Markets are kicking around the idea of a Federal Reserve rate cut in September, but Morgan Stanley isn't sure, warning that the odds may be closer to 50-50 despite widespread expectations. Strong economic indicators including solid GDP growth, healthy financial conditions, and low volatility stand in the way of a clear case for easing, the bank said in a recent report. Nominal GDP growth remains robust at over 5%, unemployment holds steady at 4.2%, and retail sales continue surpassing expectations, reflecting an economy far from needing stimulus, Morgan Stanley's economists said. "It cannot...
Oil prices rose on Wednesday on a larger-than-expected drop in U.S. crude inventories and the potential impact of new U.S. tariffs on India. Brent crude futures were up 55 cents, or 0.8%, at $67.77 a barrel by 12:10 p.m. ET (1710 GMT). West Texas Intermediate crude futures gained 62 cents, or 1%, to $63.86. Both contracts fell by more than 2% on Tuesday. U.S. crude inventories dropped by 2.4 million barrels to 418.3 million barrels last week, the Energy Information Administration said, compared with analysts' expectations in a Reuters poll for a 1.9-million-barrel draw. U.S. gasoline...
Gold edged lower on Wednesday morning as the dollar strengthened, even amid concerns over US President Donald Trump's move to take over control of the Federal Reserve Board, which continues to encourage safe-haven asset purchases. December gold last traded down US$4.00 at US$3,429.00, down from its highest level since August 8. Trump said on Monday he would fire Federal Reserve Chair Lisa Cook, as he continues to pressure the central bank to lower interest rates despite rising inflation. Cook was appointed to the Fed Board by Joe Biden and is the first African-American woman to hold the...
Oil prices rose slightly on Wednesday morning after the United States imposed high secondary tariffs on India to curb Russian oil imports, despite a report showing a smaller-than-expected decline in U.S. crude inventories last week. West Texas Intermediate crude for October delivery last week rose US$0.24 to US$64.49 per barrel, while Brent crude for October rose US$0.20 to US$67.42. The Trump administration followed through on its threat to impose a 50% tariff on most U.S. imports from India to curb Russian oil imports. The tariffs took effect just after midnight on Wednesday, doubling...
Gold prices weakened on Wednesday (August 27th) as the dollar strengthened and some investors booked profits from the more than two-week peak reached in the previous session. Spot gold prices fell 0.3% to $3,382.31 per ounce, as of 08:11 GMT. US gold futures for December delivery fell 0.1% to $3,430.80. The dollar index rose about 0.4% against a basket of currencies, making dollar-priced bullion more expensive for holders of other currencies. "(Gold) prices move faster than an arrow, with the direction of movement determined by the dollar. The current weakness in gold prices is likely due...
The dollar strengthened against the euro and the pound sterling on Wednesday (August 27), but investor concerns over the Fed's independence persisted, potentially limiting the US currency's gains. The euro weakened about 0.4% to $1.1593 and the pound weakened 0.3% to $1.3441, giving back some of the gains sparked by Trump's announcement on Monday that he would fire Fed Chair Lisa Cook over alleged irregularities in obtaining mortgage loans. Cook's lawyer later said he would file a lawsuit to prevent her dismissal, potentially triggering a protracted legal battle. Trump's unprecedented...
President Donald Trump said he would fire Lisa Cook from the Federal Reserve's Board of Governors if she does not resign her post over mortgage-fraud accusations from a top...
The Reserve Bank of Australia (RBA) maintained its cash rate at 4.1% during its April meeting, holding borrowing costs unchanged after slashing 25 bps in the February meeting, aligning with market...