Renewed tensions between the United States and Russia have resurfaced following an incident involving an oil tanker, sparking market concerns about potential disruptions to global energy supplies. Washington's move, associated with tightening oversight and enforcement of sanctions on Russian oil shipments, is viewed by Moscow as provocative and could worsen relations between the two countries. Russia views these actions as an attempt by the United States to suppress Russian energy exports and strengthen its dominance in the global oil market. Meanwhile, Washington argues that these measures...
The Bank of England left the benchmark bank rate steady at 4.75% during its December 2024 meeting, in line with market expectations, as CPI inflation, wage growth and some indicators of inflation expectations had risen, adding to the risk of inflation persistence. However, three policymakers preferred to reduce the bank rate by 25bps to 4.5% on the back of sluggish demand and a weakening labour market. The central bank reinforced that a gradual approach to removing monetary policy restraint remains appropriate and that monetary policy will need to continue to remain restrictive for...
EUR/USD surged closer to 1.0400 during the European session on Thursday as the US Dollar (USD) strength took a breather after Wednesday's sharp rally. The US Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, held gains near a fresh two-year high above 108.00. The greenback drew significant bids after the Federal Reserve (Fed) cut its key lending rate by 25 basis points (bps) to 4.25%-4.50% on Wednesday, as expected, but signaled fewer rate cuts for next year. In the latest dot chart, the Fed revised its projection for the number of interest rate cuts...
The United Kingdom (UK) Consumer Price Index (CPI) edged higher by 2.6% on a yearly basis in November after recording a 2.3% growth in October, according to the data released by the Office for National Statistics (ONS) on Wednesday. Data aligned with the market forecast of 2.6% and stayed well above the Bank of England's (BoE) 2.0% target. Core CPI (excluding volatile food and energy items) rose by 3.5% YoY in November, compared to a 3.3% increase in October while missing the market consensus of 3.6%. The UK November Services CPI inflation stayed unchanged at 5.0% YoY in November.The UK...
Retail sales rose faster than expected at the start of the holiday shopping season in November, pointing to steady growth in the U.S. economy. Sales at U.S. retailers rose 0.7% last month, the government said Tuesday. Retail sales account for about a third of all consumer spending and provide clues to the strength of the economy. What they do show is that the U.S. is ending 2024 on a strong note. Economists surveyed by the Wall Street Journal had forecast a 0.5% gain last month. Key details: Sales of new cars and trucks jumped 2.6% in November to lead the retail gain. Auto sales account...
Inflation in the US, as measured by the change in the Consumer Price Index (CPI), rose to 2.7% on a yearly basis in November from 2.6% in October, the US Bureau of Labor Statistics (BLS) reported on Wednesday. This reading came in line with the market expectation. On a monthly basis, the CPI rose 0.3% following the 0.2% increase recorded in October. The core CPI, which excludes volatile food and energy prices, rose 3.3% on a yearly basis to match October's increase and analysts' estimate. The monthly core CPI rose 0.3% in November. Market reaction to US inflation data These figures don't...
Asian stock markets fell in unison on Thursday, following Wall Street's decline. A brief rally in tech stocks led by Nvidia quickly faded, prompting investors to turn away from riskier assets like...
European stock indices closed marginally lower on Wednesday as equities took a breather from their recent strong momentum, while investors continued to assess the outlook for the ECB's policy this...
The upcoming Supreme Court ruling on the legality of President Donald Trump's massive tariffs, which rocked markets in April, is one of the next major tests for US stocks and bonds.
Equity markets...