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.
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.
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.
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