Economists Forecast No Interest Rate Hike For Canada Until July 2011
Ottawa, Ontario, Canada (AHN) – Economists agree that the Bank of Canada will likely keep interest rates at its present level until July 2011.
They believe that Bank of Canada Governor Mark Carney will wait for developments in the U.S. economy and the eurozone.
The Canadian central bank is expected to release its decision on the key lending rate on Tuesday after the monetary board meeting.
The current key lending rate is still a low 1 percent. The governor kept it at that level due to uncertain economic conditions and a lower-than-expected third quarter growth rate due to weak trade and real estate investments.
The fixed-income markets predict 50-50 odds that the Bank of Canada will increase key lending rates in March and 100 percent chance in April.
According to the C.D. Howe Institute, the central bank should keep benchmark interest rates on Tuesday and on Jan. 18. It also forecast that by July next year the key lending rate should not exceed 1.5 percent.
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Tajikistan: China and Russia trade in rubles and Yuan, farewell to the U.S. dollar
Prime Ministers of both countries agree to trade with their currencies, to affirm the importance at the expense of the dollar. Meanwhile, the two countries take part in the meeting of the SCO in Tagik…
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Daily Outlook – North Korea Shelling Sparks Stock Plunge
U.S. Dollar Trading (USD) the market broke out of its recent range to the downside with stocks and most currencies plunging on fresh risk aversion. News that North Korea had shelled a South Korean Island and killed military personal and wounded civilians sent stocks falling sharply. FOMC Minutes als.
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Treasurys, dollar stay up after GDP revised higher
NEW YORK (MarketWatch) — Treasury prices and the dollar held onto gains on Tuesday after the U.S. said the economy grew at a 2.5% pace in the third quarter, revised from a previous estimate of 2%. Yields on 10-year notes , which move inversely to prices, fell 5 basis points to 2.75%. The dollar index , which tracks the performance of the greenback against a basket of other major rivals, rose to 79.143 from 78.611 in North American trade late Monday. The euro fell to $1.3502, versus $1.3629 Friday. Bonds and the dollar were higher before the data as military tensions on the Korean Peninsula and worries about Ireland and Portugal had investors seeking relatively safer assets. Still to come is data on existing home sales, the Federal Reserve’s next buyback, the government’s sale of 5-year notes and the release of the minutes from the most recent Fed meeting.
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Expect inflation, Morgan Stanley tells investors
SAN FRANCISCO (MarketWatch)– The likelihood that recent Federal Reserve moves will stoke U.S. inflation prompted Morgan Stanley Smith Barney’s Global Investment Committee to increase inflation-linked securities and commodities exposure in recommended portfolio allocations, the brokerage firm said Monday. Meanwhile, the firm trimmed suggested exposure to emerging markets debt and real-estate investment trusts. Stock investment recommendations continue to underweight most developed markets and overweight emerging markets and commodity-sensitive Canadian and Australian equities. The firm is keeping a neutral, market-weight exposure to U.S. small- and midcap stocks. As for currencies, Morgan said that most of the U.S. dollar’s trade-weighted weakness is likely done, but the firm still expects major developed-market currencies to depreciate relative to the Chinese yuan and other emerging-market currencies.
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Oil falls below $82
Oil fell below $82 a barrel along
with falls in broader markets due to renewed
worries China may hike interest rates to fight inflation. |||
Oil fell below $82 a barrel along
with falls in broader markets on Wednesday due to renewed
worries China may hike interest rates to fight inflation.
Feeding into market expectations, Chinese Premier Wen
Jiabao said his government was preparing steps to tame price
rises, the official Xinhua news agency reported late on Tuesday.
U.S. crude oil futures briefly fell more than $1 to $81.18 a
barrel, the lowest intraday-price since Oct. 29, and they were
trading 76 cents lower at $81.58 by 1228 GMT.
ICE Brent crude was trading 65 cents lower at $84.08, having
touched as low as $83.57.
U.S. crude fell for the fourth day, losing more than 7
percent of its value since it struck a two-year high of $88.63
on Thursday.
“The market has not found support yet. It is the demand side
and questions about the U.S. dollar and China’s capacity to
consume energy going forward,” said David Taylor, an analyst at
CMC Markets in Sydney.
The tendency of China’s central bank to raise interest rates
around the 20th day of the month makes this Friday a “sensitive
window” for a rate rise, an official newspaper said on
Wednesday, citing unnamed analysts.
China has overtaken the United States to become the world’s
largest energy consumer. Any slowdown to the Chinese economy may
lead to a dent in its energy demand, which has been growing
rapidly.
But some market participants said Chinese demand should
still support oil and commodities prices in the long term.
“Anything that acts as a gentle brake on the runaway growth
in China will be a very good thing in the longer term,” said
Christopher Bellew with Bache Commodities.
“And if it causes commodity prices to fall, it will only be
the short term.”
Bellew added a strong dollar was also weighing on oil prices
in the short term.
The dollar pushed up to near a seven-week high against the
euro on Ireland’s debt crisis while high-yielding currencies
suffered.
Risk aversion typically prompts investors to reverse bullish
bets across commodities.
Ireland committed itself on Wednesday to working with a
European Union-IMF mission on urgent steps to help its stricken
banking sector, a process that could lead to a bailout despite
Dublin’s deep reluctance.
A team from the European Commission, the International
Monetary Fund and European Central Bank will travel to Ireland
on Thursday to examine what measures may be needed if Dublin
decides to seek aid, euro zone finance ministers said.
Later in the day, the oil market focus will shift to weekly
oil data from the U.S. government.
Analysts in the Reuters poll forecast the data would show a
100,000 barrel increase in the U.S. crude oil stocks in the week
to Nov. 12.
Late on Tuesday, a separate set of data from the industry
group American Petroleum Institute showed crude oil inventories
declined by 7.7 million barrels in the week. Investors were
holding off ahead of the EIA numbers to see whether the big and
unexpected fall is confirmed. – Reuters
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U.S. Wholesale Prices Rise, Led by Gasoline
But excluding the volatile energy and food categories, the so-called core index of wholesale prices fell in October by 0.6 percent.
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Treasurys improve, dollar up after retail sales
NEW YORK (MarketWatch) — Treasury prices pared their losses and the dollar’s gains shrunk slightly on Monday after a report showed U.S. retail sales rose 1.2% in October, more than expected. Yields on 10-year notes , which move inversely to prices, rose 8 basis points to 2.87%. The dollar index which measures the greenback against a basket of six major currencies, climbed to 78.361, from 78.467 before the data and up from 78.106 late Friday in North American trading. The euro traded at $1.3651, from $1.3635 earlier and down from $1.3627. Still to come is the Federal Reserve buyback of Treasurys.
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Wall Street looks set for a higher open
U.S. stock futures are pointing to a slightly higher open as investors hope to move beyond worries about Ireland’s debt drama that dragged major indexes down last week.
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Wall Street Retreats As Investors Turn To Gold
New York, NY, United States (AHN) – U.S. stocks fell slightly on Monday as hedge-seeking investors went for commodities and sent gold prices up to a record high of $1,403 an ounce.
The Dow Jones Industrial Average lost 37 points or 0.3 percent to close at 11,407. Boeing Co., Home Depot Inc. and Travelers Cos. were the top losers.
The Standard & Poor’s 500 Index gave up 2.6 points or 0.2 percent to close at 1,223.
The Nasdaq Composite Index gained a point ending at 2,580.
Oil for December delivery gained 36 cents to settle at $86.85 per barrel.
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