Latest Finance-Economy News
Trump to Nominate Kevin Warsh as Next Fed Chair
US President Trump is set to announce the nomination of former Fed Governor Kevin Warsh as the next Fed Chair on Friday, boosting the USD in anticipation. This move has raised US 10-year treasury yields as markets absorb the potential policy shift.
Money markets still expect nearly two Fed rate cuts this year despite the Fed holding rates at 3.5-3.75%.
Fed Holds Rates Steady, Upgrades Growth Outlook
The US Fed left interest rates unchanged at 3.5-3.75% as expected, upgrading growth to 'solid' and noting unemployment stabilization. Dissent from Governors Waller and Miran favored a cut, but no change occurred.
A rate cut seems unlikely soon without weaker data, pending the new Chair's influence.
Trump Threatens 100% Tariff on Canada Over China Deal
Trump threatened a 100% tariff on Canada if its trade deal with China proceeds, and 25% on South Korea. Conflicting signals on the falling USD emerged, with Trump calling it 'great' while Treasury Secretary Bessent wants a strong dollar.
This adds to geopolitical trade tensions impacting global markets.
Oil Prices Slip But Eye Biggest Monthly Gain in Years
Oil slipped over 1% Friday from multi-month highs but is set for strong back-to-back weekly gains due to US strike concerns on Iran. Broader energy sector rallies amid geopolitical risks potentially disrupting supplies.
Bloomberg Commodity Index heads for 12% monthly gain, led by energy and metals.
Copper Hits Record High Above $14,000
Copper surged to a record above $14,000 as speculators pile in amid geopolitical turmoil. Metals broadly rose, though gold and silver fell from highs in market whiplash.
Investors seek metals as havens against dollar concerns and conflicts.
US Dollar Rallies on Warsh Nomination, AUD Weakens
USD strengthened on expectations of Trump's Warsh Fed Chair nomination, reversing recent downtrend. Australian dollar weakened after surging above $0.70 on RBA hike bets and USD fall.
Trade-weighted AUD index hit five-year high despite USD dynamics.
US Consumer Confidence Falls Sharply in January
Conference Board’s US consumer confidence dropped sharply in January amid mixed economic data. This contrasts Fed's solid growth view, highlighting potential household concerns.
Upcoming PPI and Chicago PMI data could sway rate expectations further.
Banks Borrow Record ÂŁ100.9 Billion from BoE Repo Tool
UK banks borrowed a record ÂŁ100.9 billion from Bank of England's short-term repo facility, signaling high cash demand. This occurs as the central bank drains excess liquidity from the system.
It underscores strains in financial liquidity management.
Tech Stocks Hit by AI Spending Fears, Mixed Equities
US equities ended mixed as AI spending fears pressured tech; Europe slipped on earnings, Hong Kong rose on property relief. Microsoft's earnings disappointment caused a 10% drop, while Meta ad revenue grew 10%.
Tech turbulence dominates amid broader market caution.
US Faces Potential Government Shutdown Over ICE Funding
Democrats threaten to block ICE funding after a fatal shooting in Minneapolis, risking partial shutdown from Sunday. This adds to fiscal tensions with Trump policies ahead of midterms.
Healthcare cuts and other issues compound uncertainty.
PPI Data Headlines Friday's US Economic Calendar
US Producer Price Index (PPI) MoM expected at 0.2%, Core at 0.3%, with YoY figures also key for inflation trends. Chicago PMI steady at 43.5 and Fed's Bowman speech to follow.
These releases could shift Fed rate cut expectations significantly.
Geopolitical Risks Rise with Iran Threats, Venezuela Capture
Trump intensified threats of US attack on Iran, risking nuclear cascade and oil disruptions. US capture of Venezuela's Maduro and Greenland control bids heighten global uncertainty.
EU pauses US trade deal ratification amid tariff pressures.