Overseas Headlines – October 14, 2024

October 14, 2024

United States:

Volatile Bond Market Puts Traders on Defense Amid Fed-Cut Doubts

Bond investors are going on defense as the outlook for the Federal Reserve’s interest-rate cutting path turns more uncertain.

The combination of sticky inflation and weak labor-market figures last week led traders to trim bets on the degree of Fed easing left in 2024, while also driving yields to the highest since July. Meanwhile, a closely watched measure of expected volatility in Treasuries rose to the highest since January.

https://www.bloomberg.com/news/articles/2024-10-13/volatile-bond-market-puts-traders-on-defense-amid-fed-cut-doubts?srnd=phx-economics-v2

 

Europe:

Euro Zone’s Cooling Jobs Market Feeds Calls for Faster ECB Cuts

Cracks are finally appearing in the euro zone’s labor market after years of unexpected resilience — spurring the European Central Bank to lower interest rates more speedily.

Despite still record-low joblessness following the inflation shock and a struggling economy, policymakers see signs of a shift that’s helped persuade them to back another reduction in borrowing costs this week.

https://www.bloomberg.com/news/articles/2024-10-14/euro-zone-s-cooling-jobs-market-feeds-calls-for-faster-ecb-cuts?srnd=phx-economics-v2

Asia:

Chinese Stocks Climb as Traders See Hope in Beijing’s Promises

Chinese stocks overcame a bout of early volatility to post their biggest gain in a week on Monday, suggesting that investors are hopeful the government will deliver on its promise of more fiscal support.

At a much-anticipated briefing on Saturday, Finance Minister Lan Fo’an vowed new steps to support the property sector and hinted at greater government borrowing. While authorities refrained from giving a headline dollar figure that investors had sought, Goldman Sachs Group Inc. saw the latest measures as a sign of increased policy focus on growth. It upgraded its forecasts for China’s economic expansion in 2024 and 2025.

https://www.bloomberg.com/news/articles/2024-10-14/chinese-stocks-rebound-as-ministry-hints-at-more-fiscal-support?srnd=phx-economics-v2

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2024-10-14T09:08:33-05:00