By Daniel Kruger The Wall Street Journal Tues., Dec. 4, 2018 A weekslong rally in government bonds carried the yield on the benchmark 10-year Treasury note to its lowest close in almost three months Monday, signaling some investors are increasingly worried about the pace of U.S. growth. This year’s climb in the 10-year yield—which helps set borrowing costs for companies, consumers and state and local governments—has stalled in recent weeks, weighed down by factors including trade tensions, stock swings, falling oil prices and concerns that an economic slowdown outside the U.S. could weigh on the expansion here. In one sign that those concerns persist, government bonds rallied after the U.S. and China reached a 90-day trade truce. While the news initially sent yields higher along with stocks, the truce’s temporary nature and the two countries’ significant remaining differences later helped spur gains in government debt, dragging the yield … [Read more...] about Economic doubts drag down U.S. Treasury benchmark rate
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U.S. and China reach 90-day ceasefire in their trade dispute
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By Paul Wiseman Zeke Miller And Catherine Lucey, The Associated Press Sat., Dec. 1, 2018 BUENOS AIRES, ARGENTINA—The United States and China reached a 90-day ceasefire in a trade dispute that has rattled financial markets and threatened world economic growth. The breakthrough came after a dinner meeting Saturday between U.S. President Donald Trump and Chinese leader Xi Jinping at the Group of 20 summit in Buenos Aires. Trump agreed to hold off on plans to raise tariffs Jan. 1 on $200 billion (U.S.) in Chinese goods. The Chinese agreed to buy a “not yet agreed upon, but very substantial amount of agricultural, energy, industrial” and other products from the United States to reduce America’s huge trade deficit with China, the White House said. The truce, reached after a dinner of more than two hours, buys time for the two countries to work out their differences in a dispute over Beijing’s aggressive drive to supplant U.S. technological … [Read more...] about U.S. and China reach 90-day ceasefire in their trade dispute
Asian currencies largely stationary as U.S. tariff news awaited
Most emerging Asian currencies barely changed levels on Wednesday as the dollar eased fractionally after a series of gains, while caution about global economic health kept investors from making large moves. Risk appetites for emerging markets were largely subdued ahead of employment numbers from the United States later in the week. A stronger showing could increase the chances of four rate hikes by the Federal Reserve this year. Investors were also wary about the prospect of fresh U.S tariffs on another $200 billion of Chinese goods that could be unveiled after a public comment period on such a proposal end on Thursday. Sentiment was further hurt after news that South Africa had slipped into recession, joining Turkey and Argentina. "I think we're just seeing a little bit of a pullback or profit taking after a strong run in the dollar earlier in the week," said Khoon Goh, ANZ's Singapore-based head of Asia research. "At this point there's still further pressure on EM generally, and … [Read more...] about Asian currencies largely stationary as U.S. tariff news awaited
Investors hide in U.S. as Washington stirs markets abroad
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By Riva Gold The Wall Street Journal Wed., Aug. 15, 2018 U.S. foreign policy has driven sharp swings in European and Asian markets this summer, drawing investors into the safety of the U.S. It is also raising questions about how long U.S. markets can continue to outpace the rest of the world. The White House’s recent actions on trade and international sanctions have amplified steep declines across markets in Turkey, Russia and China at a time emerging economies were already grappling with a stronger dollar and decelerating global growth. U.S. stocks have beaten foreign stocks in part as investors seek a more stable market during the rocky period, analysts say. Strong U.S. economic and earnings growth has helped. While the S&P 500 has risen 4.5% this quarter and is trading within roughly 1% of its all time high, the MSCI AC World ex-USA Index has fallen 1.3% this quarter and is down nearly 7% for the year so far. “Whether it’s sanctions, tariffs … [Read more...] about Investors hide in U.S. as Washington stirs markets abroad
Trudeau’s reaction to U.S. economic policy looms over G-7 summit
By David Olive Business Columnist Mon., June 11, 2018 The global buying opportunity in the loonie Global investors in loonie-denominated investments have to be thinking of the loonie’s upside potential over the next few months. The Bank of Canada is getting bolder in its expectations of stronger than earlier forecast GDP growth this year, justifying a string of hikes in its key lending rate. A strengthening loonie is, of course, a kicker for any security, property or industrial investment whose value is measured in Canadian currency. One of the year’s biggest under-reported stories is the extraordinary performance of the loonie: It has been the best-performing currency among 16 advanced economies for the past two months. The optimism flavouring the BoC’s most recent rate decision last week suggests a considerable further hike in the loonie’s value in the medium term, even as global investors have already begun pushing up the yield on … [Read more...] about Trudeau’s reaction to U.S. economic policy looms over G-7 summit