Morning Digest

Consumer Prices Bear Out Yellen’s Subdued Inflation Outlook

Consumer Prices Bear Out Yellen’s Subdued Inflation Outlook The pickup in consumer prices at the start of 2016 just about stalled out in March, supporting Federal Reserve Chair Janet Yellen’s view that the central bank should raise interest rates only gradually. The core consumer-price index, which excludes food and fuel, increased 0.1 percent last month, Read More

U.S. Stocks Tumble, Bonds Rally as Fed Warns on Global Growth

U.S. stocks tumbled, while Treasuries gained with the yen as the Federal Reserve’s warning that the global economic outlook was uncertain rippled through markets. The Standard & Poor’s 500 Index slipped with European stocks, while gold gained after Fed Chair Janet Yellen sounded caution over slowing growth in China. German 10-year bund yields tumbled the most Read More

ECB Leaves Rates on Hold as Investors Look to Draghi for QE Hint

The European Central Bank left interest rates at record lows, shifting the focus to President Mario Draghi’s press conference for clues on whether he sees a need to step up stimulus. The 25-member Governing Council kept the main refinancing rate at 0.05 percent at its meeting in Frankfurt on Thursday, as predicted by all 47 Read More

PBOC’s Yuan Reference Rate Drops for Third Day After Devaluation

China’s yuan reference rate fell for a third day, widening the scope for declines in the currency after Tuesday’s devaluation. The fixing dropped 1.1 percent to 6.401 per dollar, after slides of 1.6 percent and 1.9 percent in the last two days. That’s 0.2 percent weaker than Wednesday’s closing level in Shanghai. The spot rate Read More

The Odds of a September Rate Hike Have Surged in the Last Two Days

Traders have never been more convinced of a September rate hike by the Federal Reserve. The chances of an interest-rate increase next month reached 52 percent Wednesday,  up from just 38 percent just two days earlier. What’s fueled the change of heart? Hawkish comments from Fed Bank of Atlanta President Dennis Lockhart on Tuesday, and a surprisingly Read More

Five Things Everyone Will Be Talking About Today

Euro inflation unchanged, Commodities rout continues and China stocks worst monthly decline in six years. Here are some of the things that people in markets are talking about this morning. Euro-area inflation This morning’s flash estimate of inflation from Eurostat, the European statistical agency showed euro-area inflation unchanged at 0.2 percent in July, in line with Read More

Greece’s Euro Exit Back on the Agenda Next Year, Economists Say

Don’t pack away the currency presses just yet, Greece’s euro exit may be back on the table next year. There’s still a danger that Greece will be forced out of the euro region by the end of 2016, according to 71 percent of respondents in a Bloomberg survey of 34 economists. Seventy percent said they Read More

Greece looks to reopen bailout talks as euro future in doubt

ATHENS, Greece (AP) — Greece and its membership in Europe’s joint currency faced an uncertain future Monday, with the country under pressure to reach a bailout deal with creditors as soon as possible after Greeks resoundingly rejected the notion of more austerity in exchange for aid. With Greek banks running out of cash and facing Read More

Greece Imposes Capital Controls as Fears of Grexit Grow

Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. European stocks and Greek bonds tumbled. The measures, which were announced in the dead of night, limit daily cash withdrawals to 60 euros ($66) Read More

Global Bond Rout Deepens as Draghi Says Get Used to Volatility

Government bonds extended a global slump that has sent yields to the highest this year after European Central Bank President Mario Draghi said markets must get used to periods of higher volatility. A decline in Germany’s 10-year bunds, the euro area’s benchmark sovereign securities, pushed borrowing costs to a seven-month high. Treasuries tumbled while Spanish Read More