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ECB pushes out rate hike, offers cheap cash to banks

FRANKFURT (Reuters) – The European Central Bank changed tack on its tightening plan on Thursday, pushing out the timing of its first post-crisis rate hike until 2020 at the earliest and offering banks a new round of cheap loans to help revive the euro zone eco... More »

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ECB statement following policy meeting

FRANKFURT (Reuters) – Following is the text of European Central Bank President Mario Draghi’s statement after the ECB’s policy meeting on Thursday: Based on our regular economic and monetary analyses, we have conducted a thorough assessment of the economic and... More »

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BlackRock makes case to own more U.S. TIPS

NEW YORK (Reuters) – BlackRock, the world’s biggest asset manager, on Monday recommended investors hold more U.S. Treasury Inflation Protected Securities (TIPS) as the Federal Reserve is expected to refrain from raising short-term interest rates in the coming ... More »

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Slowdown to showdown: Five questions for the ECB

LONDON (Reuters) – Two months after ending its massive stimulus scheme, the European Central Bank faces growing pressure to address how it will protect the euro zone economy from a protracted slowdown. Thursday’s policy meeting, news conference, and updated ec... More »

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A day of reckoning for the ECB?

FRANKFURT (Reuters) – The European Central Bank has downplayed a global slowdown for months, but it will finally take a tentative step next week to prop up the euro zone economy, signaling fresh stimulus to keep banks lending. With a global trade war already b... More »

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Latvia violated EU law in removing ECB policymaker, court rules

LUXEMBOURG (Reuters) – Latvia violated European Union law by barring from office its central bank governor, who is also a European Central Bank policymaker, the European Court of Justice ruled on Tuesday in a widely expected decision. Ilmars Rimsevics was susp... More »

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Banks losing battle to be no-deal Brexit ready

LONDON (Reuters) – Major banks are still not ready for a ‘no-deal’ Brexit as they grapple with delays in licences for new European Union businesses, staffing problems and snags in redrafting contracts. Despite thousands of staff working on preparations for mor... More »

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Fed’s Powell heads to Congress amid shifting landscape

WASHINGTON (Reuters) – Federal Reserve Chairman Jerome Powell worked hard to strengthen ties with Congress during his first year as head of the U.S. central bank, doubling the pace of meetings with lawmakers over his predecessors and courting Democrats and Rep... More »

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Key ECB supervision role to go unfilled in board-room impasse

FRANKFURT (Reuters) – A key euro zone banking supervision role is set to go unfilled for an indefinite time after ECB chief Mario Draghi failed to pick a successor in an unprecedented impasse at the crucial euro zone institution, sources familiar with the matt... More »

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Investors pump record amounts of cash in emerging markets: BAML

LONDON (Reuters) – Investors pumped record high volumes of cash into emerging markets shares and bonds in the past week, Bank of America Merrill Lynch (BAML) said on Friday amid expectations U.S. monetary policy could lead to a weaker U.S. dollar. Flows into b... More »

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Small-cap stocks shrug off debt concerns, for the moment

NEW YORK (Reuters) – Small-cap stocks were among the biggest losers during the stock market’s rout late last year as investors worried about high leverage, but they have outperformed in 2019’s rebounding market, with shares of debt-laden companies leading the ... More »

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Trade deal optimism lifts European shares as exporters rally

MILAN (Reuters) – European shares rose on Wednesday driven by the export-oriented autos and tech sectors as optimism grew that the United States and China could avoid a full-blown trade war that would further brake a slowing global economy. The pan-European ST... More »

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Oil prices rebound but still weak due to oversupply

LONDON (Reuters) – Oil prices rebounded on Friday, recovering slightly from heavy losses this week, but remained close to the lowest levels in over a year as rising U.S. inventories and concern over global economic growth rattled markets. Brent crude oil LCOc1... More »

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King dollar’s reign faces challenges in 2019

LONDON/NEW YORK (Reuters) – After an unexpected rally that carried the dollar to 18-month peaks and saw it end 2018 as investors’ top trade, the currency faces challenges in the coming year. They include an expensive valuation, a flagging equity boom, waning c... More »

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Nasdaq in bear market, first of the three major U.S. indexes

NEW YORK (Reuters) – The Nasdaq Composite Index .IXIC confirmed on Friday it is in a bear market for the first time since 2008, underscoring fears that the longest bull run in history for U.S. stocks could soon be over. The index finished the day down 21.9 per... More »

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Fed Chairman Powell’s testimony to Congress postponed

WASHINGTON (Reuters) – Federal Reserve Chairman Jerome Powell’s testimony to Congress’s Joint Economic Committee on Wednesday has been postponed and will be rescheduled at a later date, the committee said Monday. Powell was slated to discuss the economic outlo... More »

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BlackRock’s Rieder halved fund’s emerging market exposure

NEW YORK (Reuters) – Top BlackRock Inc (BLK.N) bond investor Rick Rieder halved exposure in recent months to a once-major bet in his portfolios on emerging markets on concerns including that the dollar could move higher, he told Reuters on Friday. “I still wou... More »

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China eyes more vigorous fiscal policy short of strong stimulus

BEIJING (Reuters) – China will adopt a more vigorous fiscal policy to help tackle external uncertainties without resorting to strong policy stimulus, state radio said on Monday, citing the cabinet. Slowing economic growth has sparked a heated debate among gove... More »

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Japanese yen trims early gains as BOJ policy change eyed

LONDON (Reuters) – The yen trimmed early gains on Monday as traders consolidated positions after reports the central bank was debating moves to scale back its massive monetary stimulus ignited a brief rally in the Japanese currency. With investors wary of buyi... More »

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Dollar rises as trade war fears fade, risk sentiment returns

LONDON (Reuters) – The dollar strengthened broadly on Monday and neared a six-month high against the Japanese yen as investors bought riskier assets, encouraged by signs that trade tensions have yet to hurt economic momentum. As the second-quarter corporate ea... More »

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U.S. job growth strong- unemployment rate rises to 4 percent

WASHINGTON (Reuters) – U.S. job growth increased more than expected in June as manufacturers stepped up hiring, but steady wage gains pointed to moderate inflation pressures that should keep the Federal Reserve on a path of gradual interest rate increases. Non... More »

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Investors seek cover as trade battles rattle world markets

LONDON (Reuters) – Investors have sharply increased their use of hedging strategies, signaling concerns that the intensifying trade battle between the United States and China might hit economies from Germany to South Korea. Money managers say that mounting bar... More »

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Bank of England holds special vote: to decide World Cup winner

LONDON (Reuters) – Britain’s top central bankers held an unusual vote during their policy deliberations this week – to decide which country is most likely to win the World Cup taking place in Russia. Switzerland – which achieved an unexpected draw against five... More »

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Germany’s Merkel, ECB’s Draghi exchange views

BERLIN (Reuters) – German Chancellor Angela Merkel exchanged views with European Central Bank President Mario Draghi on Monday, her spokesman said, as part of her regular informal meetings with leaders of European institutions. Merkel’s spokesman, Steffen Seib... More »

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Global trade skirmish puts factories, recovery at risk

LONDON/BEIJING (Reuters) – Factory growth in major manufacturing hubs showed signs of cooling last month as companies braced for potential damage from rising global trade tensions while also grappling with accelerating inflation and a strong dollar. U.S. Presi... More »

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Summer of discontent? Events in June that could shake markets

LONDON (Reuters) – May was a manic month for markets but brace yourself for June. An unprecedented summit between North Korea and the United States is back on the agenda, and there are other events on the radar to potentially convulse world markets — from Turk... More »

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Kenya moves to regulate fintech-fuelled lending craze

(This May 25 story corrects first name of Capital Markets Authority CEO to Paul, not Peter, paragraph 29) By Maggie Fick and Omar Mohammed NAIROBI (Reuters) – Kenya built a reputation as a pioneer of financial inclusion through its early adoption of a mobile m... More »

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U.S.-China trade war relief sends dollar to five-month highs

LONDON (Reuters) – The dollar hit a five-month high on Monday after U.S. Treasury Secretary Steven Mnuchin declared the U.S.-China trade war “on hold” following their agreement to suspend threatened tariffs. Against a basket of its peers, the dollar rose above... More »

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Why Italy’s bonds keep calm and carry on

LONDON (Reuters) – The prospect of a more spendthrift government in Italy, already one of the euro zone’s most indebted economies, has had only a mild impact on Italian government bonds — leaving many market pundits puzzled. Even after news in the past 24 hour... More »

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Some U.S. fund managers finally convinced oil rally is for real

NEW YORK (Reuters) – U.S. fund managers are barreling into the energy sector by making broad bets on anything connected with oil, finally convinced that gains in crude prices – on track for their fourth consecutive quarterly gain, the longest such stretch for ... More »

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Dollar surge bringing emerging market rate cut cycle to a halt

LONDON (Reuters) – A resurgent dollar and higher borrowing costs are smashing through Argentina and Turkey’s currencies like a wrecking ball and raising the likelihood more broadly that emerging markets’ three-year long interest rate cutting cycle is at an end... More »

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Argentina curbs peso’s fall though risks linger

BUENOS AIRES (Reuters) – Argentina likely stopped a run on the peso with a massive rate hike and lower fiscal deficit target on Friday, though high inflation and large amounts of debt are lingering risks, economists said. Treasury Minister Nicolas Dujovne told... More »

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Take Five: World markets themes for the week ahead

LONDON (Reuters) – Following are five big themes likely to dominate the thinking of investors and traders in the coming week and the Reuters stories related to them. WHAT’S THE PRICE 1/The Federal Reserve has acknowledged U.S. inflation has perked up, adding t... More »

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Dollar down from 4-month highs ahead of U.S. jobs data

SINGAPORE (Reuters) – The dollar held steady against a basket of currencies on Friday, having retreated from four-month highs on profit-taking, with the focus on whether U.S. jobs data will provide the spark for another push higher. The dollar has erased all i... More »

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Corporate Europe senses relief as euro falls from peak

(This version of the May 3 story was refiled to removes extraneous words in Credit Suisse title in paragraph 11) By Danilo Masoni MILAN (Reuters) – The recent recovery in the dollar has raised hopes that currency turbulence for European corporates will now sub... More »

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U.S. jobs growth expected to regain momentum in April

WASHINGTON (Reuters) – U.S. job growth likely accelerated in April after a weather-related slowdown in the previous month, with the unemployment rate expected to drop to near a 17-1/2-year low of 4.0 percent. The Labor Department’s closely watched employment r... More »

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Last man standing: lonely Fed tightening spurs dollar surge

LONDON (Reuters) – As speculation about interest rate rises and policy ‘normalization’ in the euro zone, Japan, Britain and China falls away rapidly, the U.S. Federal Reserve’s now lonely monetary tightening has suddenly supercharged the dollar. The revival of... More »

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World stocks set for positive April as big ticket M&As return

SYDNEY (Reuters) – World stocks are set to notch up a positive month for the first time since January, as a slew of positive earnings from U.S. technology firms and marquee M&A deals help soothe memories of February tremors. A seemingly successful Korean summi... More »

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Euro zone lending picks up, money supply growth slows in March

FRANKFURT (Reuters) – Lending to euro zone households and companies accelerated in March while a broader indicator of money circulating in the currency bloc, which often foreshadows future activity, slowed sharply, data from the European Central Bank showed on... More »

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Fed faces new challenge: A world without labor ‘slack’

WASHINGTON (Reuters) – Business is coming in so fast and workers are in such high demand at AOW Associates Inc, an Albany, New York-based construction firm, that its chief financial officer hired a guy six weeks ago for a job that didn’t exist. “We keep our pr... More »

Asian stocks rise after U.S. tech shares bounce

SINGAPORE (Reuters) – Asian shares rose on Friday after U.S. equities were buoyed by a rebound in technology stocks, while markets in Seoul were underpinned by optimism as leaders of North and South Korea held their first summit in over a decade. MSCI’s broade... More »

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Euro zone business growth stabilizes but euro a rising concern

LONDON (Reuters) – Business activity across the euro zone was still growing as the second quarter began, but at a more modest rate than around the turn of the year, a survey showed on Monday. The euro zone unexpectedly was one of the best-performing major econ... More »

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Oil dips as rising U.S. yields steer bulls

LONDON (Reuters) – Oil eased on Monday on rising U.S. borrowing costs and the prospect of further output rises after another increase in the weekly rig count, although the overall picture for crude remained bullish. Brent crude futures were down 49 cents at $7... More »

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Dollar heads towards 2-week lows as short bets hit 7-year highs

LONDON (Reuters) – The dollar weakened on Monday and headed towards a two-week low against a basket of rivals on growing signs of relief that a U.S.-led strike on Syria would not escalate further at a time when concerns over a trade war has rattled global mark... More »

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Republican tax cuts to fuel historic U.S. deficits: CBO

WASHINGTON (Reuters) – The massive tax cuts signed into law in December, which Republicans said would pay for themselves, will balloon the U.S. deficit in years ahead, the Congressional Budget Office said on Monday, possibly hobbling President Donald Trump’s f... More »

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Euro zone inflation disconnected from growth: ECB’s Praet

FRANKFURT (Reuters) – Euro zone inflation appears to have disconnected from growth and remains subdued even as the currency bloc’s economy expands rapidly, European Central Bank chief economist Peter Praet said. “However, the ongoing economic expansion is expe... More »

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ECB gives up on bigger bond buys en route to stimulus exit

European Central Bank (ECB) President Mario Draghi holds a news conference at the ECB headquarters in Frankfurt, Germany, March 7, 2018. REUTERS/Ralph Orlowski FRANKFURT (Reuters) – The European Central Bank dropped a long-standing pledge on Thursday to increa... More »

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Draghi comments at ECB press conference

European Central Bank (ECB) President Mario Draghi and Vice President Vitor Constancio arrive for a news conference at the ECB headquarters in Frankfurt, Germany, March 7, 2018. REUTERS/Ralph Orlowski FRANKFURT, (Reuters) – The European Central Bank dropped a ... More »

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China keeps growth target at 6.5 percent, stays focused on…

Chinese Premier Li Keqiang claps hands as he delivers his speech during the opening session of the National People’s Congress (NPC) at the Great Hall of the People in Beijing, China March 5, 2018. REUTERS/Damir Sagolj BEIJING (Reuters) – China aims to expand i... More »

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Markets clear German hurdle, Italy up next

Traders work at Frankfurt’s stock exchange in Frankfurt, Germany, February 6, 2018. Picture taken with a fisheye lens. REUTERS/Ralph Orlowski LONDON (Reuters) – The revival of Germany’s grand coalition should aid stability and keep the euro zone’s plans for ti... More »

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Gold as an inflation hedge? Well, sort of…

FILE PHOTO: Gold bars at the Austrian Gold and Silver Separating Plant ‘Oegussa’ in Vienna, Austria, March 18, 2016. REUTERS/Leonhard Foeger/File Photo LONDON (Reuters) – Rising inflation has put gold back on the radar for investors looking to protect themselv... More »

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Earnings boost for stocks may lose luster with rising yields

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., March 1, 2018. REUTERS/Lucas Jackson NEW YORK (Reuters) – There is little doubt on Wall Street that U.S. corporate profits are on track to rise at a heal... More »

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Industry needs consensus on new reference rate: ECB’s Coeure

FILE PHOTO: Benoit Coeure, board member of the European Central Bank (ECB), is photographed during an interview with Reuters journalists at the ECB headquarters in Frankfurt, Germany, May 17, 2017. REUTERS/Kai Pfaffenbach/File Photo FRANKFURT (Reuters) – Europ... More »

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ECB stops all ABLV Bank payments amid U.S. corruption probe

A security guard speaks on her mobile phone at the head office of the ABLV Bank in Riga, Latvia February 18, 2018. REUTERS/Ints Kalnins FRANKFURT (Reuters) – The European Central Bank stopped all payments by Latvian lender ABLV Bank on Monday as its liquidity ... More »