Author: FX
The Dow Jones rebounded over 350 points on Friday, climbing back above 46,000.Fed rate cut expectations are still on track after PCE inflation met market forecasts.Despite a coolish print, inflation continues to hold on the wrong side of the Fed’s 2% annual target.The Dow Jones Industrial Average (DJIA) rebounded on Friday, paring away the midweek’s losses and recovering footing as investors self-soothe over odds of a follow-up interest rate cut in October. US Personal Consumption Expenditures Price Index (PCE) inflation came in about where median market forecasts predicted, keeping market hopes for an October rate trim on the high side.Inflation…
STAAR Surgical Company (NASDAQ:STAA) said in a presentation today that its $28.00 per share all-cash merger with Alcon provides its stockholders compelling, certain, cash value at a significant premium across multiple measures. It represents a 51% premium to STAAR’s closing stock Source link
Gold surges as dovish bets grow despite fragile labor market and mixed consumer sentiment signals.Core PCE inflation stays under 3%, fueling speculation that Fed will extend easing into year-end meetings.Traders eye upcoming US data releases, including NFPs and ISM PMI, for confirmation of Fed’s policy trajectory.Gold price advances during the North American session, up 0.60% on Friday after the last inflation report maintained the status quo, reinforcing dovish bets for further easing by the Federal Reserve (Fed). At the time of writing, the XAU/USD trades at $3,774 after bouncing off daily lows of $3,734.Precious metal rises after PCE data bolsters…
Federal Reserve (Fed) Board of Governors member Michelle Bowman pivoted deeper into the pro-rate-cut camp on Friday, noting that recent payroll revisions shows the Fed is even further behind the curve on interest rate cuts than previously estimated.Despite inflation metrics riding well above the Fed’s 2% target, Bowman noted that a steep slowing in US population growth, coupled with an uptick in the aging average of the populace will act as structural drags on the neutral rate, pushing the Fed even further out from neutral over time.Bowman did caution that the Fed must be able to act without political interference.Key…
Lithium Americas Corp ($LAC) has been one of the hottest stocks in the world this week, gaining as much as 250% from Friday’s close to today’s peak but it’s slumped since the open, in part because an analyst at Scotiabank poured cold water on the investment thesis.The saga started Tuesday on a report from Reuters saying that Trump’s administration was seeking a 10% stake in the company as part of a $2.26 billion loan in order to build its Thacker Pass lithium project in Nevada. General Motors also has a stake in the project, which would be one of the…
Fed’s Bowman – who voted for a 25 basis point cut at the most recent meeting – is out saying it is now time for the Fed to act decisively (and more): Recent data show a materially more fragile labor market, inflation ex-tariffs hovering not far above targetTime for FOMC to act decisively and proactively to address decreasing labor market dynamism, emerging signs of fragilityRecent data, including benchmark payroll revisions, show we are at serious risk of already being behind the curveShould these conditions continue, concerned we will need to adjust policy at faster pace and to a larger degree…
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Major European indices had a solid day led by Spain’s Ibex which rose by 1.3%. Other major indices were up by 0.77% or more: German DAX, +0.87%France’s CAC +0.97%UK’s FTSE 100 +0.77%Spain’s Ibex +1.3%Italy’s FTSE MIB +0.96%US stocks have pushed into positive territory with the NASDAQ index leading with a gain of 0.06%: Dow industrial average +0.59%S&P index +0.34%NASDAQ index +0.06%At session lows, the NASDAQ index successfully tested its 100 hour moving average giving the buyers some hope from a technical perspective (see post here).A look around other markets shows:Crude oil is up $0.93 at $65.90.Gold is up $26.50 or…
USD/JPY retreats after a two-day rally that pushed it to its highest level in eight weeks.US core PCE inflation rose 0.2% MoM in August, in line with forecasts.The US Dollar Index eases from three-week highs as traders react to US PCE and tariff headlines.The Japanese Yen (JPY) firms against the US Dollar (USD) on Friday, with USD/JPY taking a breather after a sharp two-day rally that had propelled it to its strongest level since August 1 on Thursday. At the time of writing, the USD/JPY pair is trading around 149.50, as the Greenback’s recent rally loses momentum. The US Dollar…
In an op-ed published in The Times, Bank of England (BoE) policymaker Swati Dhingra argued that shocks driving the UK’s high inflation will fade and that they should not be overly cautious about cutting interest rates.Dhingra further added that the UK is not suffering from more food inflation than it’s peers and noted that earnings play a smaller role in the services’ Consumer Price Index (CPI).Market reactionThese comments received a dovish score of 2.0 from FXStreet BoE Speech Tracker. Nevertheless, GBP/USD clings to daily recovery gains near 1.3400 in the Americn session. Source link