The Conference Board Leading Economic Index is sounding a recession alarm, and economic downturns have historically coincided with sharp declines in the S&P 500.
World stocks rallied on Thursday, led by surging European shares and a larger-than-expected rise in U.S. weekly jobless claims that buoyed interest rate cut hopes, while the dollar eased as the market awaits key inflation data next week. Following a sluggish open, the major U.S. indices pulled higher with the Dow industrials rising for a seventh straight session.
World stocks edged higher on Thursday, helped by surging European stocks and a larger-than-expected rise in U.S. weekly jobless claims that buoyed interest rate cut hopes, while the dollar eased as the market awaits key inflation data next week. After a sluggish open on Wall Street, the major U.S. indices pulled higher, new signs of a softening labor market provided hope the Federal Reserve to could cut interest rates not only once this year but twice. U.S. initial claims for state unemployment benefits increased more than expected by 22,000 to a seasonally adjusted 231,000 for the week ended May 4, the Labor Department said.
U.S. Treasury yields held firm on Wednesday on optimism that the Federal Reserve will lower rates more than once this year, but investors had little incentive to trade ahead of important inflation data next week. The Treasury will sell $42 billion in 10-year notes later in the day, after Tuesday's well-received sale of 3-year Treasuries. The yield on benchmark U.S. 10-year notes rose 2.1 basis points from late Tuesday to 4.482%.
Steady Treasury yields and improving corporate earnings have helped revive Wall Street's bulls in the opening days of May trading.
-- China’s services sector grew slightly more than expected in July, private purchasing managers index data showed on Monday, indicating that some facets of the...
The yield on the benchmark 10-year Treasury note fell on Tuesday amid persistent hope that the Federal Reserve would lower rates this year, while other maturities were steady after a chunky sale of three-year notes saw decent demand without a rate concession. The Treasury sold $58 billion of the notes at a high yield of 4.605%, about a basis point below where three-years were trading at the time, with a bid-to-cover ratio of 2.63, the highest since a three-year sale in January. The Treasury will sell $42 billion in 10-years on Wednesday and $25 billion of 30-year bonds on Thursday.
-- China’s services sector grew more than expected in May, private purchasing managers index data showed on Wednesday, as persistent stimulus measures from Beijing...
-- Australia’s economy grew less than expected in the first quarter, gross domestic product data showed on Wednesday, as weak consumption and softer contribution from...
-- Australia’s trade balance fell more than expected to a five-month low in February, as exports- particularly those of Australia's key iron ore products- fell...