China industrial production grows in April, retail sales disappoint
-- Chinese industrial production grew more than expected in April, indicating that a recovery in the country’s massive manufacturing sector remained on track amid...
-- Chinese industrial production grew more than expected in April, indicating that a recovery in the country’s massive manufacturing sector remained on track amid...
In a recent development shedding light on the possible direction of U.S. monetary policy, several Federal Reserve officials have advocated maintaining high interest rates for an extended duration. The statement signifies that Federal officials are not inclined to hasten any rate cuts. According to King Ten, Cleveland Fed President Mester, New York Fed President Williams, and Richmond Fed President Barkin all expressed on Thursday that the process of inflation reaching the 2% target may take more time than anticipated. This viewpoint indicates a stance in favor of keeping interest rates higher for a while as officials wait for stronger evidence of inflation deceleration.
According to King Ten, CME's "Fed Watch" tool provides insightful data, predicting that the U.S. Federal Reserve is highly likely to keep interest rates the same for the foreseeable future. In June, it forecasts a 91.3% chance that interest rates will remain unchanged and a relatively small 8.7% probability of an interest rate cut of 25 basis points. Looking a bit further, the "Fed Watch" tool also predicts a 68.6% chance of unchanged interest rates until August, a 29.2% probability of a cumulative 25 basis point rate cut, and a mere 2.2% likelihood of a more significant cumulative rate cut of 50 basis points.
Lower mortgage rates might not be enough to help homebuyers.
In a recent turn of events, a Reuters poll indicates that the market increasingly expects the Reserve Bank of New Zealand (RBNZ) to implement a 25 basis point rate cut in the fourth quarter, lowering the interest rate to 5.25%. This information comes from the Golden Ten report, presenting a shift in expectations compared to April's survey, which had forecasted a rate cut in the third quarter.
Mortgage rates have slowly fallen for the second week in a row, with the 30-year fixed mortgage rate just above 7%. With the potential for mortgage rates to come down further, the housing market may see a bit of a turnaround for homebuyers. However, the supply of homes is still low. Saint-Gobain North America CEO Mark Rayfield (SGO.PA) joins Market Domination Overtime to discuss the state of homebuilding and the broader housing market. On the fundamentals of homebuilding in North America, especially after COVID-19, Rayfield states: "It's still a very robust market. So for the vast majority of building materials, if you look at exterior products and roofing and siding and gypsum and insulation, the market is there, thereabouts at capacity. Not sold out like it was in COVID. But depending on where you are regionally, there could be some supply challenges, not long. So that is another reason I say the market remains quite robust at these housing levels." For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Nicholas Jacobino
The famous hedge fund manager bought shares of a gold fund in Q1.
According to Blockworks: In a noteworthy development, the U.S. Senate passed Joint Resolution 109 last Thursday, aiming to overturn the controversial digital asset accounting rules under the Employee Accounting Bulletin (SAB) 121, instituted by the Securities and Exchange Commission (SEC). SAB 121, proposed in March 2022 and enacted the following month, mandates custodians of digital assets to list liabilities and "matching assets" on their balance sheets for all the cryptocurrencies they hold. This resolution will now proceed to President Joe Biden for review. The White House has previously communicated that the President would exercise his veto power once the resolution gets Senate approval. The staff at SEC has justified the accounting rules, arguing that such measures are crucial to offset "the noteworthy risks and uncertainties inherent in protecting crypto assets." This motion by the Senate underlines the ongoing discourse surrounding the regulatory landscape for cryptocurrencies.
ETFs make it easier to invest in the stock market. Instead of buying individual stocks and monitoring their performances, you can get exposure to numerous holdings through an ETF. Some ETFs track popular indices and have low expense ratios because of their passive management approach. Other funds have higher expense ratios since managers are more active in researching stocks, allocating capital across positions and adjusting the fund’s holdings more often. Investors ultimately want positive retu
All three major indices look set to extend their recent record highs Thursday.