BoE set to keep full-speed stimulus despite split over inflation risk

2021-07-28 14:35:36

LONDON: The Bank of England looks set to keep its stimulus running at full speed next week despite two policymakers breaking ranks to suggest that its nearly 900 billion pound ($1.2 trillion) bond-buying scheme might have to end early as inflation speeds up.

Britain’s economy is rebounding quickly from its almost 10 per cent crash of 2020, when the country suffered a higher COVID-19 death toll and longer lockdowns than most other nations.

With consumers back in shops,

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Gold pinned near key $1,800 level ahead of Fed policy decision

2021-07-28 08:35:36

Gold prices were flat on Wednesday, holding near the key psychological level of $1,800 per ounce, as investors await the U.S. Federal Reserve‘s meeting for hints on policy tapering plans.

Spot gold was flat at $1,798.75 per ounce by 0106 GMT.

U.S. gold futures fell 0.1% to $1,798.20 per ounce.

Fed’s policy statement is due at 1800 GMT later in the day followed by a news conference by Chairman Jerome Powell. Investors will look for cues on

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Gold dips as yields perk up, dollar strengthens

2021-07-24 10:24:21

Gold fell and was heading for a weekly dip on Friday as a stronger dollar, firmer yields and equity markets chipped away at its appeal.

Spot gold fell 0.3% to $1,800.72 per ounce by 1:43 pm EDT (1743 GMT). U.S. gold futures settled 0.2% lower at $1,801.80.

Bullion has shed 0.7% this week after briefly moving toward last week’s one-month peak, as fears over rising Delta variant COVID-19 cases have eased, prompting investors to move out of the

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Global supply chains buckle as virus variant and disasters strike

A new worldwide wave of COVID-19. Natural disasters in China and Germany. A cyber attack targeting key South African ports.

Events have conspired to drive global supply chains towards breaking point, threatening the fragile flow of raw materials, parts and consumer goods, according to companies, economists and shipping specialists.

The Delta variant of the coronavirus has devastated parts of Asia and prompted many nations to cut off land access for sailors. That’s left captains unable to rotate weary crews and

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Gold rate: Yellow metal marginally lower, silver flat

2021-07-23 10:28:52

NEW DELHI: Gold edged lower on Friday as investors fancied riskier assets and a stronger dollar made the bullion more expensive. However, the decline in precious metals was limited on the .

Gold futures on MCX were down 0.15 per cent or Rs 71 at Rs 47,563 per 10 grams. Silver futures were flat, just 0.03 per cent or Rs 17 lower at 67,574 per kg.

Ravindra Rao,CMT, EPAT, VP- Head Commodity Research at Kotak Securities, said

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Embedded as a risk, new Covid cycle could challenge Fed, recovery

2021-07-23 00:08:30

WASHINGTON, – Five weeks after dropping its reference to the coronavirus as a weight on the economy, the U.S. Federal Reserve is confronting a challenging new rise in cases that has fueled doubts about the global recovery and is already forcing other central banks to consider retooling their policies.

The daily pace of new infections has more than doubled since the Fed‘s June 16 policy meeting, when Chair Jerome Powell said that while it was “premature to

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Embedded as a risk, new COVID cycle could challenge Fed, recovery

Five weeks after dropping its reference to the coronavirus as a weight on the economy, the U.S. Federal Reserve is confronting a challenging new rise in cases that has fueled doubts about the global recovery and is already forcing other central banks to consider retooling their policies.

The daily pace of new infections has more than doubled since the Fed’s June 16 policy meeting, when Chair Jerome Powell said that while it was “premature to declare victory” given the appearance

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Gold slips off one-month peak as U.S. dollar, yields rebound

2021-07-17 00:03:46

Gold dipped on Friday as a stronger dollar and rebounding yields dulled its appeal and pushed the metal off one-month highs reached in the last session on dovish remarks from the head of the U.S. Federal Reserve.

Spot gold fell 0.6 per cent to $1,817.40 per ounce by 10:18 a.m. EDT, though it was up 0.5 per cent so far this week. U.S. gold futures fell 0.3 per cent to $1,824.20.

Benchmark U.S. 10-year Treasury yields edged

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What if transitory is not so transitory after all?

2021-07-16 16:12:07

The U.S. Federal Reserve is sticking with the mantra that inflation is transitory and there’s no rush to tighten policy but some others are feeling uneasy.

On Thursday, Michael Saunders became the second Bank of England rate setter in two days to signal it may be time to consider reining in stimulus as inflation ramps up. Earlier this week central banks in Canada and New Zealand took steps towards unwinding post-crisis stimulus.

No surprise then that two-year gilt

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Australia shares end lower as lockdown fears loom over Melbourne

2021-07-15 14:21:02

Australian shares closed lower on Thursday, with buy-now, pay-later and bank shares leading losses, as likelihood of country’s second-most populous city entering fresh coronavirus lockdown weighed on sentiment.

The S&P/ASX 200 index fell 0.26% to end at 7,335.9, with only heavyweight gold and iron ore miners in the black.

Local media reported that Melbourne would follow Sydney into a lockdown, as the outbreak of the highly contagious Delta variant threatens to take hold in the Victorian capital.

“Melbourne

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View: The crypto revolution will not be public

2021-07-14 09:03:37

By Tyler Cowen


A revolution is pending in finance, and the world is only beginning to realize the transformations it is likely to bring. Financial institutions will have to take a radically different approach to information technology just to stay in business.

Bullish Global, a crypto firm, is planning to go public this year, with an expected valuation of $9 billion. Circle Internet Financial Inc., the company behind stablecoin, is also planning to be publicly listed, as

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Gold logs best week in 7 as Delta variant risks loom

2021-07-10 10:14:59

Gold rose on Friday, heading for its best week in seven, bolstered by a weaker dollar and concerns that the spread of the Delta variant of the coronavirus could slow a global economic recovery.

Spot gold rose 0.5% to $1,810.99 per ounce by 2:44 p.m. (1844 GMT), and was up 1.4% for the week. US gold futures settled 0.6% higher at $1,810.6.

“We do continue to have issues with the Delta variant. That may very well slow economic

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Five reasons the ECB didn’t follow the Fed on inflation

2021-07-09 22:08:20

FRANKFURT: Setting out a policy strategy shift on Thursday, the European Central Bank left many questions unanswered but made one point abundantly clear: it would not follow its U.S. counterpart in targeting an average level of inflation.

The fact that it put distance between the two regimes in such a stark way reflects both the ECB‘s own struggles and the U.S. Federal Reserve‘s difficulty in communicating how average inflation-targeting actually works and impacts policy.

The

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Wall Street slides as bond market rallies on fears of recovery losing steam

2021-07-09 07:49:43

NEW YORK: Wall Street fell sharply on Thursday from the previous session’s record closing high, on a broad sell-off fueled by uncertainties surrounding the pace of the U.S. economic recovery.

As the bond market rallied on a flight to safety, all three major U.S. stock indexes turned sharply lower early but pared losses by late afternoon. The S&P 500 and the Nasdaq retreated from a series of all-time closing highs.

“We are now down to the levels of

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Post-Fed taper tantrum? Not this time, market strategists say

2021-07-08 16:09:27

Global markets won’t have a violent “taper-tantrum” like they did in 2013 even as though US Federal Reserve is expected to discuss tapering of asset purchases at its annual gathering at Jackson Hole in August, three strategists at asset management firms said.

The Fed‘s scaling back – or “tapering” – of its quantitative easing programme in 2013 had triggered a market panic when bond yields rocketed higher and stock prices dropped.

Inflation is likely to be “mostly

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Gold slips from 3-week peak as dollar firms ahead of Fed minutes

2021-07-07 08:02:18

Gold prices edged lower on Wednesday after hitting a three-week peak in the previous session, as a rebound in the dollar weighed on the safe-haven metal ahead of the release of minutes from the U.S. Federal Reserve‘s June policy meeting.

FUNDAMENTALS

* Spot gold was down 0.1% at $1,795.39 per ounce, as of 0103, after hitting its highest since June 17 at $1,814.78 on Tuesday.

* U.S. gold futures edged 0.1% higher to $1,795.80 per ounce.

*

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European shares slip as auto stocks offset oil boost

2021-07-06 14:25:27

European stocks slipped on Tuesday after three sessions of gains as gloomy trading in Asia and an unexpected drop in German industrial orders offset a jump in commodity stocks.

The pan-European STOXX 600 index fell 0.1 per cent, with the automobiles and parts index sliding the most. Worries about supply chain bottlenecks have weighed on the index since it hit 2015 highs in early June.

Data showed orders for German-made goods posted their sharpest slump in May since

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ASX 200 ends in red as tech stocks drag Australia shares lower, despite energy boost

2021-07-06 13:44:57

Australian shares closed lower on Tuesday weighed down by tech stocks and as the country’s central bank in a policy meeting decided to pare its bond buying programme.

The S&P/ASX 200 index reversed gains made in the morning trade to end 0.7 per cent lower at 7,261.8 points, it’s lowest in a week.

The Reserve Bank of Australia in its July policy meeting on Tuesday held the cash rate at 0.1 per cent, as widely expected, and highlighted

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Fed pivot, inflation boost emerging market interest rate hikes in June

2021-07-06 12:45:27

LONDON: Emerging markets saw more interest rate hikes in June as a hawkish pivot from the U.S. Federal Reserve amplified inflationary pressures in a number of developing economies.

Policymakers across a group of 37 emerging market central banks delivered a net five interest rate rises in June after a single increase in May.

A raft of major central banks raised rates in June and many flagged an accelerating pace of hikes in the months to come.

Brazil delivered

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Investors don’t see end to record-breaking equity rally just yet

2021-07-04 15:31:46

As stocks around the world continue to smash one record after another, some of the world’s biggest money managers have a simple message: Get used to it.

The likes of BlackRock Inc., State Street Global Markets, UBS Asset Management and JPMorgan Asset Management expect equity markets to keep rising in the second half of the year, with many investors increasingly looking outside the U.S. for more returns.

Globally, the asset class’s allure amid a continued economic rebound is

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