Analysis: Under water: how the Bank of England threw markets a lifeline

Analysis: Under water: how the Bank of England threw markets a lifeline

Bank of England bought bonds after pension fund pleas Some UK pension funds faced problematic margin calls BoE support seen as giving window to build collateral British government’s unfunded tax plan spooked markets LONDON / NEW YORK, Oct 2 (Reuters) – Calls to the Bank of England saying some British pension funds were struggling to … Read more

Japan spent record of nearly $ 20.0 bln on intervention to support the yen

Intervention drains nearly 15% of readily available funds Japan can avoid selling US Treasury bills for now – analysts Impact of further intervention may diminish – analysts TOKYO, Sept 30 (Reuters) – Japan spent up to a record 2.8 trillion yen ($ 19.7 billion) intervening in the foreign exchange market last week to prop up … Read more

Wall St posts third straight quarterly loss as inflation weighs, recession looms

S&P 500 notches largest September percentage drop in 20 years All three major US stock indexes post three-quarter slumps Core inflation data hotter than expected Indexes down: Dow 1.71%, S&P 1.51%, Nasdaq 1.51% NEW YORK, Sept 30 (Reuters) – The S&P 500 closed the books on its steepest September decline in two decades on Friday, … Read more

UK pension funds ask corporates for cash after gilt blow-up -sources

LONDON, Sept 30 (Reuters) – British pension funds with big losses in gilt market derivatives have sought emergency funds from the companies they manage money for as they race to dump assets to raise cash, industry sources said on Friday. Many pension funds were caught out during the surge in bond yields this week that … Read more

Swiss National Bank ends era of foreign currency purchases

SNB halted foreign currency purchases to curb franc strength Sold 5 million Swiss francs worth of foreign currency in Q2 SNB spent 353 billion francs in 7-1 / 2 years on forex Policy seen as success by economists ZURICH, Sept 30 (Reuters) – The Swiss National Bank sold 5 million Swiss francs ($ 5.1 million) … Read more

China’s factory, services surveys suggest economy struggling to rebound

China Sept official manufacturing PMI above forecast Private survey shows factory activity contracted sharply Services sector activity growth slowed in Sept – official survey COVID curbs, softening foreign demand, property weakness weigh BEIJING, Sept 30 (Reuters) – China’s factory activity eked out growth in September, but a slowdown in services sector growth and a downbeat … Read more

US weekly jobless claims hit five-month low; economic picture darkening

Weekly jobless claims drop 16,000 to 193,000 Continuing claims decrease 29,000 to 1.347 million Second-quarter GDP contraction unrevised at 0.6% rate Gross domestic income revised down towards GDP WASHINGTON, Sept 29 (Reuters) – The number of Americans filing new claims for unemployment benefits fell to a five-month low last week as the labor market remains … Read more

Bank of England seeks to stem bond market turmoil after tax cut storm

BoE starts buying bonds, delays gilt sales IMF does ‘not recommend’ policies like UK growth plan Moody’s: economic plan is ‘growth negative’ Pound trading down 0.7% to $ 1.065 Kwarteng meets banking bosses again LONDON, Sept 28 (Reuters) – The Bank of England sought to quell a fire-storm in Britain’s bond markets, saying it would … Read more

Growth stocks lead bounce on Wall Street after brutal selloff

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, September 26, 2022. REUTERS / Brendan McDermid Register now for FREE unlimited access to Reuters.com Register Major indexes set to snap five-day losing streak Rate-sensitive tech, growth stocks shine Sharp rebound in oil prices boost energy firms Indexes … Read more

Fed officials stare down markets, say inflation is top focus

Register now for FREE unlimited access to Reuters.com Register WASHINGTON, Sept 26 (Reuters) – US Federal Reserve officials on Monday sloughed off rising volatility in global markets, from slumping US stocks to currency turbulence abroad, and said their priority remained controlling domestic inflation. “There are interactions there,” Cleveland Fed President Loretta Mester said, noting that … Read more