Whoever "50 Cent" may be, they're anticipating a surge in the VIX as it currently sits around a 13-month low.

☆ Wholesale prices rose 0.7% in January, more than expected, fueling inflation increase
▼ + stars: | 2023-02-16 | by ( Jeff Cox | ) www.cnbc.com time to read: +3 min

Inflation rebounded in January at the wholesale level, as producer prices rose more than expected to start the year, the Labor Department reported Thursday. On a 12-month basis, headline PPI increased 6%, still elevated but well off its 11.6% peak in March 2022. The PPI increase came amid a 5% increase in energy costs but a 1% decline in food. About one-third of that increase came from a 6.2% increase in the gasoline index. The services index rose 0.4%, pushed by a 0.6% increase in prices for final demand services less trade, transportation and warehousing.

☆ Wall St slides as inflation, jobless claims data fuel rate-hike angst
▼ + stars: | 2023-02-16 | by ( Johann M Cherian | ) www.reuters.com time to read: +3 min

Another set showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, offering more evidence of the economy's resilience. "You're also seeing the job market still very strong as well, with claims coming in less than expected." The Fed is seen pushing the benchmark rate above the 5% mark by May and keeping it above those levels till the year-end. Traders will also scrutinize remarks from other Fed officials, including St. Louis Fed President James Bullard, to assess the central bank's tone on monetary policy. The S&P index recorded two new 52-week highs and one new lows, while the Nasdaq recorded 28 new highs and 22 new lows.

☆ US stocks drop on stubbornly high inflation and Fed officials' comments on more rate hike to come
▼ + stars: | 2023-02-16 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

US stocks fell Thursday as an increase in wholesale prices heightened inflation worries. Fed officials Loretta Mester and James Bullard said further rate hikes are warranted. "[Coupled] with a hotter-than-expected Consumer Price Index (CPI), markets have priced in a Federal Reserve probability of more rate hikes than initially anticipated," Quincy Krosby, chief global strategist at LPL Financial, said in a note. "With the futures market now pricing in a strong probability of two more 25-basis-point rate hikes this year, probability is edging higher for a third hike." Separately, St. Louis Fed President James Bullard reportedly said more rate increases will "lock in" slowing inflation, even alongside an economic expansion.

☆ Stocks slide as investors worry about more rate hikes
▼ + stars: | 2023-02-16 | by ( Paul R. La Monica | ) edition.cnn.com time to read: +2 min

Stocks tumbled Thursday morning after the US government’s Producer Price Index report showed that prices at the wholesale level rose faster than expected in January. The unwelcome inflation news comes just two days after the Consumer Price Index figures showed that retail prices continue to come in above forecasts. Investors also were unnerved by comments from Cleveland Federal Reserve president Loretta Mester about inflation and the economy. St. Louis Fed president James Bullard, another regional bank president who does not have a vote on the FOMC this year, is giving a speech this afternoon. Streaming media device maker Roku (ROKU) also soared following strong earnings.

☆ Morning Bid: Growth trumps rates
▼ + stars: | 2023-02-16 | by ( ) www.reuters.com time to read: +6 min

While there were some questions about seasonal adjustments in the data, economists were impressed that sales growth was pretty broad based and have scrambled to re-crunch first quarter U.S. output forecasts as a result. There may be a more mixed picture from Thursday's data slate on producer prices, housing starts and weekly jobless claims. Even though rates futures and Treasury yields ticked back a bit today, pricing now has Fed policy rates moving as high as 5.25% and staying above 5% all year. And while full-year earnings growth estimates for S&P500 companies have sunk to zero, consensus forecasts are now pencilling in a rebound of almost 12% next year. Uncertainty about the pace of growth and annual tax receipts in April makes it difficult for government officials to predict the exact "X-date", it said.

☆ Wall St eyes lower open as producer prices rebound
▼ + stars: | 2023-02-16 | by ( Johann M Cherian | ) www.reuters.com time to read: +3 min

A Labor Department report showed producer prices climbed 0.7% in January after a 0.2% fall in the previous month. "You're also seeing the job market still very strong as well, with claims coming in less than expected," Zaccarelli added. ET, Dow e-minis were down 274 points, or 0.8%, S&P 500 e-minis were down 47.5 points, or 1.14%, and Nasdaq 100 e-minis were down 185.75 points, or 1.46%. Traders will also scrutinize remarks from other Fed officials, including St. Louis Fed President James Bullard, to assess the central bank's tone on monetary policy. Reporting by Johann M Cherian and Sruthi Shankar in Bengaluru; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

Reuters GraphicsThe U.S. Labor Department is due to release its Consumer Price Index report for January at 8:30 a.m. EST (1330 GMT). For the purpose of calculating inflation, "housing" is considered a service. Reuters Graphics Reuters GraphicsEven outside of housing, the general pace of services inflation has been falling somewhat. Carpenter said he felt that one of Powell's top stated concerns, of low unemployment driving wages higher for workers in the services sector and keeping inflation elevated, may be overstated. "The link from wages to inflation is there, but small, and both services wage and price inflation are trending down," he said, noting a recent White House study indicating wage growth across key services businesses was declining.

☆ Inflation report due Tuesday has the potential to deliver some bad news
▼ + stars: | 2023-02-13 | by ( Jeff Cox | ) www.cnbc.com time to read: +1 min

Just as Federal Reserve officials have grown optimistic that inflation is cooling, news could come countering that narrative. But it looks like 2023 will show that inflation was strong — perhaps even stronger than Wall Street expectations. Excluding food and energy, so-called core CPI is projected to rise 0.3% and 5.4%, respectively. The Cleveland Fed's "Nowcast" tracker of CPI components is pointing toward inflation growth of 0.65% on a monthly basis and 6.5% year over year. Over time, the Cleveland Fed says its methodology outperforms other high-profile forecasters.

☆ The housing shortage is the root of all of America's problems
▼ + stars: | 2023-02-03 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +8 min

download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy PolicyThe US housing shortage isn't just fueling an affordability crisis. This is the gist of the "housing theory of everything," coined in 2021 by economists Sam Bowman and Ben Southwood and housing advocate John Myers. The housing theory of everything, however, suggests that this lack of affordability is far from the only American problem the housing shortage is contributing to. Even for households that are content as renters, a shortage of homes pushes more people to rent, which ultimately drives up rental rates. America's obesity rate has shot up in recent decades, and it's had significant health consequences.

☆ Gas prices have surged 40 cents in a month
▼ + stars: | 2023-01-27 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

But something unusual is happening this year: Gas prices are rocketing higher. Although that’s a far cry from the record of $5.02 a gallon last June, gas prices have increased by 12 cents in the past week and 40 cents in the past month. AAA says some states have experienced much bigger gains over the past month, including Colorado (95 cents), Georgia (68 cents), Delaware (63 cents), Florida (60 cents) and Ohio (59 cents). That helps explain why gas prices in Colorado have surged by nearly $1 a gallon over the past month. Oil prices bounce off lowsBeyond the refinery problems, oil prices have crept higher, helping to drive prices at the pump northward.

☆ Recessions risks knock stocks, speculators drawn back to yen
▼ + stars: | 2023-01-19 | by ( Tom Westbrook | ) www.reuters.com time to read: +3 min

The Nikkei dip and the bounce for the yen suggest such speculation is here to stay, at least for now. April was another possibility, she added, since by then the BOJ would have a new governor. "My guess would be that more speculators would look to build positions going into these meetings." Microsoft's announcement of 10,000 layoffs and hawkish comments from Cleveland Fed President Loretta Mester and St. Louis Fed President James Bullard added to the gloom, with both Fed officials expecting U.S. interest rates above 5% this year. The Australian dollar was last down 0.5% at $0.6907, losing ground after data showed an unexpected fall in Australian employment last month.

☆ Morning bid: No safety net?
▼ + stars: | 2023-01-19 | by ( ) www.reuters.com time to read: +4 min

"I just think we need to keep going," Cleveland Fed President Loretta Mester said. And many forecasters are now wary the Fed will err on the side of tighter policy to ensure inflation is slayed. Markets wobbled on the prospect on Wednesday, with the S&P500 (.SPX) staging its biggest decline of the year so far. At 3.32%, 10-year U.S. Treasury yields fell to their lowest since September. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Futures fall as weak data fuel recession worries, Fed comments on tap
▼ + stars: | 2023-01-19 | by ( ) www.reuters.com time to read: +2 min

SummarySummary Companies Futures down: Dow 0.52%, S&P 0.54%, Nasdaq 0.61%Jan 19 (Reuters) - U.S. stock index futures fell on Thursday after weak economic data fueled recession worries, while investors await comments from more Federal Reserve officials for clues on the central bank's path of monetary tightening. "For once bad news really was bad news because of the implications it might have for interest rates. Weak retail sales suggested consumers' resilience may have been pushed beyond breaking point," said Russ Mould, investment director at AJ Bell. Analysts now expect year-over-year earnings from S&P 500 companies to decline 2.6% for the quarter, according to Refinitiv data, compared with a 1.6% decline in the beginning of the year. ET, Dow e-minis were down 173 points, or 0.52%, S&P 500 e-minis were down 21.25 points, or 0.54%, and Nasdaq 100 e-minis were down 69.5 points, or 0.61%.

☆ Asia-Pacific stocks fall tracking losses on Wall Street
▼ + stars: | 2023-01-19 | by ( Lee Ying Shan | ) www.cnbc.com time to read: +1 min

Cleveland Federal Reserve President Loretta Mester said Wednesday that interest rates have to keep moving higher even with recent inflation readings softening. In an interview with the Associated Press, the policymaker said the Fed likely will have to take its benchmark interest rate above 5% in order to get inflation moving consistently down to the central bank's 2% goal. She noted that markets and the economy absorbed the half-point December rate hike without a problem. "I just think we need to keep going, and we'll discuss at the [Jan. 31-Feb. 1] meeting how much to do at any one particular meeting," Mester said. The fed funds rate is currently targeted in a range between 4.25%-4.5%.

Before the market opened, U.S. economic data showed retail sales and producer prices declined more than expected in December, while production at U.S. factories fell more than expected and November output was weaker than thought. The Dow Jones Industrial Average (.DJI) fell 613.89 points, or 1.81%, to 33,296.96 and the S&P 500 (.SPX) lost 62.11 points, or 1.56%, to 3,928.86. Today's economic data served as a trigger to initiate a profit taking spell and the groups with most profits to take have been the ones that have done best last year," said Stovall. Earlier in the day, St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester stressed on the need to raise rates beyond 5% to bring inflation to heel. The S&P 500 posted nine new 52-week highs and 2 new lows; the Nasdaq Composite recorded 78 new highs and 20 new lows.

☆ U.S. dollar advances vs major currencies as risk appetite fades
▼ + stars: | 2023-01-18 | by ( Gertrude Chavez-Dreyfuss | ) www.reuters.com time to read: +5 min

The earlier sell-off in the dollar came after the Bank of Japan maintained ultra-low interest rates. In afternoon trading, the U.S. currency rose against the commodity-linked currencies such as the Australian, New Zealand, and Canadian dollars, which sensitive to risk appetite. The Australian dollar fell 0.7% to US$0.6936, after hitting its highest since August last year. In Japan, the BOJ kept intact its yield curve control (YCC) targets, set at -0.1% for short-term interest rates and around 0% for the 10-year yield, by a unanimous vote. The dollar rose as much as 2.7% to 131.58 yen before gains were pared.

Brent <LCOc1> futures fell 94 cents, or 1.1%, to settle at $84.98 a barrel. U.S. West Texas Intermediate (WTI) crude fell 70 cents, or 0.9%, to settle at 79.48. Markets at first reacted positively to U.S. data, which showed retail sales and manufacturing production declined more than forecast in December, on hopes the Fed would now ease up on interest rate hikes. Supporting oil prices early in the session, China reported economic data that beat forecasts after the country started rolling back its zero-COVID policy in early December. Rystad said the losses were at about 500,000 barrels per day and that India and China remain key buyers of Russian crude.

Markets reacted positively to data, which showed retail sales and producer prices declined more than expected in December. However, the gains were short-lived as St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester stressed on the need to raise rates beyond 5% to bring inflation to heel. U.S. stock markets have started 2023 on a strong footing on hopes that a moderation in inflationary pressures could give the Fed cover to dial down the size of its interest rate hikes. Declining issues outnumbered advancers for a 1.23-to-1 ratio on the NYSE and a 1.53-to-1 ratio on the Nasdaq. The S&P index recorded nine new 52-week highs and two new lows, while the Nasdaq recorded 63 new highs and 12 new lows.

☆ Fed's Mester says rates need to rise "a little bit" above 5%
▼ + stars: | 2023-01-18 | by ( Reuters Staff | ) www.reuters.com time to read: +1 min

A U.S. Dollar note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration(Reuters) - The Federal Reserve needs to raise interest rates a “little bit” above the 5.00% to 5.25% range in order to bring inflation to heel, Cleveland Fed President Loretta Mester said on Wednesday, as she declined to disclose her preferred size of move at the upcoming policy meeting. “We’re not at 5% yet, we’re not above 5%, which I think is going to be needed given where my projections are for the economy,” Mester said in an interview with the Associated Press. “We’re beginning to see the kind of actions that we need to see,” Mester added. “Good signs that things are moving in the right direction ... That’s important input into how we’re thinking about where policy needs to go.”Fed Chair Jerome Powell tested positive for COVID-19 on Wednesday and is experiencing mild symptoms, the central bank said in a statement on Wednesday.

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