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  • Euro-Zone Spare Cash Already in Trillions Eyes Another Milestone

    Euro-Zone Spare Cash Already in Trillions Eyes Another Milestone

    (Bloomberg) -- The European Central Bank’s ultra-cheap liquidity injections next week may raise the amount of excess cash sloshing around the euro area above 3 trillion euros ($3.6 trillion) for the first time.The ECB on Thursday will disburse its latest round of loans with interest rates as low as minus 1%. While the take up may pale in comparison to June’s whopping 1.3-trillion-euro allotment -- given that the duration of the loan sweetener is three months shorter -- funding costs have fallen in anticipation of more liquidity.Three-month Euribor-- the rate that banks can theoretically borrow from each other -- fell to a record low of minus 0.504% Friday. Estimates for borrowings at the so-called Targeted Long-Term Refinancing Operations, or TLTROs, range from 10 billion euros at Barclays Plc to 200 billion euros at NatWest Markets Plc.Earlier in the week, the focus will be on Italy, which holds regional elections and a constitutional referendum Sunday and Monday. While such events have stoked debt-market volatility in recent years, Citigroup Inc. strategists including Jamie Searle say that’s unlikely this time round.They see the nation’s 10-year yield premium over Germany averaging 150 basis points -- near current levels -- through much of next year.Week AheadDebt sales:On Tuesday, Germany will auction 5 billion euros of two-year debt, the Netherlands will sell up to 6 billion euros of 30-year securities, and Spain may also offer up to 4.5 billion euros of 10-year notes through banks, according to Mizuho International PlcThe U.K. may also choose to issue debt maturing in 2061 through banks the same day, if history is a guide. The prior sale of this bond raised 7 billion pounds ($9.1 billion) in MayIn addition to the syndicated offering, the U.K. will offer a combined 4.2 billion pounds of conventional and inflation-linked debt across two sales next week. The BOE is set to buy back 4.4 billion pounds of debt across three operations.Belgium and Italy will also tap the market in the coming week and euro-area issuance is set to total a combined 21.5 billion euros, according to Citigroup Inc. There are no bond redemptions or coupons to be paid during the period.Euro-area, German, U.K. and French preliminary manufacturing and services PMI data for September are due WednesdayGermany’s Ifo survey for September will be published ThursdayAside from the PMI figures, U.K. data is mostly second tier and backward looking with the exception of government borrowing numbers for August on TuesdayECB policy maker speeches are headlined by President Christine Lagarde who speaks at the Franco-German Parliamentary Assembly on Monday. Robert Holzmann chairs a workshop on the same day. Chief economist Philip Lane, Francois Villeroy and Fabio Panetta speak on Tuesday. Pablo Hernandez de Cos who is the sole policy maker speaking on Wednesday speaks again on Friday, as does Francois VilleroyBOE governor Andrew Bailey is scheduled to speak at British Chamber of Commerce events on Tuesday and Thursday, with investors seeking further insight in to the possibility of negative ratesFitch Ratings reviews the U.K. and DBRS Ltd. reviews the EU on FridayFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    GLOBAL MARKETS-Equities sink on virus angst, Fed aftermath; gold, yen rise

    Global equity markets slid on Friday as investors sought direction after this week's U.S. Federal Reserve meeting and a jump in coronavirus cases in Europe rattled sentiment, while gold rose and safe-haven buying lifted the Japanese yen. The dollar posted its fifth straight day of declines against the yen as Japan's monetary policy of yield curve control pushes up real interest rates. U.S. technology-related stocks reversed early gains on Wall Street to extend their losses to a third day, while the S&P 500 and Nasdaq posted a third straight week of declines.

  • FOREX-Dollar falls against the yen, sterling dips on COVID worries

    FOREX-Dollar falls against the yen, sterling dips on COVID worries

    * Dollar index up 0.04% , dollar declines against the yen * Kiwi dollar gains after positive economic comments * Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Updates prices, adds comment) By Sinéad Carew NEW YORK, Sept 18 (Reuters) - The U.S. dollar lost ground to the Japan's yen for the fifth straight day and the yen was at a seven-week high against the greenback on Friday as investors sought safety amid concerns about a resurgence in coronavirus cases in Europe and a lack of progress in U.S. fiscal stimulus negotiations. Strategists also cited investor nerves ahead of the Nov. 3 U.S. election and U.S.-China tensions as the dollar index registered its first weekly decline since August.