Latest news with #Treasuries
Time of India
8 hours ago
- Business
- Time of India
US futures pare losses as Trump weighs Iran role
US equity futures moderated declines as President Donald Trump weighs whether to back Israel militarily in its conflict with Iran. Contracts for the S&P 500 were down around 0.3% from Wednesday's close in early Asia hours, compared with a 0.9% drop on Thursday when US markets were closed for the Juneteenth holiday. Shares in Japan and Australia held to tight ranges. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Average Cost To Rent A Private Jet May Surprise You (View Prices) Private Jet I Search Ads Learn More Undo While traders were offered some short-term clarity as the White House said Trump will decide within two weeks whether to strike Iran, the remarks did little to resolve broader uncertainty around potential US involvement and the risk of renewed energy-driven inflation. 'If the US does strike, you're going to see a big knee-jerk reaction,' said Neil Wilson, investor strategist at Saxo UK. 'No one will be wanting to make big long bets.' Brent crude fell around 2% Friday to moderate gains from earlier in the week. Treasuries were steady while the dollar weakened. The yen strengthened to around 145 per dollar. Live Events Traders' sentiment turned more cautious following a Bloomberg report that senior US officials are preparing for a possible strike on Iran in the coming days. Markets were already on edge after the Federal Reserve downgraded its estimates for growth this year and projected higher inflation. Israel struck more of Iran's nuclear sites on Thursday and warned its attacks could bring down Tehran's leadership as both sides awaited a decision from Trump on whether to join the offensive. Some extreme scenarios resulting from increased US involvement in the Israel-Iran war could push oil prices as high as $130 to $150 a barrel, particularly if Iran retaliates in a major way, said Jennifer McKeown, chief global economist at Capital Economics Ltd. Such a development would pause further policy easing by central banks, she said. 'Even though central banks would like to think that would be a temporary impact, I think it would be a brave central bank that would cut interest rates,' McKeown said on Bloomberg TV. Brent futures have been pricing in a geopolitical premium of about $8 a barrel since Israel and Iran began attacking each other last week, according to a survey of analysts and traders. US intervention in the conflict would bolster that further, but exactly how much would depend on the nature of the involvement, the nine respondents said. In Thailand, the political fate of Prime Minister Paetongtarn Shinawatra remained uncertain after mounting opposition calls and street protests for her to resign following a leaked phone call in which she criticized her army. Elsewhere in Asia, data set for release Friday include 1-year and 5-year Loan Prime Rates in China, inflation in Japan, and foreign exchange reserves in India. Markets are closed in New Zealand. Japan's Finance Ministry will seek feedback from market players later Friday over its planned reductions to super-long bond issuance as it takes steps to quell market turbulence.
Economic Times
8 hours ago
- Business
- Economic Times
US futures pare losses as Trump weighs Iran role
US equity futures moderated declines as President Donald Trump weighs whether to back Israel militarily in its conflict with Iran. ADVERTISEMENT Contracts for the S&P 500 were down around 0.3% from Wednesday's close in early Asia hours, compared with a 0.9% drop on Thursday when US markets were closed for the Juneteenth holiday. Shares in Japan and Australia held to tight ranges. While traders were offered some short-term clarity as the White House said Trump will decide within two weeks whether to strike Iran, the remarks did little to resolve broader uncertainty around potential US involvement and the risk of renewed energy-driven inflation. 'If the US does strike, you're going to see a big knee-jerk reaction,' said Neil Wilson, investor strategist at Saxo UK. 'No one will be wanting to make big long bets.'Brent crude fell around 2% Friday to moderate gains from earlier in the week. Treasuries were steady while the dollar weakened. The yen strengthened to around 145 per sentiment turned more cautious following a Bloomberg report that senior US officials are preparing for a possible strike on Iran in the coming days. Markets were already on edge after the Federal Reserve downgraded its estimates for growth this year and projected higher inflation. ADVERTISEMENT Israel struck more of Iran's nuclear sites on Thursday and warned its attacks could bring down Tehran's leadership as both sides awaited a decision from Trump on whether to join the extreme scenarios resulting from increased US involvement in the Israel-Iran war could push oil prices as high as $130 to $150 a barrel, particularly if Iran retaliates in a major way, said Jennifer McKeown, chief global economist at Capital Economics Ltd. Such a development would pause further policy easing by central banks, she said. ADVERTISEMENT 'Even though central banks would like to think that would be a temporary impact, I think it would be a brave central bank that would cut interest rates,' McKeown said on Bloomberg futures have been pricing in a geopolitical premium of about $8 a barrel since Israel and Iran began attacking each other last week, according to a survey of analysts and traders. US intervention in the conflict would bolster that further, but exactly how much would depend on the nature of the involvement, the nine respondents said. ADVERTISEMENT In Thailand, the political fate of Prime Minister Paetongtarn Shinawatra remained uncertain after mounting opposition calls and street protests for her to resign following a leaked phone call in which she criticized her in Asia, data set for release Friday include 1-year and 5-year Loan Prime Rates in China, inflation in Japan, and foreign exchange reserves in India. Markets are closed in New Zealand. Japan's Finance Ministry will seek feedback from market players later Friday over its planned reductions to super-long bond issuance as it takes steps to quell market turbulence. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Yahoo
11 hours ago
- Business
- Yahoo
US Plans to Ease Bank Capital Rules on Treasury Trades
The top US bank regulators plan to reduce a key capital buffer for the biggest lenders by up to 1.5 percentage points following concerns that it constrained their trading in the $29 trillion Treasuries market. The Fed said on Tuesday that it plans to meet on June 25 to discuss the plan. Katanga Johnson reports on Bloomberg Television.
Economic Times
a day ago
- Business
- Economic Times
Asian stocks slide after Fed's inflation warning
While officials continued to pencil in two rate cuts in 2025, they downgraded their estimates for growth this year while lifting forecasts for unemployment and inflation. Asian equities experienced a dip following Jerome Powell's inflation outlook. The Fed held rates steady, signaling two potential cuts this year, but tariff-driven uncertainty complicates policy easing. Powell highlighted that tariffs are likely to boost prices, impacting consumers. Markets await further details on the global economy and geopolitical tensions. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Asian equities dipped on Thursday after Federal Reserve Chair Jerome Powell said he expected inflation to pickup meaningfully in the coming regional gauge of shares was down 0.3%, as markets in Japan and Australia opened lower. US equity futures fell about 0.3% after the S&P 500 Index closed steady in the previous session. The dollar was little changed, and cash trading in Treasuries is closed Thursday for a US Fed left rates unchanged in its Wednesday meeting and indicated it still sees two further cuts this year. Yet Powell said tariff-driven economic uncertainty and inflation risk continued to complicate the central bank's bid to ease policy. Oil steadied as the Trump administration offered few clues about whether the US will join Israel's offensive aimed at destroying Tehran's nuclear broadly muted moves indicated a lack of direction across global markets as investors awaited further details on the global economy, US inflation and the prospect of heightened tension in the Middle East.'The Fed's assessment indicates that the economy is in good shape, aligning with current economic data,' said Tai Hui, APAC chief market strategist for JP Morgan Asset Management. 'However, trade policy, fiscal policy, and unintended consequences of policies from the Trump administration' are contributing to market volatility this year, he noted that increases in tariffs are likely to boost prices, while adding that the effects on inflation could be more persistent. He also declined to say if he'll stay on after his term ends.'Ultimately, the cost of the tariff has to be paid and some of it will fall on the end consumer,' Powell said. 'We know that's coming and we just want to see a little bit of that before we make judgments prematurely,' he Fed's decision to hold rates steady – coupled with Powell's latest warning on tariffs – underscores the delicate balance facing policymakers guiding the economy toward continued expansion. While officials continued to pencil in two rate cuts in 2025, they downgraded their estimates for growth this year while lifting forecasts for unemployment and inflation.'Powell played it safe,' said Haris Khurshid, chief investment officer at Karobaar Capital in Chicago. 'They're sticking to two cuts for now, but clearly rattled by tariffs. No urgency to move. It's a tough spot: growth slowing, inflation lingering, and geopolitical risk heating up.'While the median expectation for two rate cuts in 2025 didn't change, a number of officials lowered their projections. Seven officials now foresee no rate cuts this year, compared with four in March. Two others pointed to one cut this New Zealand dollar was stable Thursday after gross-domestic product data was slightly stronger than consensus expectations. Australian and New Zealand bond yields were little changed. The yen strengthened 0.2% against the in Asia, data set for release employment in Australia and rate decisions in Taiwan and the Philippines. Thailand faces fresh political uncertainty after the second-largest party in Prime Minister Paetongtarn Shinawatra's government quit the ruling Thursday the central banks of Switzerland, Norway, Turkey and the UK will also hand down rate decisions.
Bloomberg
a day ago
- Business
- Bloomberg
Asian Stocks to Fall After Fed's Inflation Warning: Markets Wrap
Asian equities were primed to open lower Thursday after Federal Reserve Chair Jerome Powell said he expects inflation to pickup meaningfully in the coming months. The Fed left rates unchanged in its Wednesday meeting and indicated it still sees two further cuts this year. Yet Powell said tariff-driven economic uncertainty and inflation risk continued to complicate the central bank's bid to ease policy. The dollar strengthened while Treasuries and US stocks were little changed Wednesday. US markets are closed Thursday for a holiday.
