|Day's Range||1.5060 - 1.6220|
|52 Week Range||1.4750 - 3.2480|
U.S. stocks fell in a volatile session of trading, after President Donald Trump wrote in a series of Twitter posts that he would be ordering U.S. companies to “immediately start looking for an alternative” to their business operations in China. Yahoo Finance’s Myles Udland, Emily McCormick, and Julia La Roche discuss on The Final Round.
President Donald Trump tweeted this morning, questioning whether Fed Chair Jerome Powell is a "bigger enemy" to the U.S. than China's president Xi Jinping.
Yahoo Finance's Brian Sozzi and Jared Blikre talk to Gautam Khanna, Insight Investment Management Senior Portfolio Manager and Nela Richardson, Edward Jones Investment Strategist to discuss what's moving the markets around the opening bell.
The announcement caught traders off-guard and they responded in textbook fashion by buying safe-haven Treasury bonds, Japanese Yen and gold, while selling higher-yielding U.S. stocks. However, the moves were muted as investors put faith in Powell’s ability to soothe the sudden volatility.
“We can, however, try to look through what may be passing events, focus on how trade developments are affecting the outlook, and adjust policy to promote our objectives,” he added.
Aug. 21: Cresset does not see recession in our immediate future. Investors should bear in mind that a recession will come, at some point, as part of the natural longer-term economic cycle. The value of U.S. stocks relative to gross domestic product is at levels not seen since 1999 and suggests that the market has become untethered from the economy.
U.S. Treasury yields slump Friday after China announces more tariffs on imports of U.S. goods, Federal Reserve chair Powell indicates that lower interest rates were possible, and President Trump orders American companies home, creating even more uncertainty for business planning.
Gold futures rally on Friday to tally a fourth straight weekly gain, after news that China was readying countermeasures against the U.S. in its tariff dispute.
The world’s central bankers and the scholars who follow them are having their annual moment of reflection in Jackson Hole, Wyo. But the theme of this year’s meeting, “Challenges for Monetary Policy,” may encourage an insular — and dangerous – complacency. Rather, 10 years of below-target inflation throughout the developed world, with 30 more expected by the market, and the utter failure of the Bank of Japan’s extensive efforts to raise inflation suggest that what was previously treated as axiomatic is in fact false: central banks cannot always set inflation rates through monetary policy. Europe and Japan are currently caught in what might be called a monetary black hole — a liquidity trap in which there is minimal scope for expansionary monetary policy.
Esther George, widely considered to be a policy hawk, and currently a voting member of the FOMC, appeared on television. Understand that from my point of view, easing is a technical necessity, and not directly due to economic weakness.
Dallas Fed President Robert Kaplan said Thursday he is at least open to the possibility of more interest rate cuts in coming months.
President Donald Trump kept up his pressure on the Federal Reserve over monetary policy on Thursday, as officials gathered for the central bank’s symposium in Jackson Hole.
U.S. Treasury yields rise Thursday after some Federal Reserve officials said they didn’t see the need for further rate cuts, underscoring the split within its rate-setting committee on the need for further policy easing.
Bank of America Corp.’s CEO Brian Moynihan says he doesn’t see a recession in the offing because the U.S. consumer remains healthy.
Gold futures post their lowest settlement in almost two weeks on Thursday, pressured by strength in bond yields as the Fed’s symposium of central bankers gets under way in Jackson Hole, Wyo.
Larry Summers, who was once President Barack Obama’s top choice to lead the Federal Reserve, warned the central bank not to be too confident it has the tools to respond to recession.
(Bloomberg) -- Bigger cracks are forming across America’s manufacturing foundation as lackluster global demand and persistent trade tensions led to the first contraction in U.S. factory activity since September 2009.The IHS Markit manufacturing Purchasing Managers’ Index slipped to 49.9 from a final July reading of 50.4, according to a preliminary August report Thursday that trailed all estimates in Bloomberg’s survey of economists. Fifty is the dividing lines between expansion and contraction. The reading for the U.S. follow others from Europe and Japan that showed shrinking factory activity.The U.S. data underscore the challenge of a bifurcated economy faced by Federal Reserve Chairman Jerome Powell and his colleagues -- a battered manufacturing sector, beset by global fragility and trade tensions, and an invigorated American consumer powered by still-robust employment and incomes.The IHS Markit’s gauge of manufacturing has declined five points since this year’s peak in January, according to the report which also showed the largest contraction in a decade for domestic orders and bookings from abroad.The figures surface ahead of Powell’s opening remarks Friday at the central bank’s annual Jackson Hole symposium. Comments from other Fed officials indicate the difficult task Powell has in delivering financial markets a consistent message about changing monetary policy.Kansas City Fed Bank President Esther George, in an interview with Bloomberg Television aired Thursday, said the economy doesn’t need lower interest rates.“When I look at where unemployment is and I look at where inflation is right now, I think we’re in a good place as long as the consumer can continue to pull the economy forward,” George said.U.S. stocks fell after Fed officials, including George, cast doubt on further interest-rate cuts and as traders assessed mixed economic data. Treasuries fluctuated.A week ago, the Commerce Department reported that retail sales rose by the most in four months. The fifth-straight advance indicates Americans, buoyed by plentiful jobs and wage gains, remain comfortable spending. A separate release Thursday showed applications for jobless benefits at a four-week low.Earnings from companies such as Walmart Inc. and Target Corp. have also signaled consumers’ strength.At the same time, a factory gauge from George’s district showed the worst contraction in activity since March 2016. Furthermore, Fed officials must keep in mind the risk that the retrenchment in manufacturing will spill over into the broader economy. The IHS Markit gauge of business at U.S. service providers fell to 50.9 from 53 in July and matched the lowest since February 2016.Thursday’s U.S. factory reports follow other preliminary IHS Markit data showing manufacturing shrank again in Germany and Japan, while stabilizing in France. The German manufacturing sector shrank for an eight consecutive month, underscored by a more than 25-point decline in a gauge of output prospects over the last two years.“The survey’s output data haven’t changed enough to dispel the threat of another slight contraction in GDP in the third quarter, especially given the deterioration in the forward- looking indicators,” Phil Smith, an economist at IHS Markit, said in a statement.Japan’s manufacturing sector contracted for the fourth month, while in France, the index reversed to show tepid growth.U.S. business expectations for the year ahead reached the lowest level in data back to July 2012, the IHS Markit data showed.Sluggish global demand is causing service firms to cut prices at the same time input costs weaken. A measure of prices charged contracted by the most since records began in October 2009.To contact the reporter on this story: Alex Tanzi in Washington at email@example.comTo contact the editors responsible for this story: Scott Lanman at firstname.lastname@example.org, Vince Golle, Margaret CollinsFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
U.S. stocks stumbled to session lows late-morning Thursday, relinquishing earlier gains on the day amid a pair of central bank speakers at a closely watched symposium in Jackson Hole, Wyo., and weak manufacturing data. The Dow Jones Industrial Average was 85 points, or 0.3%, lower at 26,120, after the blue-chip index had gained by as many as 187 points at the session peak. The S&P 500 index declined 0.6% at 2,907 and the Nasdaq Composite Index retreated 0.9%, suffering the most severe reversal of the major indexes, to reach 7,948. A fresh inversion of the so-called yield curve, where the spread between the 2-year Treasury note rise above the 10-year Treasury note , a condition that has preceded the past seven economic recessions, also rattled investor sentiment. Kansas City Fed President Esther George indicated Thursday in an interview on CNBC that she would not support further interest-rate cuts and Philadelphia Fed President Patrick Harker said he reluctantly supported the July rate cut but now wants to keep rates steady. On the economic front, IHS Markit’s most recent purchasing manager's index reading for the U.S. manufacturing services sectors, released Thursday, showed manufacturing slipping into contraction territory with a reading of 49.9 in August, from 50.4 in July and the services sector slowing to 50.9 in August from 53.0 in July, a 3-month low.
Rates are approaching the lowest level in three years, but are they stimulating Americans’ interest in buying homes?
The wave of countries with negative yields on their bonds, some say, is a signal of a global economy destined for faint if any growth at all.