$FIVE

By Daniel Wiessner (Reuters) -A U.S. civil rights agency sued Tesla (NASDAQ:TSLA) Inc on Thursday, claiming the electric carmaker has tolerated severe harassment of Black employees at its flagship Fremont, California, assembly plant, in charges similar to cases brought by the state and by Tesla employees. The U.S. Equal Employment Opportunity Commission (EEOC) said in the lawsuit filed in federal court in California that from 2015 to the present, Black workers at the Tesla plant have routinely been subjected to racist slurs and graffiti, including swastikas and nooses. Tesla has failed to investigate complaints of racist conduct and has fired or otherwise retaliated against workers who reported harassment, the EEOC said in the lawsuit. The lawsuit adds federal charges to discrimination claims by the state of California and lawsuits by Tesla employees. It follows the breakdown of settlement talks with the EEOC after Tesla announced that the agency had formally raised its concerns last year. The EEOC routinely settles lawsuits with employers, and it is relatively rare for the agency’s cases to go to trial. Tesla faces several other race discrimination lawsuits that make similar claims, including a class action by workers at the Fremont plant and a lawsuit by a California civil rights agency. The company in those cases has said it does not tolerate discrimination and takes workers complaints seriously. Tesla did not immediately respond to a request for comment. The company's stock price rose 2.4% on Thursday to $246.38. "If the federal government gets involved, it certainly adds credibility to the claims," said Stephen Diamond, a law professor at Santa Clara University, who noted that he has advised investors on social responsibility at Tesla. "Major institutional investors like pension funds will be very concerned about this type of behavior," he said. The EEOC in the lawsuit said it began investigating Tesla after the five-member commission's chair, Charlotte Burrows, filed an internal complaint known as a charge against the company. After finding last year that there was "reasonable cause" to believe Tesla had violated the federal law banning workplace race discrimination, the agency tried and failed to enter into a settlement agreement with the company, according to the lawsuit. Burrows in a statement said that combating widespread workplace harassment is a key priority for the EEOC. "Every employee deserves to have their civil rights respected, and no worker should endure the kind of shameful racial bigotry our investigation revealed,” she said. The EEOC’s lawsuit seeks compensatory and punitive damages for an unspecified number of Black workers, along with an order requiring Tesla to overhaul its policies prohibiting discrimination and retaliation. Tesla is seeking to fend off similar claims from the California Civil Rights Department, a state-level counterpart of the EEOC. The department alleges that Tesla discriminated against Black workers when making decisions about pay, promotions and work assignments. The department's lawsuit alleges violations of California law, while the EEOC case involves similar federal laws. Tesla has claimed that the California department's lawsuit was politically motivated and has argued that the agency violated state law by suing without first notifying the company of all of the claims or giving it a chance to settle. A California judge last year rejected Tesla's motion to dismiss that case, and is now considering various issues related to pre-trial discovery. In addition, a Black former elevator operator at the Fremont plant, Owen Diaz, is seeking a third trial in his 2017 lawsuit claiming he was subjected to severe racial harassment after a jury in April awarded him $3.2 million. A different jury in 2021 had awarded Diaz $137 million, but a federal judge said that was excessive and Diaz opted for a new trial instead of a reduced award of $15 million. Tesla is also facing a class action lawsuit in California state court over the alleged mistreatment of Black factory workers. About 240 workers have moved to join that lawsuit.

Investing.com -- Oil prices rose Thursday, rebounding from the previous session’s sharp losses in the wake of the U.S. Federal Reserve signaling interest rates would stay higher for longer than previously expected. By 09:35 ET (13:35 GMT), the U.S. crude futures traded 1.5% higher at $90.97 a barrel, while the Brent contract climbed 1.1% to $94.58. BOE and SNB pause tightening cycles Confidence has returned to the market Thursday following the news that both the Bank of England and the Swiss National Bank decided to keep interest rates unchanged at their policy-setting meetings. The BOE halted a run of 14th consecutive increases, starting in December 2021, and the SNB ended its run of five consecutive increases since it began lifting rates out of negative territory in June 2022. This raised hope that the era of monetary tightening in Europe may be coming to an end, potentially lifting economic activity and thus crude demand. Hawkish Fed stance hit market This contrasted with the tone on Wednesday after the U.S. Federal Reserve projected another quarter-percentage-point increase by year-end, while signaling that it will take longer than expected to start easing. This stance, it is feared, may dampen economic growth and overall fuel demand, while also leading to the U.S. dollar surging to its highest since early March, making oil and other commodities more expensive for buyers using other currencies. Both benchmarks fell sharply then, but remain not far away from 10-month highs and on course for a fourth consecutive winning week given the continuous concerns on tight supply globally entering the fourth quarter. Supply to remain tight Production cuts from the Organization of the Petroleum Exporting Countries and allies are set to continue until the end of the year, while data from the U.S. Energy Information Administration, in its monthly drilling productivity report earlier this week, showed U.S. oil production from top shale-producing regions was on track to fall for a third month in a row in October to the lowest level since May 2023. The EIA also reported on Wednesday that U.S. crude inventories fell just over 2 million barrels last week, less than the over 5 million barrels forecast by the industry body American Petroleum Institute on Tuesday, but still an indication that demand remains solid in the largest oil consumer in the world.

Investing.com -- U.S. stocks are rising as investors await the outcome of the highly-anticipated Federal Reserve's policy meeting. At 9:39 ET (13:39 GMT), the Dow Jones Industrial Average was up 89 points or 0.3% while the S&P 500 was up 0.3% and the NASDAQ Composite was up 0.2%. Fed’s rate decision looms The U.S. Federal Reserve concludes its two-day meeting later Wednesday, and is widely expected to keep interest rates steady at a range of 5.25% to 5.50%, after having boosted them from near zero in around a year and a half in an attempt to control inflation. While many investors believe the Fed will be done with rate hikes this year, there are some that still think another rate increase is possible in November, or perhaps December. Last week’s data signaled an easing in core inflation, but surging oil prices resulted in the headline inflation figure posting its fastest growth rate in 14 months. With this in mind, all eyes will be on Chair Jerome Powell’s press conference after the rate announcement for any additional clues over future policy, as well as the Fed's latest estimates for the economy, including year-end projections for inflation, unemployment, and gross domestic product. BoA lifts year-end S&P 500 forecast Bank of America Global Research lifted its year-end forecast for the S&P 500 index to 4,600, from its previous estimate of 4,300, saying earlier Wednesday "old economy" stocks on the index could benefit as much, if not more, over their new-age tech peers. The S&P 500 is up over 15% so far this year, largely driven by a rally in some large growth stocks, such as Nvidia (NASDAQ:NVDA) and Meta Platforms (NASDAQ:META) that have ridden the artificial intelligence boom. Klaviyo to make debut after successful IPO In corporate news, marketing automation company Klaviyo is set to start trading on the New York Stock Exchange, after pricing its initial public offering above its indicated range. This continues the series of well received listings, including Instacart (NASDAQ:CART), which ended 12% higher in its Nasdaq debut on Tuesday, and Arm Holdings (NASDAQ:ARM). Elsewhere, quarterly earrings are scheduled from logistics giant FedEx Corporation (NYSE:FDX) after the closing bell. General Mills (NYSE:GIS) beat expectations for revenue and profit and reaffirmed guidance. Shares dipped 0.8%. Crude retreats from 10-month highs Oil prices fell Wednesday, retreating from 10-month highs, as markets digested a forecast of a large drawdown in U.S. crude inventories ahead of the Federal Reserve interest rate decision. Data from the industry body American Petroleum Institute, released on Tuesday, indicated that U.S. crude inventories fell by over five million barrels last week. The official data is due later Wednesday. Yet, despite this hefty draw, traders are taking some profit ahead of the crucial Fed decision after worries of a substantial supply deficit this year had sent prices soaring to their highest levels since November last year. (Oliver Gray contributed to this item.)

**Market Update – September 20 – FED will stay on hold; Dot Plot, SEP are key** In a day that will be centred around the Fed’s deliberations this evening, and above all the quarterly economic projections, the new dot plot and Jerome Powell’s press conference, we start with China where the PBoC just now left its benchmark rates unchanged, with the one-year and five-year loan prime rates at 3.45% and 4.2% respectively. https://analysis.hfm.com/731605/

By Stella Qiu SYDNEY (Reuters) - Asian shares fell and the dollar was firm on Monday as investors looked ahead to policy meetings from the Federal Reserve, the Bank of Japan and other central banks this week. Europe is set for a subdued open, with EUROSTOXX 50 futures off 0.1%. S&P 500 futures advanced 0.2% while Nasdaq futures edged up 0.1%. Oil prices hit fresh 10-month peaks, further stoking inflationary pressures. U.S. West Texas Intermediate crude futures gained 0.8% to $91.52, their highest level since November, while Brent crude futures rose 0.7% to $94.55 per barrel. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7%. Japan's Nikkei is closed for a public holiday. Technology shares in the region retreated, with Taiwan's TSMC, the world's top contract chipmaker, falling 3% after Reuters reported that it has told its major suppliers to delay the delivery of high-end chipmaking equipment In China, better-than-expected factory output and retail sales in the world's second largest economy have aided Chinese bluechips which were up 0.4%. But property sector woes dragged Hong Kong's Hang Seng 1% lower. Zhongrong International Trust, which has exposure to Chinese property developers, said over the weekend it was unable to make payments on some trust products on time. "Despite the encouraging sign of stabilization, the property market continues to be the missing puzzle piece in the economic picture," said Tommy Xie, head of Greater China Research at OCBC Bank. "The on-the-ground feedback indicates a rise in property viewing activities; however, most prospective buyers are not in a hurry to finalize deals due to the increasing supply of apartments post relaxation." Shares in embattled China Evergrande (HK:3333) Group fell as much as 25% after police in southern China detained some staff at its wealth management unit, though they later pared losses to be down 1.6%. This week, global central banks will take centre stage, with five of those overseeing the 10 most heavily traded currencies holding rate-setting meetings. A swathe of emerging market central banks will also hold meetings. Markets are fully priced for a second straight pause from the Fed on Wednesday, with its targeted range expected to be unchanged at 5.25% to 5.5%, so the focus will be on the updated economic and rates projections. They see about 80 basis points of cuts next year. "In theory, the FOMC meeting should be a low-volatility affair, but it is a risk that needs to be managed," said Chris Weston, head of research at Pepperstone. Weston added that if the Fed revises up its rate projections for 2024, that would see rate cuts being priced out, resulting in renewed interest in the U.S. dollar and downward pressure on global shares. On Thursday, Bank of England is tipped to hike for the 15th time and take benchmark borrowing costs to 5.5%. Bank of Japan is the key risk event on Friday. Markets are looking for any signs that the BOJ could be moving away from its ultra-loose policy faster than previously thought, after recent comments by Governor Kazuo Ueda sent yields much higher. Last Friday, Wall Street ended sharply lower as U.S. industrial labour action weighed on auto shares. Rising Treasury yields also pressured Amazon (NASDAQ:AMZN) and other megacap growth companies. Cash Treasuries were not traded in Asia with Tokyo shut. Treasury yields edged higher on Friday, with the two-year above the 5% threshold. In the currency markets, the U.S. dollar was still standing strong near its six-month top at 105.25 against a basket of major currencies. The euro gained 0.1% to $1.0667, after slumping to a 3-1/2 month low of $1.0632 last week as the European Central Bank signalled its rate hikes could be over. The price of gold was 0.2% higher at $1,928.13 per ounce.

When I moved to CA from MA after college in '77, I found a union job that paid $13.50 an hour. Overtime was double time and Sundays and Holidays were triple time. I was living in a two-bedroom apartment that cost $400 a month. Forty-five years later CA wants to increase the wage to $20.00 an hour for service workers and all the companies are pushing back. How did we get here? Sad state of affairs. I don't know if the UAW demands are fair or not but i do know corporations have been getting away with murder for far too long. Time for a change.

Ignore that this is a one minute chart, it was handy when I wanted to illustrate a point about Squats and their positioning, especially when using them in daily charts as a warning that a change in direction might be next. If the price has been moving up (or down) a squat (the BLUE bar, not a greenie) will occur in one of the five bars inside the box, IF it is outside those five, I just ignore it. That interpretation has proven over the years.

By Nathan Layne and Joseph Ax MILWAUKEE (Reuters) -Eight Republican presidential candidates traded barbs on Wednesday at their first debate of the 2024 election as they jockeyed for position behind the absent front-runner, Donald Trump, who derided the event in a pre-taped interview aimed at siphoning away viewers. The raucous two-hour debate offered a view of the deep challenges the contenders face in seeking to dislodge Trump from his perch at the top of the field. While the former president took the extraordinary step of skipping the debate entirely, his rivals were left taking shots at one another to try to emerge as the most viable alternative, five months before the first Republican presidential nominating contest in Iowa and more than 14 months before the election. While Florida Governor Ron DeSantis has consistently stood in second place in polls, albeit well behind Trump, it was Vivek Ramaswamy, the 38-year-old tech entrepreneur and political neophyte, who was at the center of many of the Fox News debate's most dramatic moments. Ramaswamy, a fierce Trump defender who is rising in national polls, faced plenty of incoming fire from his more experienced rivals, who appeared to view him as more of a threat than DeSantis. "We don't need to bring in a rookie," former Vice President Mike Pence said, while former New Jersey Governor Chris Christie accused Ramaswamy of sounding "like ChatGPT," a reference to artificial intelligence. Ramaswamy fired back by emphasizing his status as an outsider, calling everyone else on stage "bought and paid for" and accusing DeSantis of being a "super PAC puppet," a reference to independent political action committees that typically raise unlimited sums of money from corporations and individuals. He also took the most isolationist position on the Ukraine-Russia war, arguing that it was not a priority for the U.S. and saying he would end military aid to Ukraine. That drew a sharp rebuke from Nikki Haley, a former ambassador to the United Nations. The debate had been seen as a potentially pivotal moment for DeSantis, whose campaign has been riven by staff turmoil amid a slow but steady decline in the polls. Trump, who remains the clear-cut favorite among Republican voters despite his four criminal indictments, chose to skip the event in favor of a friendly interview with conservative commentator Tucker Carlson that began streaming online minutes before the debate began. The interview had about 74 million views on X, formerly known as Twitter, during its 46 minutes. Trump declined to directly answer provocative questions posed by Carlson, such as whether a civil war was coming in the United States. Instead, he stuck to well-worn themes: false claims that he won the 2020 election, a promise to tighten immigration controls and insults of President Joe Biden and some of his Republican rivals. "Do I sit there for an hour, or two hours, whatever it's going to be, and get harassed by people that shouldn't even be running for president and a network that isn't particularly friendly to me?" he asked Carlson. The debate took place a day before Trump planned to surrender in Atlanta to face charges he sought to overturn his election loss in the state. Six of the eight debaters on Wednesday raised their hands when asked whether they would support Trump as the nominee even if he had been convicted of a crime - North Dakota Governor Doug Burgum, DeSantis, Haley, Pence, Ramaswamy and U.S. Senator Tim Scott. Christie, who appeared to start raising his hand before wagging his finger, and former Arkansas Governor Asa Hutchinson declined. Both have been vocal critics of Trump's efforts to overturn his 2020 election loss. "Whether or not you believe that the criminal charges are right or wrong, the conduct is beneath the office of president of the United States," Christie said to boos from a rowdy and partisan crowd. That led to a sharp back-and-forth between Christie, Trump's biggest critic among Republican candidates, and Ramaswamy, Trump's most ardent defender. "Honest to God, your claim that Donald Trump is motivated by vengeance and grievance would be a lot more credible if your entire campaign were not based on vengeance and grievance against one man," Ramaswamy said, prompting Christie to retort, "You make me laugh." Polls show that most Republicans view the criminal charges against Trump, 77, as politically motivated, making the topic a tricky one to navigate for his rivals. In the most recent Reuters/Ipsos poll released this month, Trump held 47% of the Republican vote nationally, with DeSantis dropping six percentage points from July to 13%. None of the other candidates has broken out of single digits. 'COUNTRY IN DECLINE' The candidates also went after Biden, a Democrat, from the outset. Moderators Martha MacCallum and Bret Baier, both Fox News hosts, started the debate by asking about the U.S. economy. "Our country is in decline," DeSantis said. "We must reverse Bidenomics so that middle-class families have a chance to succeed again." While the economy has shown surprising resilience, defying recession predictions with a robust labor market, polls show many voters - including a plurality of those who supported Biden in 2020 - feel the economy has worsened during his first three years in office amid persistent inflation. The candidates were also asked about abortion, an issue that has bedeviled Republicans ever since the U.S. Supreme Court last year eliminated a nationwide right to abortion. Pence, the staunchest anti-abortion opponent in the field, criticized Haley for saying that a bipartisan consensus must be reached on a federal approach. Haley, who would be the first woman to win the Republican presidential nomination, responded that it was impractical to back nationwide limits given Democratic opposition. DeSantis, who signed a six-week ban into law in Florida, did not specify whether he would back a similar national ban, saying he understood that different states would take different stances. "Look, I understand, Wisconsin is going to do it different than Texas," he said. "But I will support the cause of life as governor and as president."

Investing.com -- Gold prices rose slightly on Tuesday, taking some relief from a weaker dollar as the greenback retreated from two-month highs, although fears of higher U.S. interest rates still kept the outlook for metal markets muted. The yellow metal saw some signs of recovery after slumping to a five-month low earlier this month. Spot prices also lost the closely-watched $2,000 an ounce level, and were still struggling to break above. Spot gold rose 0.1% to $1,896.39 an ounce, while gold futures expiring in December rose 0.1% to $1,924.90 an ounce by 00:21 ET (04:21 GMT). Treasury yields surge ahead of Jackson Hole But while gold saw some relief on Tuesday, the outlook for the yellow metal was largely dampened by a spike in U.S. Treasury yields. 10-year yields surged to an over 20-year high this week as markets positioned for potentially higher-for-longer U.S. interest rates. Focus this week is squarely on an address by Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium this Friday. The Fed Chair is expected to provide more cues on the path of monetary policy, with sticky inflation and a tight labor market potentially inviting a hawkish outlook from the central bank. Investment banks warned that Powell could flag a new era of higher baseline rates - a scenario that bodes poorly for metal markets. The prospect of rising U.S. rates battered gold in recent weeks, given that higher rates push up the opportunity cost of investing in non-yielding assets. Strength in the dollar also weighed, although the greenback fell slightly from a two-month high this week. This offered some relief to gold prices. Copper edges higher, China stimulus in focus Among industrial metals, copper prices also advanced slightly on Tuesday, benefiting from weakness in the dollar. Copper futures rose 0.2% to $3.7263 a pound. But prices of the red metal were also nursing steep losses over the past three weeks, amid growing impatience with more stimulus measures in China. The People’s Bank of China largely disappointed markets with its interest rest cut this week, drawing calls from investors for more targeted, fiscal measures to support a slowing economic recovery. China is the world’s largest copper importer, with an economic slowdown in the country this year having weighed heavily on copper prices and demand.

Investing.com -- Oil prices rose Monday, helped by another rate cut from China, the world’s largest crude importer, as well as the prospect of tighter supplies. By 09:30 ET (13:30 GMT), the U.S. crude futures traded 0.8% higher at $81.27 a barrel, while the Brent contract climbed 0.8% to $85.46. PBOC cuts rates again The People’s Bank of China cut its one-year loan prime rate by 10 basis points to 3.45% earlier Monday. While this was less than had been expected, and the five-year rate which is used to determine mortgage costs was left unchanged, this still suggests that Beijing is determined to support the second largest economy in the world as it struggles with a slowing post-COVID economic recovery. The PBOC unexpectedly cut short and medium-term lending rates last week. Supplies continue to tighten Worries over the strength of the Chinese economic recovery contributed to the losses last week when benchmark oil prices snapped a 7-week winning streak last week to post a weekly loss of 2%. That said, prices are still over 5% higher in the last month following the announcement of deep output cuts by Saudi Arabia and Russia, the two largest producers in the OPEC+ grouping. These producers said that recent cuts will extend until at least the end of September -- a scenario that is expected to limit crude supplies by nearly 70 million barrels over 45 days. Adding to this, the latest rig data from Baker Hughes shows that the number of active oil rigs in the U.S. fell by 5 over the week to 520 - the lowest level since March last year. “The U.S. has lost 107 oil rigs since early December and it is not too surprising that this reduced drilling activity means that oil production growth forecasts for later this year and through 2024 are looking relatively modest,” said analysts at ING, in a note. Net long Brent positions rise These expectations of tightening supplies no doubt helped speculators decide to increase their net long positions in the ICE Brent contract by 19,748 lots to 230,735 lots, despite oil prices edging lower over the reporting period. “The move was driven by fresh longs, suggesting that some speculators took advantage of more recent price weakness to enter the market from the long side,” ING added. (Ambar Warrick contributed to this article.)

By Wayne Cole SYDNEY (Reuters) - Asian stocks stumbled on Monday after China delivered a smaller cut to lending rates than markets had counted on, continuing Beijing's run of disappointingly frugal stimulus steps. China's central bank trimmed its one-year lending rate by 10 basis points and left its five-year rate unmoved, a surprise to analysts who had expected cuts of 15 basis points to both. Disappointment at the meagre move saw Chinese blue chips ease 0.4% to the lowest in almost nine months, while the Australian dollar took a brief dip as a proxy for China risk. Investors have been hoping for a repeat of the massive fiscal spending that has juiced the economy in the past, even though Beijing seems reluctant to add to its borrowing tasks. Indeed, there was chatter in the market that the authorities skipped a cut in the five-year rate precisely because there was more significant action on the way. Sentiment was also helped by a rush of Chinese companies outlining plans for share buybacks as regulators voiced support for the moves. MSCI's broadest index of Asia-Pacific shares outside Japan still slipped 0.4% to a fresh low for the year, adding to a 3.9% dive last week. Japan's Nikkei was up 0.4%, though that follows a 3.2% drop last week. EUROSTOXX 50 futures and FTSE futures both edged up 0.1%, while S&P 500 futures and Nasdaq futures were near flat. Earnings from AI-darling Nvidia (NASDAQ:NVDA) on Wednesday will be a major test of valuations. Analysts are concerned the market has got too long, especially of tech, leaving it vulnerable to a deeper pullback. BofA's latest survey of fund managers found sentiment was the least bearish since February 2022, while cash levels were at nearly a two-year low, and 3 out of 4 surveyed expect a soft landing or no landing for the global economy. Analysts at Goldman Sachs, meanwhile, argue there is still scope for investors to add to equity positions. "The re-opening of the buy-back blackout window will provide a boost to equity demand in coming weeks although a flurry of expected equity issuance this fall may provide a partial offset," they wrote in a note. PARSING POWELL Stock valuations have been pressured in part by a sharp rise in bond yields, with the U.S. 10-year hitting 10-month highs last week at 4.328%. Early Monday, yields were up again at 4.28% and a break above 4.338% would take them to levels not seen since 2007. Markets assume Federal Reserve Chair Jerome Powell will note the jump in yields at the Jackson Hole conference this week, and the recent run of strong economic data. The Atlanta Fed's GDP Now tracker is running at a heady 5.8% for this quarter. "It's an opportunity for Powell to give an updated assessment on economic conditions, which now appear stronger than anticipated and reinforce the case for additional rate hikes," Barclays (LON:BARC) analyst Marc Giannoni said. "Even so, we would be surprised if he provided specific guidance, with key August prints for employment, CPI and retail sales all to come before the September meeting." A majority of polled analysts think the Fed is done hiking, while futures imply around a 31% chance of one more increase by December. The rise in yields has helped the dollar notch five weeks of gains and a nine-month top on the Japanese yen at 146.56. On Monday, it was trading at 145.36 with the market wary of risk of Japanese intervention. [USD/] The euro was also firm at 158.14 yen, but under pressure from the dollar at $1.0881 after losing 0.7% last week. The ascent of the dollar and yields was weighing on gold at $1,891 an ounce, having touched a five-month low last week. [GOL/] Oil prices edged higher on Monday, having snapped a seven-week winning streak as concerns about Chinese demand offset tight supplies. [O/R] Brent was up 52 cents at $85.32 a barrel, while U.S. crude bounced 62 cents to $81.87 per barrel. Prices for liquefied natural gas (LNG) were underpinned by the risk of a strike at Australian offshore facilities that could affect around 10% of global supply.

Investing.com -- Gold prices rose slightly on Friday, recovering from a five-month low as the dollar saw some profit taking, although concerns over higher U.S. interest rates kept metal markets under pressure. Prices were set for a fourth straight week of losses, as strong labor market data and hawkish signals from the Federal Reserve kept markets positioning for higher U.S. interest rates. Spot prices also lost the key $1,900 an ounce level this week, which could herald more near-term weakness for the yellow metal. Spot gold rose 0.2% to $1,893.05 an ounce, while gold futures expiring in December rose 0.4% to $1,922.15 an ounce by 00:00 ET (04:00 GMT). Both instruments were set to lose over 1% this week. Dollar dip offers some relief to gold, but outlook dim The dollar fell 0.3% in Asian trade amid some profit taking, after the greenback raced to over two-month highs against a basket of currencies. The dollar was also set for a 0.5% gain this week, as strong U.S. economic readings and hawkish signals from the minutes of the Fed’s July meeting pushed up bets that U.S. rates will remain higher for longer. While the Fed has flagged only one more hike this year, the prospect of higher-for-longer U.S. rates bodes poorly for gold markets, given that it pushes up the opportunity cost of holding non-yielding assets. This trade had battered gold through 2022, and has so far limited any major gains in the yellow metal this year. Anticipation of more monetary policy and economic cues from the Jackson Hole Symposium next week also kept positioning skewed largely towards the dollar, and kept investors wary of metal markets. Gold was also pressured by a spike in U.S. Treasury yields, with the 10-year rate surging to levels last seen during the 2008 financial crisis. Copper buoyed by China stimulus hopes, but weekly losses on tap Copper prices rose on Friday, taking some support from signals of more stimulus support in China. Copper futures rose 0.2% to $3.6932 a pound. But futures were still set to lose about 0.7% this week. Prices of the red metal rebounded from an over two-month low on Thursday, after China’s central bank vowed to release more liquidity to support a slowing economic recovery. The People’s Bank is now widely expected to cut its loan prime rates on Monday, as the world’s largest copper importer struggles with a slowing post-COVID economic recovery.

Investing.com -- U.S. stocks wobbled early on Monday as investors anticipate earnings reports from major retailers and retail sales data for July that could shed more light on the health of the American consumer. At 11:21 ET (15:21 GMT), the Dow Jones Industrial Average was down 7 points or less than 0.1%, while the S&P 500 was up 0.3% and the NASDAQ Composite was up 0.5%. The main equities indices have had a tricky start to August, with the broad-based S&P 500 and the tech-heavy Nasdaq Composite both falling last week, the Nasdaq’s first two-week losing streak of the year. The blue-chip Dow Jones Industrial Average, however, posted small gains last week, its fourth positive week in five. Fed minutes to offer monetary policy clues Inflation data at the end of last week came in a touch stronger than expected, causing Treasury yields to rise as investors factored in the possibility of the Federal Reserve continuing to tighten monetary policy in September. However, this is not the prevailing wisdom, with Goldman Sachs speaking for many when it expects the central bank to pause in September and then declare in November that a moderation in inflation means that a final hike would be "unnecessary." The influential investment bank then sees the Fed starting to cut interest rates again by the end of next June, rolling out gradual reductions in borrowing costs every quarter after that month. The Fed releases the minutes from its July policy meeting on Wednesday, which should help investors gauge the appetite for further rate increases ahead of its annual get-together in Jackson Hole, Wyoming at the end of the month. Major retailers set to release earnings Ahead of this, Tuesday sees the release of the retail sales for July, a gauge into the health of consumer spending as investors await quarterly earnings from a number of the country’s big retailers. Home Depot (NYSE:HD) is due to release results on Tuesday, Target (NYSE:TGT) on Wednesday and Walmart (NYSE:WMT) on Thursday. The second quarter earnings season is winding down with S&P 500 results presenting a mixed picture - companies are beating analysts' profit expectations at the highest rate in nearly two years even as revenue beats dropped to the lowest since early 2020. Tesla cuts prices in China Elsewhere, Tesla (NASDAQ:TSLA) has cut prices in China for two of its Model Y model, as the electric car maker attempts to combat increased competition and entice customers wary of making big purchases in an uncertain economy. Tesla shares fell 1.8%. Sales of Tesla cars made in China dropped by 31% month-on-month in July, the first decline since December. Crude retreats as dollar rises Oil prices retreated Monday, as concerns about China’s faltering economic recovery as well as a stronger dollar prompted profit-taking after seven weeks of gains on tightening supply from OPEC+ output cuts. Friday’s U.S. producer price index release saw the dollar climb to a five-week high, which hurts demand for crude as it makes the commodity more expensive for international buyers. (Peter Nurse and Oliver Gray contributed to this item.)

By Bansari Mayur Kamdar and Johann M Cherian (Reuters) - The S&P 500 and the Nasdaq edged lower on Wednesday as investors assessed mixed earnings from Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) ahead of a Federal Reserve rate hike that could push borrowing costs to their highest since the global financial crisis. Microsoft eased 3.3% after laying out an aggressive spending plan to meet demand for its new artificial intelligence (AI)-powered services. The Windows maker still surpassed estimates for quarterly revenue and profit. On the other hand, Alphabet gained 6.7% after the Google parent's second-quarter profit exceeded Wall Street expectations on steady demand for its cloud services and a rebound in advertising. Five of the main S&P 500 sectors declined, with tech stocks leading losses, while communication services housing Alphabet gained 2.9% in early trading. "Artificial intelligence has really taken the front of the stage from last quarter's earning season," said Peter Andersen, founder of Andersen Capital Management. "But I believe some companies have gotten a little bit ahead of themselves and are overpromising what artificial intelligence can do for their companies in such a short time span." Meta Platforms (O:META) rose 1.3% after Alibaba (NYSE:BABA)'s cloud unit said it would support the Facebook owner's open-source AI model, Llama. Meta is also expected to report quarterly results after the bell. The Fed is expected to deliver a 25-basis point interest rate hike later in the day, though there is less clarity over what the central bank will do at its subsequent meetings. "The key question is what comes next. The dot plot still shows room for another 25bp hike this year, but recent inflation figures don't signal urgency," said Stefan Koopman, senior macro strategist at Rabobank. At 9:48 a.m. ET, the Dow Jones Industrial Average was up 9.99 points, or 0.03%, at 35,448.06, the S&P 500 was down 5.08 points, or 0.11%, at 4,562.38, and the Nasdaq Composite was down 22.51 points, or 0.16%, at 14,122.04. The Dow see-sawed and was last marginally higher, underpinned by a 5.8% gain in Boeing (NYSE:BA) after the planemaker posted a smaller-than-expected quarterly loss, along with a surge in cash flows. Snap (NYSE:SNAP) sank 19.6% after the photo messaging app owner gave a weaker-than-expected third-quarter forecast as it struggles to compete with tech giants for advertising dollars. Thermo Fisher Scientific (NYSE:TMO) shed 2.2% as the medical equipment maker cut its annual profit forecast, while Union Pacific (NYSE:UNP) gained 11.2% after the railroad operator appointed Jim Vena as chief executive to succeed Lance Fritz. Wells Fargo (NYSE:WFC) climbed 2.2% after the bank's board authorized a new share buyback program of up to $30 billion. Advancing issues outnumbered decliners by a 1.72-to-1 ratio on the NYSE and by a 1.63-to-1 ratio on the Nasdaq. The S&P index recorded 18 new 52-week highs and no new lows, while the Nasdaq recorded 42 new highs and 37 new lows.

By Shadia Nasralla LONDON (Reuters) -Oil prices were steady on Tuesday, hovering near three-month highs as signs of tighter supplies and pledges by Chinese authorities to shore up the world's second-biggest economy lifted sentiment, while weaker Western economic data weighed. Brent futures were down 9 cents, or 0.1%, at $82.65 a barrel by 1340 GMT, while U.S. West Texas Intermediate (WTI) crude dipped 7 cents, or 0.1%, to $78.67. The crude benchmarks have already chalked up four weekly gains in a row, with supplies expected to tighten due to output cuts from the Organization of the Petroleum Exporting Countries (OPEC) and allies. Earlier-loading Brent contracts are selling above later loadings, a price structure known as backwardation indicating traders see tight supply, with the six-month spread near a two-and-a-half month high. "On the supply side, whilst remote for now, risks are growing following Russia’s escalation and bombing of Ukrainian port infrastructure along the Danube River," ING said in a note saying attacks on grains assets could spill into energy markets. "The market is starting to become a little nervous over a potential supply disruption." In China, the world's second-biggest oil consumer, leaders pledged to step up economic policy support. In the euro zone, business activity shrank more than expected in July, a survey showed. In the United States, business activity slowed to a five-month low in July, a closely watched survey showed, but falling input prices and slower hiring indicate the Federal Reserve could be making progress on its bid to reduce inflation. Markets anticipate 25-basis-point rate hikes from both the Fed and the European Central Bank this week. U.S. industry data on inventories is expected at around 2030 GMT. Four analysts polled by Reuters estimated on average that crude inventories fell by about 2 million barrels in the week to July 21. [EIA/S] Sending a bearish signal, a 110,000 barrel-per-day unit at the huge U.S. refinery in Baton Rouge will be shut for up to four weeks, sources said.

By Katie Paul NEW YORK (Reuters) -With Twitter already on the ropes, Meta's Mark Zuckerberg delivered another blow to Elon Musk on Wednesday, ramping up the tech billionaires' rivalry with the launch of Instagram's much-anticipated companion service Threads, a challenger to Twitter. "Let's do this. Welcome to Threads," Zuckerberg wrote in his first post on the app, along with a fire emoji. He said the app logged 5 million sign-ups in its first four hours. Much like Twitter, the app features short text posts that users can like, re-post and reply to, although it does not include any direct message capabilities. Posts can be up to 500 characters long and include links, photos and videos up to five minutes long, according to a Meta blog post. It is available in more than 100 countries on both Apple (NASDAQ:AAPL)'s App Store and Google (NASDAQ:GOOGL)'s Play Store, the blog post said. Analysts said investors were salivating over the possibility that Threads' ties to Instagram might give it a built-in user base and advertising apparatus. That could siphon ad dollars from Twitter at a time when the microblogging company's new CEO is trying to revive its struggling business. While Threads launched as a standalone app, users can log in using their Instagram credentials and follow the same accounts, potentially making it an easy addition to existing habits for Instagram's more than 2 billion monthly active users. "Investors can't help but be a little excited about the prospect that Meta really has a 'Twitter-Killer'," said Danni Hewson, head of financial analysis at investment firm AJ Bell. Meta stock closed up 3% on Wednesday ahead of the launch, outpacing gains by competitor tech companies as the broader market edged down. Threads' arrival comes after Zuckerberg and Musk have traded barbs for months and even threatened to fight each other in a real-life mixed martial arts cage match in Las Vegas. The timing is opportune for Meta to land a blow, as months of Musk's chaotic decision-making has roiled Twitter. Musk bought Twitter for $44 billion last October, but its value has since plummeted as it faced an exodus of advertisers amid deep staffing cuts and content moderation controversies. Its latest move involved limiting the number of tweets users can read per day. Zuckerberg, in subsequent Threads posts, addressed those challenges. "I think there should be a public conversations app with 1 billion+ people on it. Twitter has had the opportunity to do this but hasn't nailed it. Hopefully we will," he wrote. The integration with Instagram included several nods to privacy considerations. Instagram users who sign up for Threads automatically have a badge affixed to their Instagram profile, but can opt to hide it. They also are given options to choose different privacy settings for each app. Brands like Billboard, HBO, NPR and Netflix (NASDAQ:NFLX) had accounts set up within minutes of launch, as did celebrities like Shakira and other well-known personalities such as former Meta Chief Operating Officer Sheryl Sandberg. The app did not appear to show any ads, according to a Reuters review. To build up Threads, Meta has been making overtures to social media influencers to attract them to the new app and encouraging them to post at least twice a day, said Ryan Detert, CEO of influencer marketing company Influential. Some thanked the company for early access in their initial posts. The app also benefits from the failure of other would-be Twitter competitors to take advantage of the service's stumbles. While a number of burgeoning competitors such as Mastodon, Post, Truth Social and T2 have tried to lure Twitter users away, all remain relatively small so far. Bluesky, a new service backed by Twitter cofounder Jack Dorsey, launched its invite-only beta in February and initially had users clamoring to get access codes. Its website said it had 50,000 users as of April. Dorsey also backed another platform called Nostr. But history is working against Meta. It has suffered multiple failures launching standalone copycat apps in the past, most notably its Lasso app aimed at competing with short video rival TikTok. The company later incorporated a short video tool, Reels, directly into Instagram and more recently wound down its unit tasked with designing experimental apps as part of a cost-cutting drive. Another potential strike against Threads is that the news-oriented culture on Twitter differs from that on Instagram, a more visual platform, said Jasmine Enberg, principal analyst at Insider Intelligence. That cuts against Meta's goal in recent years of moving away from news and political content and instead recommending lighter fare in Reels videos. The company has downplayed the importance of news content on its platforms in regulatory battles over proposals to compel payment to journalistic publishers. Still, said Enberg, Meta only needs to convince a quarter of Instagram's users to join Threads in order to rival Twitter's size. "The reality is that Meta doesn't need to convert Twitter power users into Threads users" to succeed, she said. Zuckerberg, responding to a user who predicted Twitter's demise about an hour after the Threads launch, cautioned patience. "We're only in the opening moments of the first round here," he said.

By Bansari Mayur Kamdar and Johann M Cherian (Reuters) - Wall Street's main indexes slipped on Wednesday as investors awaited minutes of the Federal Reserve's June meeting for clues on the central bank's monetary policy path, while Sino-U.S. tensions and weak economic data from Beijing dented sentiment. Investors are focused on the Fed minutes, expected to be released around 2 p.m. ET, as they resume trading after the July 4 Independence Day holiday. Bets for a 25-basis-point rate hike in July stood at 83%, while traders have priced in a 32% chance the U.S. central bank would deliver another hike by October, according to Refinitiv data. [IRPR] "There is going to be a little bit of dissension among the ranks and the overall tone will be let's see how this plays out," said Robert Pavlik, senior portfolio manager at Dakota Wealth. "Stocks have accounted for another 25 basis point rate hike when the Fed meets later this month, but a lot of people are divided on whether or not there's going to be another rate hike (after July)." Nine of the 11 major S&P 500 sectors fell in early trading with material shares leading declines, down 1.7%, while financials lost 0.9%. Traders also await U.S. factory orders data, due at 10 a.m. ET, to gauge the impact of higher rates on the economy after a survey showed on Monday manufacturing slumped in June. More economic data, including the non-farm payrolls report on Friday, is scheduled for release later this week. Chip stocks such as Nvidia (NASDAQ:NVDA) and Micron Technology (NASDAQ:MU) fell 0.7% and 1.0%, respectively, after China said it would control exports of some metals widely used in the semiconductor industry as tensions between Beijing and Washington rise over access to high-tech microchips. The Philadelphia SE Semiconductor Index lost 0.9%. Shares of Wolfspeed gained 12.8% after the company signed a 10-year silicon carbide wafer supply agreement with Renesas Electronics Corp. U.S. main indexes kicked off the third quarter with slim gains in a holiday-shortened session on Monday, led by Tesla (NASDAQ:TSLA) after the electric-vehicle company posted record second-quarter deliveries. At 9:48 a.m. ET, the Dow Jones Industrial Average was down 147.62 points, or 0.43%, at 34,270.85, the S&P 500 was down 11.10 points, or 0.25%, at 4,444.49, and the Nasdaq Composite was down 6.07 points, or 0.04%, at 13,810.71. China's June services activity expanded at the slowest pace in five months, raising concerns about global economic recovery, a private-sector survey showed. Among other movers, Netflix (NASDAQ:NFLX) gained 1.8% as Goldman Sachs (NYSE:GS) raised its rating and price target. United Parcel Service (NYSE:UPS) slid 2.1% after the Teamsters Union and the postal service operator accused each other of walking away from negotiations. Moderna (NASDAQ:MRNA) rose 4.4% after the drugmaker signed an agreement to work towards opportunities to research, develop and manufacture mRNA medicines in China. Declining issues outnumbered advancers by a 3.73-to-1 ratio on the NYSE and a 2.24-to-1 ratio on the Nasdaq. The S&P index recorded 6 new 52-week highs and one new low, while the Nasdaq recorded 23 new highs and 21 new lows.

Investing.com -- U.S. futures edged lower on Wednesday as investors awaited comments from Federal Reserve Chair Jerome Powell, while tech stocks were pressured lower amid reports that Washington is considering new curbs on chip exports to China. At 06.56 ET (10:56 GMT), the Dow futures contract inched up 10 points, while S&P 500 futures dipped 7 points or 0.1%, and Nasdaq 100 futures were down 65 points or 0.4%. The losses came after Wall Street rebounded on Tuesday, with the tech-heavy Nasdaq Composite leading the way, rising 1.6%. The blue-chip Dow Jones Industrial Average snapped a six-day losing streak while the S&P 500 rose after falling in five of the last six sessions. Powell comments Market sentiment remained subdued ahead of a panel discussion at the European Central Bank’s annual forum in Sintra, Portugal. The panel, which is set to begin at 9:30 ET (13:30 GMT) includes Powell, as well as ECB President Christine Lagarde, Bank of England head Andrew Bailey, and Bank of Japan Governor Kazuo Ueda. Powell’s comments are expected to underline expectations for additional rate hikes this year. Data on Tuesday indicated that the U.S. economy remained on a solid footing despite fears over the prospect of a recession, but also indicated that the Fed will likely have to keep hiking. New orders for key U.S.-manufactured capital goods unexpectedly rose in May, and sales of new single-family homes surged last month, while U.S. consumer confidence rose to an almost one-and-a-half-year high in June. Investors have narrowed the odds on a July rate hike - traders are now pricing in a roughly 77% chance the Fed will raise interest rates by 25 basis points to the 5.25%-5.50% range, up from 74.4% a day earlier. Chip wars Worries over renewed Sino-U.S. trade tensions also weighed after The Wall Street Journal reported that Washington is weighing new restrictions on exports of artificial intelligence chips to China. Shares in Nvidia (NASDAQ:NVDA), which gets around a fifth of its revenue from China, were down 3.5% ahead of the open, while shares in rival chipmakers Advanced Micro Devices (NASDAQ:AMD) and Micron (NASDAQ:MU) were also lower. The Commerce Department will stop the shipments of chips made by Nvidia and other chip companies to customers in China as early as July, the WSJ report said. Bank stress tests Meanwhile, the U.S. Fed is due to release the results of its annual bank health checks after markets close. The country's largest lenders, particularly JPMorgan (NYSE:JPM), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), and Morgan Stanley (NYSE:MS) are closely watched by investors.

By Howard Schneider WASHINGTON (Reuters) - The Federal Reserve's fight to lower inflation back to its 2% target "has a long way to go," Federal Reserve Chair Jerome Powell said on Wednesday in testimony prepared for delivery to the House Financial Services Committee. "Inflation has moderated somewhat since the middle of last year," with the Fed's preferred measure of inflation falling substantially from a peak around 7% last year to 4.4% as of April. But recent progress has been slow. "Inflation pressures continue to run high, and the process of getting inflation back down to 2% has a long way to go," Powell said, noting that even as the Fed held off raising interest rates at the Federal Open Market Committee meeting last week "nearly all" participants expect further rate increases will be appropriate by the end of the year. Investors broadly expect increases to resume at the Fed's July meeting, though financial market indicators reflect doubts that the Fed will deliver more increases beyond that meeting. "My colleagues and I understand the hardship that high inflation is causing, and we remain strongly committed to bringing inflation back down to our 2% goal," Powell was set to tell the House committee, where Republicans hold the majority. The hearing, the first of two Capitol Hill appearances this week as part of his twice-yearly reports to federal lawmakers, is set to begin at 10 a.m. (1400 GMT). Powell will appear before the Senate Banking Committee on Thursday. Powell laid out the contours of a debate that has policymakers weighing the continued strength of the U.S. labor market and ongoing "modest" economic growth against the fact that the full impact of rapid Fed rate increases likely has not been felt on the economy as a whole. "We have been seeing the effects of our policy tightening on demand in the most interest-rate–sensitive sectors of the economy" such as housing, Powell said. "It will take time, however, for the full effects of monetary restraint to be realized, especially on inflation," Powell said, a fact that has made it increasingly difficult for officials to judge if they have raised interest rates high enough yet to reach their inflation goal, or need to restrain the economy further. Stress in the banking sector is also creating "headwinds" for households and businesses, the effect of which remains uncertain, Powell said. Given that situation, and the rapid five percentage points of rate hikes the Fed has approved since March of 2022, the decision not to raise rates last week was taken as a "prudent" step that would "allow the Committee to assess additional information and its implications for monetary policy," Powell said.

Investing.com -- Most Asian stocks retreated on Wednesday as caution kicked in ahead of a testimony by Federal Reserve Chair Jerome Powell, while investors also awaited more stimulus measures in China after an underwhelming rate cut. Powell is set to testify before Congress later in the day, potentially offering more cues on the path of U.S. interest rates after somewhat mixed signals from a Fed meeting last week. An unexpected rise in U.S. housing activity also pushed up some expectations that the Fed will have enough headroom to maintain a hawkish stance. Chinese stocks slide as rate cut disappoints China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 0.6% and 0.4%, respectively, as a cut in the country’s benchmark loan prime rate (LPR) failed to impress markets. The People’s Bank of China cut both its one-year and five-year LPR by 10 basis points on Tuesday, disappointing some traders hoping for a bigger cut in the five-year rate, which determines mortgage prices. But analysts expect Beijing to roll out more stimulus measures in the coming months to help shore up a slowing economic recovery. Still, Chinese markets took little support from this notion, declining steadily ahead of market holidays on Thursday and Friday. Hong Kong’s Hang Seng index was the worst performer in Asia for the day, down 2% to a two-week low as heavyweight technology stocks sank the most on fears of rising U.S. interest rates. Alibaba Group (NYSE:BABA) (HK:9988) sank over 3% even after the firm appointed a new CEO, as it moves towards spinning off and listing its biggest sectors. Other technology-heavy bourses also retreated, with South Korea’s KOSPI down 0.6%, while the Taiwan Weighted index shed 0.2%. Concerns over China spilled over into Australian markets, with the ASX 200 down 0.3%. Japan among few gainers as BOJ doves prevail Japan’s Nikkei 225 index added 0.3%, while the broader TOPIX rose 0.4%. Both indexes traded close to their highest levels in 33 years, buoyed largely by the prospect of monetary policy remaining accommodative in the country. The minutes of the Bank of Japan’s April meeting showed that nine out of 10 members of the board had no intention of altering its ultra-loose policy in the near-term, and even the outlier suggested the bank wait before considering a change. A dovish BOJ has been among the biggest factors behind a Japanese stock rally this year, as monetary conditions in the rest of the globe tightened further. Japan’s economy has also remained fairly resilient despite increased global headwinds.

By Sruthi Shankar and Shristi Achar A (Reuters) - Wall Street's main indexes slipped on Tuesday as investors assessed odds of an interest rate pause by the Federal Reserve at its policy meeting next week, with mixed economic data adding to uncertainty around the rate path. The U.S. services sector barely grew in May as new orders slowed, data on Monday showed, pushing a measure of prices paid by businesses for inputs to a three-year low. While that signaled the Fed's monetary tightening was cooling the world's largest economy, it followed strong monthly jobs data last week, clouding the outlook for the Fed's policy. "The difference between skip and pause and it's impact on the next meeting is what investors are kind of wrestling with," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest. "The market is on pause now until we get to the Fed meeting and the inflation data." Inflation data due next week is expected to show consumer prices cooled slightly on a month-over-month basis in May but core prices are expected to have remained elevated. Some Fed officials last week backed the view that the central bank could keep rates steady at its June 13-14 meeting and look for more signs of whether the economy was cooling or higher rates were warranted. The Fed officials have entered a "blackout" period. Fed fund futures indicate traders have priced in a 75% chance that the central bank will hold interest rates in the 5%-5.25% range, according to CMEGroup's Fedwatch tool. However, they see 50% odds of another 25-basis-point rate hike in July. At 9:59 a.m. ET, the Dow Jones Industrial Average was down 64.72 points, or 0.19%, at 33,498.14, the S&P 500 was down 5.06 points, or 0.12%, at 4,268.73, and the Nasdaq Composite was down 23.61 points, or 0.18%, at 13,205.82. U.S. stocks have advanced in recent weeks, with a rally in megacap stocks, a stronger-than-expected earnings season and hopes of a pause in interest rate hikes pushing the benchmark S&P 500 and the tech-heavy Nasdaq to fresh 2023 highs on Friday. Among the 11 major S&P sectors, technology and energy fell the most, while financials rose. Coinbase (NASDAQ:COIN) Global plunged 15.2% after the U.S. Securities and Exchange Commission sued the crypto exchange, accusing it of illegally operating without having first registered with the regulator. Apple Inc (NASDAQ:AAPL) extended losses to drop 1.0%, a day after the iPhone maker unveiled a costly augmented-reality headset called the Vision Pro, barging into a market dominated by Meta. Advanced Micro Devices (NASDAQ:AMD) rose 3.6% after Piper Sandler raised the price target on the stock to $150, the second highest on Wall Street, as per Refintiv data. Oil stocks fell, with Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) dropping about 1% each as crude prices declined nearly 2% on concerns about the global economy. [O/R] Advancing issues outnumbered decliners by a 1.50-to-1 ratio on the NYSE and by a 1.24-to-1 ratio on the Nasdaq. The S&P index recorded five new 52-week highs and four new lows, while the Nasdaq recorded 32 new highs and 38 new lows.

By Arathy Somasekhar and Andrew Hayley BEIJING (Reuters) -Oil prices rose on Thursday, reversing earlier losses, as a potential pause in U.S. interest rate hikes and the debt ceiling bill passing a crucial vote renewed optimism about further fuel demand growth in the world's biggest oil consumer. Brent crude futures for August rose 32 cents, or 0.44% to $72.92 a barrel by 0518 GMT, while U.S. West Texas Intermediate crude (WTI) rose 25 cents, or 0.37%, to $68.34 a barrel. U.S. Federal Reserve officials on Wednesday pointed towards a potential rate hike "skip" in June that reversed market expectations of an imminent hike that could slow economic growth and weaken oil demand. Additionally, the U.S. House of Representative's passage of a bill suspending the U.S. government's $31.4 trillion debt ceiling improved the chances of averting a disastrous government default. Both benchmarks had fallen steeply in the previous sessions, with Brent down 5.6% and WTI dropping 6.3% as of the close on Wednesday, from last Friday. "Oil markets may have been oversold in the last two trading days due to the sluggish Chinese data and debt ceiling concerns. Sentiment rebounded amid the debt bill’s passage in the House, and (the) Fed’s rate hike pause signal also offered a rebounding opportunity," said Tina Teng, a markets analyst at CMC Markets in Auckland. Demand indications from China, the world's biggest oil importer, are somewhat mixed this week. Official government data on Wednesday reported factory activity contracted in May to the lowest in five months, while service sector activity expanded at the slowest pace in four months. However, the Caixin/S&P Global China manufacturing purchasing managers' index (PMI) on Thursday showed a rise to 50.9 in May from 49.5 in April, tempering concerns about Chinese industrial demand. Prices are also struggling to overcome bearish supply side factors. {{8849|U.S. crcrude oil inventories rose by about 5.2 million barrels last week, according to market sources citing American Petroleum Institute (API) figures on Wednesday. Gasoline inventories also posted a build of about 1.9 million barrels last week, while distillate fuel inventories gained by 1.8 million barrels, according to the API data. Market participants are awaiting government data on U.S. crude stocks due later on Thursday. The data was delayed by a day because of a U.S. holiday earlier this week. [EIA/S] Investors were also watching the upcoming June 4 meeting of OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, after mixed signals so far on whether further cuts are likely. Analysts at HSBC and Goldman Sachs (NYSE:GS) have said they do not expect OPEC+ to announce further cuts at this meeting.

Investing.com -- Most Asian stocks retreated on Tuesday as optimism over a deal to raise the U.S. debt ceiling was offset by fears of worsening ties between Beijing and Washington, amid renewed sparring between the two over trade and political sanctions. Chinese stocks were the worst performers for the day, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes falling 0.8% and 0.7%, respectively. The blue-chip CSI 300 traded at a five-month low after China declined a request for a meeting between U.S. defense secretary Lloyd Austin and Chinese defense minister Li Shangfu at a forum in Singapore later this week. The move comes as relations between the two countries stew at their worst level in decades, after the shooting down of an alleged Chinese spy balloon over U.S. airspace earlier this year. China recently blocked local sales of U.S. chipmaker Micron Technology Inc (NASDAQ:MU), an apparent response to strict curbs on semiconductor sales to certain Chinese entities placed by the U.S. and its allies earlier this year. Worsening ties between the two countries also come amid waning optimism over a Chinese economic recovery this year, with focus now chiefly on manufacturing and service sector activity readings for May, due on Wednesday. Chinese stocks have largely unwound all gains made on optimism over a post-COVID reopening, and are now trading negative for the year, following a string of weak readings for April. Losses in Chinese stocks spilled over into Hong Kong’s Hang Seng index, which slid 0.8% to a six-month low. Broader Asian markets moved in a flat-to-low range as optimism over raising the U.S. debt ceiling ran out of steam. Even with lowered chances of a U.S. default, markets remained on edge over a potential recession in the country this year, which could greatly limit capital flows into regional markets. Australia’s ASX 200 index was flat, while Philippine shares led losses in Southeast Asia with a 0.7% drop. Some markets, such as Japan’s Nikkei 225 and the TOPIX, also saw a measure of profit taking after racing to 33-year highs on Monday. The two indexes fell 0.4% and 0.6%, respectively. Singapore-traded futures for India’s Nifty 50 index pointed to a flat open. South Korea’s KOSPI was the sole outlier, rising 0.8% in catch-up trade and as major chipmaking stocks, particularly SK Hynix Inc (KS:000660), benefited from a brighter outlook on demand, thanks to artificial intelligence development. Focus this week is also on more U.S. economic cues, particularly nonfarm payrolls data on Friday.

By Stella Qiu SYDNEY (Reuters) - Asian shares and Wall Street futures rose on Monday as a weekend deal by U.S. President Joe Biden and House Speaker Kevin McCarthy to suspend the government's debt ceiling provided relief for investors although China worries capped sentiment. Europe is set to open slightly higher, with pan-regional Euro Stoxx 50 futures up 0.2%. S&P 500 futures rose 0.3% while Nasdaq futures firmed 0.5%. After weeks of negotiations, congressional Republican McCarthy and Biden agreed on Saturday to avert an economically destabilising default by suspending the $31.4 trillion debt ceiling until 2025. The deal now has to clear a narrowly divided Congress before the United States runs out of money to pay its debts in early June. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2%, with falls in Chinese and Hong Kong shares offsetting gains seen elsewhere. Elsewhere, Tokyo's Nikkei surged 1.0% to a fresh 33-year high and Australia's resources heavy shares gained 1.0%. "There may be an initial sliver of relief that may send yields a tad lower along with some U.S. dollar bump-up, alongside equities. But the vagaries of pushing the deal through Congress may hold back (the optimism)," said Vishnu Varathan, head of economics at Mizuho Bank in Singapore. "And beyond that, the overriding implications on liquidity squeeze from issuances to bolster cash that is running very low at the Treasury may perversely elevate yields and dampen equities. The dollar, though, may be bid." Defying the bullish trend, China's bluechips lost 0.6% and Hong Kong's Hang Seng index dropped 0.8%, after weak profit data for China's industrial firms added to signs of flagging momentum in the world's second-biggest economy. Cash U.S. Treasuries were untraded in Asia on Monday, owing to the Memorial Day holiday, while futures were broadly steady. Two-year yields hit a 2-1/2 month high of 4.6390% on Friday on market bets of higher Federal Reserve rates for longer. U.S. shares rallied at the end of last week on hopes of a debt ceiling deal and bets on artificial intelligence firms. The Dow Jones Industrial Average ended a five-day losing streak on Friday, while the Nasdaq Composite Index and S&P 500 closed at their highest levels since August 2022. "We always thought there was going to be a resolution, and now we have got that, so that removes some of the uncertainty for markets. But when we get past that, when the votes get passed and when we come back from Memorial Day, the question becomes what next?" said Tony Sycamore, market analyst at IG. "Yes, we will get the relief rally in the short-term but then we have to start thinking about the June FOMC meeting, about inflation being stickier than expected, and the money being drained out of the markets." The Fed's preferred inflation gauge - the personal consumption expenditures (PCE) price index - came in stronger than expected on Friday. Taken together with strong U.S. consumer spending, markets are now leaning towards a quarter-point hike from the Fed next month and see rates staying there for the rest of the year.. In the week ahead, U.S. job openings and non-farm payrolls data could influence the Fed's thinking for the June decision. Economists polled by Reuters expect payrolls likely rose 195,000 in May, slowing from 253,000 the prior month. In Turkey, the lira hovered at 20.05 against the dollar, just a touch above its record low of 20.06 hit on Friday, after President Tayyip Erdogan secured victory in the country's presidential election, extending his increasingly authoritarian rule into a third decade. Elsewhere in the currency markets, the dollar index - a measure of the greenback against its major peers - was a touch lower at 104.17 as risk-sensitive currencies staged a rebound. However, it is still close to a two-month high hit on Friday. Oil prices rallied early Monday. Brent crude futures climbed 0.8% to $77.47 a barrel, while U.S. West Texas Intermediate crude was at $73.25 a barrel, also up 0.8%. Gold prices were little changed at $1,945.93 per ounce.

By Rae Wee SINGAPORE (Reuters) - The dollar touched a six-month high against the yen on Tuesday as expectations grew that U.S. rates will remain higher for longer and as the debt ceiling impasse kept risk sentiment fragile. Among a slew of Federal Reserve heavyweights who spoke on Monday, some hinted that the central bank still has more to go in tightening monetary policy. Minneapolis Fed President Neel Kashkari said that U.S. rates may have to go "north of 6%" for inflation to return to the Fed's 2% target, while St. Louis Fed President James Bullard said the central bank may still need to raise another half-point this year. Against the Japanese yen, the greenback rose to a near six-month peak of 138.88 in Asia trade, reflecting the stark contrast between a still-hawkish Fed and an ultra-dovish Bank of Japan. The dollar was last 0.11% lower at 138.44 yen. "Markets are pricing for higher rates for longer by the Fed," said Tina Teng, market analyst at CMC Markets. "U.S. inflation is still way above the target ... and near-term, the economy is running resilient. "I don't think the Fed will just start cutting rates anytime soon." Money markets are pricing in a roughly 20% chance that the Fed will deliver another 25-basis-point hike next month and have scaled back expectations of Fed rate cuts later this year, with rates seen holding above 4.7% by December. Similarly, the greenback kept the offshore yuan pinned near its recent five-month low and it last bought 7.0586. China on Monday kept its benchmark lending rates unchanged, as a weakening yuan and widening yield differentials with the United States limited the scope for any substantial monetary easing to shore up the country's post-COVID economic recovery. The euro slipped 0.05% to $1.0808 and is down nearly 2% for the month thus far against a stronger dollar, reversing two straight months of gains. Sterling was largely unchanged at $1.2436. Flash PMI figures in the euro zone, the UK and the United States are due later on Tuesday, following Japan's PMI release earlier in the day. Japan's manufacturing activity expanded for the first time in seven months in May, while the service sector hit record growth, as the post-COVID recovery shored up business conditions. 'X-DATE' LOOMS Also on investors' minds were concerns over a looming debt ceiling deadline in the United States, which put a lid on risk sentiment and supported the safe-haven U.S. dollar. President Joe Biden and House Speaker Kevin McCarthy ended discussions on Monday with no agreement on how to raise the U.S. government's $31.4 trillion debt ceiling and will keep talking with just 10 days before a possible default. "The debt ceiling drama has reached a fever pitch in recent weeks," said economists at Wells Fargo (NYSE:WFC). "The policy disagreements among lawmakers appear wide as we enter crunch time." Short-end U.S. Treasury yields have jumped, reflecting market jitters, with the yield on the one-month Treasury bill last up more than 10 bps at 5.7580%. Yields rise when bond prices fall. The yield on the two-month Treasury bill rose to a roughly three-week high of 5.4690%. Against a basket of currencies, the U.S. dollar steadied at 103.25, not far from a roughly two-month high hit last week. The Aussie slipped 0.02% to $0.6651, while the kiwi gained 0.02% to $0.62865.

S&P 500 (SPX) rallied 1.6% last week to hit the 100 weekly moving average (WMA) for the first time since last August. The benchmark U.S. stock market index also printed the highest level (4212.91) in 9 months. Dow Jones Industrial Average (DJI) added only 0.4% as it struggles to clear the 100-WMA. The index had previously recorded two consecutive red weekly candles. Tech-focused Nasdaq Composite Index (IXIC) rose as much as 3% in the best week since March. The index now trades at its highest levels since August 2022. Looking forward to this week, the key economic data releases this week in the U.S. are the core PCE, durable goods, and the University of Michigan reports on Friday. Moreover, the FOMC meeting minutes are out on Wednesday, while several Fed officials are also due to speak this week, including governor Waller and presidents Bullard, Bostic, Daly, Logan, and Collins. Over the weekend, Minneapolis Fed President Neel Kashkari said that he could take a wait-and-see approach at the central bank's next meeting in June. Q1 earnings ‘much better than feared’ With 95% of S&P 500 companies having reported actual results, the Q1 earnings season is close to completion. According to FactSet, 78% of S&P 500 companies have reported a positive EPS surprise and 76% of S&P 500 companies have reported a positive revenue surprise. The S&P 500 earnings are down 2.2%, with Goldman Sachs analysts saying the earnings so far have been “much better than feared.” “We view these results as broadly consistent with our forecast of a moderate growth drag from tighter bank credit (-0.4pp on 2023 GDP growth, Q4/Q4 basis). Bank credit has clearly deteriorated for some businesses, but the financial effects so far appear meaningfully larger than the economic effects, in the aggregate,” the analysts said in a client note. Some of the most important earnings releases for this week include Zoom Video Communications (NASDAQ:ZM), Lowe’s (NYSE:LOW), Palo Alto Networks (NASDAQ:PANW), Nvidia (NASDAQ:NVDA), Costco (NASDAQ:COST), and Best Buy (NYSE:BBY). Debt ceiling talks continue The debt ceiling talks are set to continue today with U.S. President Joe Biden and House Republican Speaker Kevin McCarthy due to meet to discuss the deal. Rep. McCarthy said yesterday that he had a "productive" call with Biden. Investors are focused on the progress as a failure to lift the debt ceiling would trigger a default. The Treasury officials said the U.S. has money to finance its commitments until “early June.” Goldman Sachs economists forecast that cash reserves could drop below critical $30B by June 8-9. “The most likely [scenario] is a full-fledged deal that suspends the debt limit to early 2025 along with spending caps (70% chance). There is a small chance this could be announced over the weekend (10%) but we think a deal is more likely later next week (30%) or shortly before the deadline (30%),” the economists said. The bank’s strategists also see the markets pricing more risk before a potential rally takes place if the deal is finally reached. On the other hand, Morgan Stanley analysts argue that the “bigger risk for markets now is that raising the debt ceiling could decrease market liquidity based on the sizeable Treasury issuance we expect over the six months after it passes.” What analysts are saying Here’s what sell-side analysts are saying about U.S. stocks. BTIG analysts: “We think the move last week was part of a last gasp blow-off in the Nasdaq. While there was a modest expansion of new highs last week, we will reiterate what we said last week that the weak parts of the market really need to start working or the risk is everything falls together. We saw a bit of the latter on Friday within the consumer space having one of its worst days of the year.” Morgan Stanley analysts: “We believe this rally will prove to be a head fake like last summer’s. In the very short term, we would not be surprised to see further marginal upside for the major averages if a debt ceiling deal is passed. However, we would view that as a false breakout/bull trap. In that event, the short-term upside could take us back toward the August highs at most, in our view, but should then quickly reverse.” BofA analysts: “We raise our S&P 500 2023 year-end target from 4000 to 4300 based on five indicators yielding a range from 3900 (Fair Value) to 4600 (Sentiment). We believe investors should ignore the snapshot multiple this target implies – a 21x multiple on 2023 EPS of $200E (tracking $210 after 1Q’s beat). 21x is elevated, but trough multiples have been higher (23x at COVID, 28x at GFC) and snapshot multiples are not particularly predictive. We use a multiple on normalized earnings in our framework, and even here find that this metric is strongly predictive but only over a long time horizon.” Sevens Report Research analysts: “Not-as-bad-as-feared events have largely fueled the YTD rally and that can continue, especially if the S&P 500 can sustainably breakout to new highs because that will create more “chasing.” But “not as bad as feared” cannot support a sustainable rally (one that lasts for quarters). Point being, the “pain trade is higher,” but at this point it’s long in the tooth. And while it’s not over, it can’t push the S&P 500 sustainably into the mid 4000’s (the valuation will get too stretched).” Oppenheimer analysts: “We believe underlying trend improvement following last year’s bear cycle supports a breakout in the S&P 500. High-beta cyclicals, under pressure since February, are also finding their footing, in our view. We see this potential for a beta bounce as the likely driver for a breakout.” Barclays analysts: “We would caution against an overly bullish interpretation (e.g., the rest of the market is cheap) as equities are still exposed to earnings risk and we see few upside catalysts, leaving risk/reward skewed asymmetrically to the downside. A range-bound market is more likely, in our view. That being said, we expect narrow leadership and greater dispersion among stock returns to create selective opportunities, and recommend seeking high-quality names at less demanding multiples.”

By Stella Qiu SYDNEY (Reuters) - Asian stocks rose on a rally in regional chip shares on Monday after China banned some purchases from Micron Technology (NASDAQ:MU), while Wall Street futures struggled as U.S. debt ceiling negotiations approached crunch time after stalling last week. Europe is set to extend the caution, with pan-regional Euro Stoxx 50 futures pointing to a flat open. S&P 500 futures were also little changed while Nasdaq futures were up 0.1%. U.S. President Joe Biden and House Republican Speaker Kevin McCarthy will meet to discuss the debt ceiling on Monday, less than two weeks before the June 1 deadline after which Treasury expects the federal government will struggle to pay its debts. A failure to lift the debt ceiling would trigger a default, likely sparking chaos in financial markets and a spike in interest rates. MSCI's broadest index of Asia-Pacific shares outside Japan was last up 0.5%. Japan's Nikkei rose 0.8% to fresh 33-year highs, South Korea's KOSPI gained 0.7% and Hang Kong's Hang Seng index surged 1.3%. Sentiment was also buoyed by President Biden's remarks that he expected a thaw in frosty relations with China "very shortly". Beijing on Sunday barred U.S. firm Micron from selling memory chips to key domestic industries over security concerns, a move that helped stocks of Micron's rivals in China and elsewhere, which are seen benefiting as mainland firms seek memory products from other sources. Elsewhere, market jitters about the upcoming U.S. debt ceiling talks continued. "In the art of brinkmanship, it feels that to get a deal we must see greater market volatility," said Chris Weston, head of research at Pepperstone. "While for much of last week the headlines were that a deal is within reach, the breakdown in talks from Republican negotiators on Friday has many thinking that we could be pushed right to the June deadline before we see an agreement." Jonathan Pingle, U.S. chief economist at UBS, views the Japanese yen and gold as best placed to benefit from a U.S. default. "Only a 1-month long impasse post the X-date is likely to cause a tightening of financing conditions sharp enough that it causes the dollar to rally strongly," said Pingle. On Friday, reports that debt ceiling negotiations had reached an impasse rattled markets even as Federal Reserve Chairman Jerome Powell said U.S. interest rates might not need to rise as much given the tighter credit conditions from the banking crisis. Futures are pricing in an about a 90% chance that the Fed would keep rates unchanged at its next meeting in June, and a total of almost 50 basis points of cuts by the end of the year. That has knocked the dollar off a two-month top against a basket of major peers and was last at 103.05 on Monday, flat for the day. Meanwhile, regional U.S. bank shares continued to fall on Friday, as Treasury Secretary Janet Yellen reportedly warned that more mergers may be necessary after a series of bank failures. In Asia, China kept its key lending rates unchanged on Monday even as an ongoing economic recovery disappointed. Traders are also digesting the implications of the Group of Seven's "de-risk, not decouple" approach to China and supply chains flagged at the group's summit on Sunday. Beijing has summoned the Japanese ambassador to register protests over "hype around China-related issues" at the summit. Later in the week, the Fed will release minutes of the May meeting on Wednesday, while U.S. personal consumption expenditures (PCE) inflation data is due out on Friday. In the Treasuries market, debt ceiling concerns have created large distortions in the short-end of the yield curve as investors avoid bills that come due when the Treasury is at risk of running out of funds. The yield on the 1-month Treasury bill jumped 15 basis points to 5.6677% on Monday. Two-year yields were five basis points lower to 4.2387%, pulling away from a recent two-month high, while the 10-year yield also dipped four bps to 3.6536%. Oil prices took a hit. U.S. crude futures were down 0.9% to $70.94 per barrel, while Brent crude futures fell 0.8% to $75.01 per barrel. Gold prices were largely unchanged at $1,976.19 per ounce.

Really, all Johnny Five and I have been doing and the Giz is giving you guys Day Trade system updates. I'm out of Chris Day Trades and doing it on my own.

By Gertrude Chavez-Dreyfuss NEW YORK (Reuters) - The dollar rose to fresh seven-week peaks on Thursday after another round of solid economic data further pared back bets on easing by the Federal Reserve and amid market optimism about U.S. debt ceiling deal to avert a potential default. Thursday's reports showed lower-than-expected U.S. initial jobless claims of 242,000 in the latest week, compared with forecasts of 254,000. Another piece of data indicated a milder-than-expected fall in a business index to -10.4 from the Philadelphia Federal Reserve. Markets were forecasting contraction of -19.8. The dollar index touched a new seven-week high of 103.38, and was last up 0.5% at 103.34 after the economic numbers. Against the yen, the dollar rose to a fresh five-month peak of 138.39 after the data and was last up 0.5% at 138.35. Traders are pricing in around a 20% chance that the Federal Reserve raises its interest rate at its June meeting. Around a month ago, markets were pricing in around a 20% chance of a cut. The rate traders have priced for the Fed's December meeting stands at 4.525%, implying around 55 basis points of easing by year-end, down around 5 basis points from the day before. The focus was also on debt ceiling talks. President Joe Biden and top U.S. congressional Republican Kevin McCarthy on Wednesday underscored their determination to strike a deal soon to raise the government's $31.4 trillion debt ceiling, having agreed a day earlier to negotiate directly after a months-long standoff. ======================================================== Currency bid prices at 9:00AM (1300 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 103.3300 102.8900 +0.44% -0.155% +103.3800 +102.7900 Euro/Dollar $1.0790 $1.0839 -0.44% +0.70% +$1.0848 +$1.0786 Dollar/Yen 138.2950 137.7050 +0.42% +5.48% +138.3900 +137.2850 Euro/Yen 149.21 149.22 -0.01% +6.36% +149.3100 +148.7800 Dollar/Swiss 0.9019 0.8986 +0.38% -2.45% +0.9022 +0.8982 Sterling/Dollar $1.2421 $1.2487 -0.52% +2.72% +$1.2493 +$1.2415 Dollar/Canadian 1.3484 1.3456 +0.20% -0.49% +1.3485 +1.3457 Aussie/Dollar $0.6620 $0.6659 -0.56% -2.85% +$0.6668 +$0.6621 Euro/Swiss 0.9731 0.9739 -0.08% -1.64% +0.9745 +0.9726 Euro/Sterling 0.8684 0.8680 +0.05% -1.82% +0.8701 +0.8679 NZ $0.6221 $0.6248 -0.40% -1.99% +$0.6269 +$0.6221 Dollar/Dollar Dollar/Norway 10.8930 10.7630 +1.28% +11.08% +10.9000 +10.8030 Euro/Norway 11.7461 11.6749 +0.61% +11.93% +11.7590 +11.6680 Dollar/Sweden 10.5467 10.4458 +0.51% +1.33% +10.5493 +10.4405 Euro/Sweden 11.3808 11.3227 +0.51% +2.03% +11.3812 +11.3210

By Kevin Buckland TOKYO (Reuters) - The U.S. dollar remained under pressure on Tuesday, weighed down by the risk of a U.S. default as a standoff between Democrats and Republicans over raising the debt ceiling showed few signs of being resolved. The Aussie dollar flipped from early small gains to a loss after economic data from key trading partner China fell short of analysts' forecasts, adding to evidence of a sputtering COVID recovery. The yuan sank toward a two-month low. The U.S. dollar index - which measures the currency against a basket of six major peers - was little changed at 102.47. Overnight, it retreated from a five-week high to lose 0.26%. The dollar had been buoyed last week by both safe-haven demand amid weak Chinese economic data and by a surprise jump in U.S. consumer inflation expectations, putting the risk of a June Federal Reserve rate rise back in play. This week, though, the looming borrowing limit - which Treasury Secretary Janet Yellen reiterated could be hit as soon as June 1 - has forced its way to the front of investors' minds. President Joe Biden expressed confidence a deal could be done in time ahead of an expected meeting with congressional leaders later on Tuesday. However, Republican House of Representatives Speaker Kevin McCarthy said the two sides were still far apart. "There's been a bit of complacency in the fact that the market is generally thinking that something will get done, but if you don't prepare for the worst, there could be a lot of pain," said Bart Wakabayashi, a branch manager at State Street (NYSE:STT) in Tokyo. "The interesting thing is the dollar is weak, and usually when there's risk off, people buy the dollar," he said. "So there's a big breakdown in correlation, and when correlations don't work, people don't know what to do." The euro, which has the greatest weight in the dollar index, was little changed at $1.0870 on Tuesday, after bouncing off a five-week low overnight. Sterling slipped 0.13% to $1.2515, following a 0.67% rally from Monday. The yen, which had been hit by a wider spread between U.S. and Japanese long-term yields, pulled itself off a nearly two-week low. The dollar lost 0.08% to 135.975 yen after rising to 136.32 on Monday. The 10-year Treasury yield eased to around 3.49% in Tokyo from as high as 3.511% overnight. The Australian dollar, which is not part of the dollar index, erased small early gains ahead of Chinese retail sales and industrial production data, then sank after the release. It was last down 0.33% at $0.6678. "The Aussie's upside looks to have been capped for some time by investor concerns over China's outlook," said Sean Callow, a senior FX strategist at Westpac. "Today's data will set the Aussie back on its heels," he added, predicting the currency could ease to around 0.6645, the lower limit of its recent trading range. The dollar gained 0.2% to 6.9723 yuan in the offshore market, after touching 6.9749 on Monday for the first time since March 10.

U.S. FIVE-YEAR CREDIT DEFAULT SWAPS RISE TO 60 BPS, ACCORDING TO S&P GLOBAL MARKET INTELLIGENCE, HIGHEST SINCE 2011

By Peter Nurse Investing.com - European stock markets are expected to open in a subdued manner Monday, with investors cautious at the start of a week that includes key regional economic releases as well big tech earnings on Wall Street. At 02:00 ET (06:00 GMT), the DAX futures contract in Germany traded 0.3% lower, CAC 40 futures in France dropped 0.4% and the FTSE 100 futures contract in the U.K. fell 0.3%. The earnings season kicks into top gear this week, with the tech giants Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:META) all due to report. This will be a key test for markets with investors on the lookout to see if strong gains in the tech sector so far this year are justified. Some big-name European banks are due to report earnings in the coming week, including UBS (SIX:UBSG), Deutsche Bank (ETR:DBKGn), Santander (BME:SAN) and Barclays (LON:BARC). The results are coming after what was a very turbulent first quarter for banks following the collapse of two regional U.S. lenders last month. Additionally, Credit Suisse (SIX:CSGN) said on Monday it had CHF 61 billion ($68 billion) in net asset outflows in the first quarter, adding that outflows were continuing even in the wake of the lender’s acquisition by rival UBS. Engineering giant Philips (AS:PHG) posted a wider loss in the first quarter after booking a $630 million provision as part of a planned settlement in the U.S. over the recall of millions of devices that treat sleep apnea. On the economic data front, the Eurozone is set to release advance data on first quarter GDP on Friday, while April inflation reports from the region’s largest economies Germany, France and Spain are due out the same day. The European Central Bank is widely expected to lift interest rates again in early May, with most analysts expecting a 25-basis point hike, although a larger increase has not been ruled out with inflation proving to be persistent. Monday sees the widely-watched German Ifo business climate index, with is expected to show a slight improvement in corporate confidence in the Eurozone’s largest economy. Oil prices slumped Monday, trading close to a five-week low on concerns that rising interest rates will result in slowing economic growth, particularly in the U.S. economy, the largest consumer of crude in the world. By 02:00 ET, U.S. crude futures traded 1.4% lower at $76.78 a barrel, while the Brent contract dropped 1.3% to $80.37. Crude markets saw their first weekly loss in five weeks last week, with prices once again close to falling below the $80 a barrel level. Additionally, gold futures fell 0.1% to $1,989.55/oz, while EUR/USD traded 0.1% lower at 1.0977.

By Joe Skipper and Steve Gorman BOCA CHICA, Texas (Reuters) -Elon Musk's SpaceX called off the highly anticipated debut launch of its newly combined Starship cruise vessel and Super Heavy rocket in the final minutes of countdown due to a frozen valve, delaying the uncrewed test flight for at least two days. The two-stage rocketship, standing taller than the Statue of Liberty at 394 feet (120 m) high, was originally slated for blast-off from the SpaceX "Starbase" facility at Boca Chica, Texas, during a two-hour launch window that began at 8 a.m. EDT (1200 GMT). But the California-based company announced in a live webcast that it was scrubbing the planned 90-minute flight into space for a minimum of 48 hours, citing a frozen pressurization valve in the lower-stage rocket booster. That would make Wednesday the next available launch window for the mission. SpaceX later said on Twitter that its teams were "working towards Thursday, April 20" for a second launch attempt. The tweet set off a flurry of jokes on the social media platform making reference to 4/20 as a date widely associated with cannabis culture, and to the notoriety Musk gained in 2018 for smoking marijuana during an appearance on a live web show. Musk, who purchased Twitter last year for $44 billion, is the founder, CEO and chief engineer of SpaceX. He also is chief executive of electric carmaker Tesla (NASDAQ:TSLA), Inc. Getting the Starship to space for the first time would represent a key milestone in SpaceX's ambition of sending humans back to the moon and ultimately to Mars - at least initially as part of NASA's newly inaugurated human spaceflight program, Artemis. A successful debut flight would also instantly rank the Starship system as the most powerful launch vehicle on Earth. Both the lower-stage Super Heavy booster and the upper-stage Starship cruise vessel it would carry to space are designed as reusable components, capable of flying back to Earth for soft landings - a maneuver that has become routine for SpaceX's smaller Falcon 9 rocket. But neither stage would be recovered for the expendable first test flight to space. Instead, both parts of the spacecraft would end their inaugural flight with crash landings at sea - the upper-stage of the Starship coming down in the Pacific after achieving nearly one full orbit of the Earth. Prototypes of the Starship cruise vessel have made five sub-space flights up to 6 miles (10 km) above Earth in recent years, but the Super Heavy booster has never left the ground. In February, SpaceX did a test-firing of the booster, igniting 31 of its 33 Raptor engines for roughly 10 seconds with the rocket bolted in place vertically atop a platform. The Federal Aviation Administration just last Friday granted a license for what would be the first test flight of the fully stacked rocket system, clearing a final regulatory hurdle for the long-awaited launch. If all goes as planned for the next launch bid, all 33 Raptor engines will ignite simultaneously to loft the Starship on a flight most of the way around the Earth before it re-enters the atmosphere and free-falls into the Pacific at supersonic speed, about 60 miles (97 km) off the coast of the northern Hawaiian islands. After separating from the Starship, the Super Heavy booster is expected to execute the beginnings of a controlled return flight before plunging into the Gulf of Mexico. As designed, the Starship rocket is nearly two times more powerful than NASA's own Space Launch System (SLS), which made its debut uncrewed flight to orbit in November, sending a NASA cruise vessel called Orion on a 10-day voyage around the moon and back.

By Noah Browning LONDON (Reuters) -Oil prices rose on Tuesday with support from a weaker dollar and hopes that the Federal Reserve might ease up on its policy tightening after a key U.S. inflation report this week, though concerns remain over Chinese demand . Brent crude futures rose 65 cents, or 0.8%, to $84.83 a barrel by 1405 GMT. U.S. West Texas Intermediate futures rose 92 cents, or 1.2%, to $80.66 a barrel. Both benchmarks gained nearly $1 in earlier trading. The dollar weakened on hopes that the U.S. Federal Reserve is getting closer to ending its cycle of interest rate hikes, making dollar-priced oil cheaper for buyers holding other currencies. A U.S. inflation report to be released on Wednesday is expected to help investors to gauge the near-term trajectory for interest rates. "The short-term crude demand outlook will soon be clearer. This week we will find out if the U.S. economy is taking steps into the recession pool or if it is going to do a cannon ball into it," said Edward Moya, senior analyst at OANDA. "Wall Street should have a strong handle on the trajectory of the economy after it gets a pivotal inflation report." Data from China, however, showed consumer inflation in March rose at its slowest pace since September 2021, suggesting demand weakness persists in an uneven economic recovery. "China's March CPI is lower than expected, which may promote the Chinese government to further stimulate the economy," said Tina Teng, an analyst at CMC Markets. Oil futures have climbed more than 5% since the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia surprised the market last week with further cuts to production targets from May. In France, the restart of the last of the four domestic refineries shuttered by a month-long strike signalled a likely boost to demand for oil. On the U.S. supply front, industry data on U.S. crude stockpiles is due on Tuesday. The average estimate from five analysts polled by Reuters was that crude inventories fell by about 1.3 million barrels in the week to April 7. Oil rises in choppy trading with U.S. and China inflation in focus

By Sudarshan Varadhan CHENNAI (Reuters) -Oil prices rose on Tuesday on expectations of potential economic stimulus by China, healthy demand in the rest of Asia and a drop in U.S. crude stockpiles. Brent crude futures rose 64 cents, or 0.8%, to $84.82 a barrel at 0557 GMT, while U.S. West Texas Intermediate futures gained 67 cents, or 0.8%, to $80.41 a barrel. Data from China showed that consumer inflation in March hit the slowest pace since September 2021, suggesting demand weakness persists amid an uneven economic recovery, which spurred expectations Beijing may take steps to boost growth. "China's March CPI is lower than expected, which may promote the Chinese government to further stimulate the economy," said Tina Teng, an analyst at CMC Markets. Crude futures also climbed as the dollar eased on expectations that the U.S. Federal Reserve is getting closer to ending its rate hike cycle. A weaker greenback makes oil cheaper for those holding other currencies. "With more central banks pausing rate hikes, such as the Reserve Bank of Australia, Bank of Korea ... the expectation for the Fed to further scale back its tightening policy has been strengthened," Teng said. Signs of strong fuel demand in India, the world's third-biggest oil consumer, in March also supported prices. Last month, fuel consumption jumped by 5% from a year earlier to a record 4.83 million barrels per day. Oil futures have climbed more than 5% since the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia surprised the market last week with a new round of production cuts starting in May. On the U.S. supply front, industry data on U.S. crude stockpiles is due on Tuesday. Five analysts polled by Reuters estimated on average that crude inventories fell by about 1.3 million barrels in the week to April 7. A U.S. inflation report to be released on Wednesday could help investors gauge the near-term trajectory for interest rates.

Five planets and the moon aligning in the sky tonight, thirty minutes after sunset. Might be interesting trading tomorrow. Hope the cosmic alignment is bullish...

By Shubham Batra and Amruta Khandekar (Reuters) - The S&P 500 index slipped on Tuesday after a three-day rally fueled by support measures for the banking sector and a deal for Silicon Valley Bank assets. Bank shares rebounded sharply on Monday after First Citizens BancShares Inc said it would acquire the deposits and loans of Silicon Valley Bank, whose collapse earlier this month sparked a selloff in the sector. Shares of First Citizens climbed 3.5% after surging more than 50% on Monday. The KBW regional banking index slipped 0.1%, while the big U.S. banks including JP Morgan Chase (NYSE:JPM) & Co, Bank of America (NYSE:BAC) and Citigroup (NYSE:C) were up marginally. "The fact that we've got answers on Silicon Valley Bank, Signature Bank (NASDAQ:SBNY) and Credit Suisse means that we have more answers than questions," said Art Hogan, chief market strategist at B Riley Wealth in Boston. "But there are still enough unknowns that the market hasn't really declared an all-clear signal yet." Lawmakers are expected to put U.S. bank regulators on the defensive over the unexpected failures of regional lenders Silicon Valley Bank and Signature Bank when they testify before Congress later on Tuesday. Top regulatory officials for the Federal Reserve, Federal Deposit Insurance Corporation (FDIC) and Treasury Department will testify before congressional committees. Money market bets are now split between the Fed raising interest rates by 25 basis points and a pause in its policy meeting in May, after being largely tilted towards a no-hike scenario at the end of last week, according to CME's Fedwatch tool. Investors expect a sharp easing in rates thereafter. The Conference Board will release consumer confidence data later in the day, which is expected to show business conditions deteriorated marginally last month, making a case for a softer Fed policy stance. The S&P 500 and Dow rose on Monday after the SVB deal was announced, while the Nasdaq Composite closed lower, led by a decline in technology-related stocks. Microsoft Corp (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) Inc, Apple Inc (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) Inc continued to remain under pressure, falling in the range of 0.6% and 2.5%. At 9:43 a.m. ET, the Dow Jones Industrial Average was up 28.40 points, or 0.09%, at 32,460.48, the S&P 500 was down 8.01 points, or 0.20%, at 3,969.52, and the Nasdaq Composite was down 77.11 points, or 0.66%, at 11,691.73. Alibaba (NYSE:BABA) Group Holding jumped 7.2% after the firm said it plans to split its business into six main units covering e-commerce, media and the cloud. Shares of Lyft Inc (NASDAQ:LYFT) were up 6.7% after the ride-hailing firm hired former Amazon.com (NASDAQ:AMZN) executive David Risher as its new chief. Walgreens Boots Alliance (NASDAQ:WBA) Inc added 2.6% after the U.S. pharmacy's quarterly profit beat Wall Street expectations. Advancing issues outnumbered decliners by a 1.26-to-1 ratio on the NYSE, while decliners outnumbered advancers by a 1.15-to-1 ratio on the Nasdaq. The S&P index recorded five new 52-week highs and no new low, while the Nasdaq recorded 13 new highs and 40 new lows.

By Xie Yu HONG KONG (Reuters) - Global stocks rose and the dollar softened on Tuesday, as a deal backed by the U.S. regulator for First Citizens BancShares to buy failed Silicon Valley Bank soothed wider worries about problems in the sector. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.6% by early afternoon Hong Kong time. U.S. stock futures, the S&P 500 e-minis, rose 0.1%. Australian shares jumped around 1%, as lithium and commodity stocks rallied sharply after battery metals explorer Liontown Resources rejected a $3.7 billion buyout bid from Albemarle (NYSE:ALB) Corp. Top U.S. banking regulators said on Monday they planned to tell Congress that the overall financial system remains on solid footing after recent bank failures, but will comprehensively review their policies in a bid to prevent future collapses. As fears eased, so did demand for the safest assets with the U.S. dollar index - which gauges the currency against six peers - off 0.14% to 102.6 during Asian trading, extending Monday's 0.35% drop. Asian currencies broadly firmed, with the Malaysian ringgit hitting a five-week high. The concerns, however, haven't completely gone away as Federal Reserve Governor Philip Jefferson said on Monday that stress among small banks could hit small businesses hardest. "This round of uncertainty that we're seeing, it will likely continue for some more time," said Manishi Raychaudhuri, Asia-Pacific head of equity research at BNP Paribas (OTC:BNPQY). "We haven't seen the end of it." He expects continued volatility for global markets going forward for at least one or two quarters. In addition to concerns about any contagion caused by developed market banking woes, markets have also been jostled by wild shifts in expectations about what central banks in the United States and Europe might do next, Raychaudhuri said. "On one day, the market expects maybe a 25 basis points or maybe a 50 basis points rate hike. Just in a matter of one or two days, that outlook is changed to 50 basis points rate cuts in the second half of the year," he said. In China, the benchmark was almost flat, while the Hong Kong benchmark added 0.5%, as the re-emergence of Alibaba (NYSE:BABA) founder Jack Ma on Monday helped to quell some concerns of its private sector after a bruising two-year regulatory crackdown. "Ma's return to business would be a strongly positive sign for China’s tech industry," said Brock Silvers, chief investment officer at private equity firm Kaiyuan Capital. "But the reason behind Ma’s reappearance isn't yet clear... Market watchers will quickly deduce whether Ma's visit was a one-off event or perhaps something more," he said. In early European trade, the pan-region Euro Stoxx 50 futures rose 0.32% and German DAX futures and FTSE futures both added around 0.3%. On Monday, the S&P 500 ended slightly higher as a deal for Silicon Valley Bank's assets helped to boost bank shares, while technology-related stocks dipped amid profit taking after a strong quarter. U.S. Treasury notes nursed some losses by Monday early afternoon. Yields rose overnight on optimism that stress in the banking sector could be contained and as the Treasury Department saw soft demand for a sale of two-year notes. Benchmark 10-year yields slipped to 3.5129%, down from its U.S. close of 3.528% on Monday. Two-year yields slipped to 3.9324%. They are higher than the six-month low of 3.555% hit on Friday but well below the almost 16-year high of 5.084% hit on March 8. By Tuesday afternoon, oil prices softened with U.S. crude dipping 0.08% to $72.75 a barrel. Brent crude fell to $77.79 per barrel. Overnight, oil prices rose more than $3 on Monday as a halt to some exports from Iraq's Kurdistan region added to worries about oil supplies while a U.S. banking acquisition eased worries that financial turmoil could hurt the economy and curtail fuel demand. Gold was slightly higher. Spot gold was traded at $1,958.13 per ounce.

$DG (-1.6% pre) Dollar General Delivers Mixed Results, Poor Profit Outlook. Blame Interest Rates. http://ooc.bz/l/123609 $MOMO (-4.8% pre) Hello Group Inc. Announces Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2022 http://ooc.bz/l/123611 $JBL (+0.6% pre) Jabil stock gains after profit, revenue rise above expectations and full-year outlook is above forecasts http://ooc.bz/l/123613 $BEKE (+5.8% pre) KE Holdings Inc. Announces Fourth Quarter and Fiscal Year 2022 Unaudited Financial Results http://ooc.bz/l/123615 $SIG (+3.7% pre) Signet tops earnings estimates for Q4 and offers upbeat guidance http://ooc.bz/l/123619 $TITN (-9.1% pre) Titan Machinery Inc. Announces Results for Fiscal Fourth Quarter and Full Year Ended January 31, 2023 http://ooc.bz/l/123621 $ADBE (+5.5% pre) Adobe lifts profit forecast for fiscal 2023 and beats estimates on quarterly results http://ooc.bz/l/123623 $BRCC (+0.3% pre) BRC Inc. Reports Fourth Quarter and Full Year 2022 Financial Results http://ooc.bz/l/123625 $HLTH (-5.5% pre) Cue Health Reports Fourth Quarter and Full-Year 2022 Financial Results http://ooc.bz/l/123627 $FIVE (-3.1% pre) Five Below Stock Falls On Guidance; Dollar General Mixed On Revenue http://ooc.bz/l/123629 $FLNT (-17.5% pre) Fluent Announces Fourth Quarter and Full-Year 2022 Financial Results http://ooc.bz/l/123631 $GRWG (-10.3% pre) GrowGeneration Reports Fourth Quarter and Full Year 2022 Financial Results; Provides First Quarter and Full Year 2023 Guidance http://ooc.bz/l/123633 $ISPO (+2.0% pre) Inspirato Announces 2022 Results, CFO Succession Plan and Provides 2023 Guidance http://ooc.bz/l/123635 $LPSN (-46.8% pre) LivePerson stock plummets after surprise loss and revenue decline, as Medicare suspending reimbursements pending review http://ooc.bz/l/123622 $MGNX (+2.5% pre) MacroGenics (MGNX) Surpasses Q4 Earnings Estimates http://ooc.bz/l/123637 $PD (+5.2% pre) PagerDuty (PD) Surpasses Q4 Earnings and Revenue Estimates http://ooc.bz/l/123639 $PANL (+0.8% pre) Pangaea Logistics Solutions Ltd. Reports Record Financial Results for the Three Months and Year Ended December 31, 2022 http://ooc.bz/l/123641 $TBLT (-16.7% pre) Toughbuilt Industries Announces Fourth Quarter and Full Year 2022 Results http://ooc.bz/l/123643 $PATH (+15.4% pre) UiPath (PATH) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates http://ooc.bz/l/123645 $ZDGE (+8.8% pre) Zedge Announces Second Quarter Fiscal 2023 Results http://ooc.bz/l/123647 $ZTO (+2.7% pre) ZTO Express (Cayman) Inc. (ZTO) Surpasses Q4 Earnings and Revenue Estimates http://ooc.bz/l/123649

By Tom Westbrook, Saeed Azhar and Scott Murdoch (Reuters) - Credit Suisse on Thursday said it would borrow up to $54 billion from the Swiss central bank to shore up liquidity and investor confidence after a slump in its shares intensified fears about a global banking crisis. The Zurich-based bank's announcement helped reverse some of the heavy share market losses and restored confidence in wider financial markets, which were battered on Wednesday and into Asia trade on Thursday as investors fretted about potential runs on global bank deposits. In its statement, Credit Suisse said it would exercise an option to borrow from the central bank up to 50 billion Swiss francs ($54 billion). That followed assurances from Swiss authorities on Wednesday that Credit Suisse met "the capital and liquidity requirements imposed on systemically important banks" and that it could access central bank liquidity if needed. Credit Suisse is the first major global bank to be given an emergency lifeline since the 2008 financial crisis and its problems have raised serious doubts over whether central banks will be able to sustain their fight against inflation with aggressive interest rate hikes. The bank's shares surged 21% in pre-open trade in early European hours. Throughout most of the Asian day, stocks wallowed in the red as investors rushed to gold, bonds and the dollar. While Credit Suisse's announcement helped trim some early losses, trade was volatile and sentiment fragile. "It removes an immediate risk. But it confronts us with another choice. The more we do this, the more we blunt monetary policy, the more we have to live with higher inflation -- and what is it going to be?" said Damien Boey, chief equity strategist at Barrenjoey in Sydney. "Do bailouts make things better? On the one hand, you are removing a source of risk to the markets which is a clear and present danger. On the other hand we are feeding into this paradigm of monetary policy bucking within itself." Credit Suisse's borrowing will be made under the covered loan facility and a short-term liquidity facility, fully collateralised by high quality assets. It also announced offers for senior debt securities for cash of up to 3 billion francs. "This additional liquidity would support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs," the bank said. Credit Suisse Chief Executive Ulrich Koerner had earlier on Wednesday sought to reassure investors about the lender's strong liquidity. "Our capital, our liquidity basis is very, very strong," Koerner told media. "We fulfil and overshoot basically all regulatory requirements." Meanwhile, Credit Suisse bankers in Asia reached out to clients to reassure them after the latest inflow of funds. "We've been telling them to read the statements and look at the fact that we are buying 3 billion francs worth of bonds because they are so cheap," said a Hong Kong-based senior banker. "That's all we can say and try and plough on with work." The banker declined to be named as they were not authorised to speak to the media. EUROPEAN EPICENTRE The 167-year-old bank's problems have shifted the focus for investors and regulators from the United States to Europe, where Credit Suisse led a selloff in bank shares after its largest investor said it could not provide more financial assistance because of regulatory constraints. The concerns about Credit Suisse added to broader banking sector fears sparked by last week's collapse of Silicon Valley Bank (SVB) and Signature Bank (NASDAQ:SBNY), two U.S. mid-size firms. Investor focus is also on any action by central banks and other regulators elsewhere to restore confidence in the banking system. Policymakers in Australia and South Korea sought to reassure markets on Thursday that banks in their jurisdictions were well-capitalised. SVB's demise last week, followed by that of Signature Bank two days later, sent global bank stocks on a roller-coaster ride as investors feared another Lehman Brothers moment, the Wall Street giant whose failure had triggered the global financial crisis more than a decade ago. On Wednesday, Credit Suisse shares led a 7% fall in the European banking index, while five-year credit default swaps for the flagship Swiss bank hit a new record high. The investor exit for the doors raised fears of a broader threat to the financial system, and two supervisory sources told Reuters that the European Central Bank had contacted banks on its watch to quiz them about their exposures to Credit Suisse. The U.S. Treasury also said it is monitoring the situation around Credit Suisse and is in touch with global counterparts, a Treasury spokesperson said. NEXT STEPS Rapid rises in interest rates have made it harder for some businesses to pay back or service loans, increasing the chances of losses for lenders who are also worried about a recession. Traders are now betting that the Federal Reserve, which just last week was expected to accelerate its interest-rate-hike campaign in the face of persistent inflation, may be forced to hit pause and even reverse course. Bets on a large European Central Bank interest-rate hike at Thursday's meeting also evaporated quickly on growing fears about the health of Europe's banking sector. Money market pricing suggested traders now saw less than a 20% chance of a 50 basis point rate hike at the ECB meeting. For now, investors are focussed on what will happen at Credit Suisse next. "The next important step needs to come out from their CEO and display their new strategy to the public sooner than later to reassure the markets," Tareck Horchani, head of prime brokerage dealing at Maybank Securities in Singapore. "There is still the possibility they recover but the road will be very bumpy."

Earnings 3/15 aft: $ADBE $LIDR $BOXL $BRCC $HLTH $FIVE $FLNT $GRPN $GRWG $ISPO $LPSN $MGNX $PD $PANL $SENS $TBLT $PATH $ZDGE $ZTO Earnings 3/16 pre: $ACTG $AVAH $APRN $CODA $DBI $DG $EVLO $MOMO $JBL $BEKE $PRVB $RMBL $SIG $TITN $WSM

By Rae Wee and Kevin Buckland SINGAPORE (Reuters) - The yen weakened after the Bank of Japan kept stimulus settings steady on Friday, while a rise in U.S. jobless claims halted the dollar's ascent. The yen slid more than 0.6% in a knee-jerk plunge after the BOJ kept policy unchanged in Governor Haruhiko Kuroda's last policy meeting before he steps down in April. It later recouped some of those losses and was last roughly 0.4% lower at 136.66 per dollar. While the decision was expected by most market watchers, many see the days of the BOJ's bond yield curve control (YCC) as numbered, which led to some pricing in a slim chance of a policy tweak at Kuroda's last policy meeting. The dollar/yen's "sharp rebound post-decision was a reflection of the bets markets were putting up hoping for a parting surprise from outgoing Governor Kuroda," said analysts at OCBC. "We still expect BoJ to proceed with policy normalisation at some stage amid higher pressure on prices and wages." Elsewhere, the U.S. dollar unwound some of its gains from earlier in the week, though remained not too far off multi-month highs against some of its major peers. Against the dollar, the euro was last 0.05% higher at $1.0587, after having hit a two-month low on Wednesday. Sterling slipped 0.01% to $1.1926, while the kiwi fell 0.02% to $0.6101, languishing near Wednesday's more than three-month low of $0.60855. Thursday data showed that the number of Americans filing new claims for unemployment benefits had increased by the most in five months last week. That caused the greenback to pause its sharp rally as traders unwound some bets that U.S. rates would rise much higher than previously expected. Futures pricing now implies a roughly 52% chance that the Fed will raise rates by 50 basis points this month, compared with 70% before the data release. U.S. rates are meanwhile expected to peak just below 5.5% by July. Earlier in the week, the greenback surged after Fed Chair Jerome Powell struck a more hawkish tone than markets had expected at his semi-annual testimony before the Senate Banking Committee. Against a basket of currencies, the U.S. dollar index was little changed at 105.26, but remained on track for a weekly gain of roughly 0.7%. Focus now turns to the closely watched nonfarm payrolls report due later on Friday, the next major data point that could offer clues on the Fed's next steps for monetary policy. According to a Reuters survey of economists, nonfarm payrolls likely increased by 205,000 jobs in February after surging by 517,000 in January. "The payrolls report has surprised us on the high side for, I think, about 10 straight months now, so it's been a sign of real strength for the U.S. economy," said Jarrod Kerr, chief economist at Kiwibank. "It is a little frustrating for the Fed. They've obviously tightened a lot, hoping it'll have an effect. But we've seen bounce back in a lot of activities indicators in recent months. So it looks like the job's not done."

By Sruthi Shankar and Shristi Achar A (Reuters) - The S&P 500 and Dow indexes slipped in the final trading session of Februray as Treasury yields rose to multi-month highs on bets of more interest rate hikes by the Federal Reserve. Wall Street's main indexes were set for monthly declines after a strong performance at the start of the year as signs of a strong U.S. economy and elevated inflation spurred worries that the Fed will stick to its hawkish policy for longer. Five of the 11 major S&P 500 sectors were lower on Tuesday, with defensive utilities and consumer staples leading losses. Traders have started to price in the possibility of a bigger 50 basis-point rate hike in March, although the odds remain low at about 23%, according to Fed fund futures, which also suggest rates peaking at 5.41% by September, up from 4.57% now. BofA Global Research warned the Fed could even hike interest rates to nearly 6%. The yield on two-year Treasury notes, which tracks investors' expectations of the path of interest rates, rose to 4.82%, trading just below a near four-month high hit in the previous session. "We're talking about stickier inflation in the economy and higher interest rates for longer. Markets still seem to think that we're going to get rate cuts sometime in the next 12 months and the evidence just does not support that," said Michael Hewson, chief market analyst at CMC Markets. Chicago Fed President Austan Goolsbee, a voter in the rate-setting committee this year, will speak later in the day. At 9:42 a.m. ET, the Dow Jones Industrial Average was down 116.83 points, or 0.36%, at 32,772.26 and the S&P 500 was down 2.73 points, or 0.07%, at 3,979.51. The tech-heavy Nasdaq Composite, however, rose 7.40 points, or 0.06%, to 11,474.38, supported by Meta Platforms and Applied Materials (NASDAQ:AMAT). Target Corp (NYSE:TGT) rose 1.9% after the big-box retailer reported a surprise rise in holiday-quarter sales but cautioned on 2023 earnings due to an uncertain U.S. economy. Zoom Video Communications (NASDAQ:ZM) Inc climbed 2.1% after it forecast annual profit above Wall Street estimates and said it will integrate more artificial intelligence into its products. Chevron Corp (NYSE:CVX) slipped 0.1% even after the oil giant raised its annual share buyback outlook to between $10 billion and $20 billion. Advancing issues outnumbered decliners by a 1.17-to-1 ratio on the NYSE and 1.32-to-1 ratio on the Nasdaq. The S&P index recorded two new 52-week highs and seven new lows, while the Nasdaq recorded 33 new highs and 40 new lows.

By Sakura Murakami TOKYO (Reuters) -China said it was troubled by Japan's military build up and Tokyo took aim at Beijing's military ties to Russia and its suspected use of spy balloons during the Asian powers' first formal security talks in four years on Wednesday. The talks, aimed at easing tensions between the world's second- and third-largest economies, came as Tokyo worries that Beijing will resort to force to take control of Taiwan in the wake of Russia's attack on Ukraine, sparking a conflict that could embroil Japan and disrupt global trade. Japan in December said it would double defence spending over the next five years to 2% of gross domestic product - a total of $320 billion - to deter China from resorting to military action. Beijing, which increased defence spending by 7.1% last year, spends more than four times as much as Japan on its forces. Tokyo plans to acquire longer range missiles that could strike mainland China and to stock up on other munitions it would need to sustain a conflict alongside the large U.S. force it hosts. "The international security situation has undergone vast changes and we are seeing the return of unilateralism, protectionism, and a Cold War mentality," Chinese Vice Foreign Minister Sun Weidong said at the start of the meeting in Tokyo with Japanese Deputy Minister of Foreign Affairs Shigeo Yamada. China is Japan's largest trading partner, accounting for around a fifth of its exports and almost a quarter of its imports. It's also a major manufacturing base for Japanese companies. “While relations between Japan and China have a lot of possibilities, we are also facing many issues and concerns," Yamada told Sun. He pointed to their territorial dispute over uninhabited islands in the East China Sea known as the Senkaku in Japan and Diaoyu in China, Beijing's recent joint military drills with Moscow and the suspected Chinese surveillance balloons spotted over Japan at least three times since 2019. Following the downing of a suspected Chinese spy balloon by the United States, Japan last week said it planned to clarify military engagement rules to allow its jet fighters to shoot down unmanned aircraft that violate its airspace. In a statement released after the meeting, Japan's foreign ministry said it had also stressed the importance of peace and stability in the Taiwan Strait. The two countries had agreed to try and establish a direct communication hotline "around spring", and to strengthen dialogue between their senior security officials, it added.

By Ambar Warrick Investing.com -- The Australian dollar rallied to a five-month high on Wednesday after fourth-quarter consumer inflation read higher than expected, while most Asian currencies moved little as fears of a global recession offset optimism over a potential economic recovery in China. The Australian dollar jumped nearly 1% to 0.7115 against the dollar, its strongest level in over five months. Data showed that Australian CPI inflation rose more than expected in the December quarter, likely heralding more interest rate hikes by the Reserve Bank. While high inflation and rising interest rates are likely to also dent the Australian economy, higher borrowing costs also make the Australian dollar appear more attractive. The Reserve Bank had hiked rates by a cumulative 400 basis points in 2022 to curb inflation and had also defended the currency against further depreciation to the greenback. ING said in a note that the Reserve Bank of Australia will have to raise rates by at least another 50 basis points in the coming months to curb rising price pressures - a scenario that favors the Australian dollar. The Singapore dollar jumped 0.4% to a near five-year high after data showed that core consumer inflation grew more than expected in December. The trend is also expected to invite more tightening measures by the Monetary Authority of Singapore. Broader Asian currencies retreated amid increased concerns over a U.S. recession, after overnight data showed business activity shrank for a seventh straight month. But the dollar saw little safe haven demand, with the dollar index and dollar index futures moving little in Asian trade. Expectations that U.S. interest rates will rise at a slower pace saw investors pivot into gold as their preferred safe haven, while the Japanese yen also benefited in recent sessions. But most risk-driven Asian currencies saw scant bids, amid fears that slowing economic growth could dry up capital flows to the region. The Chinese yuan was largely unchanged in holiday trade, while the offshore yuan added 0.2%. The Japanese yen fell 0.2%, while Indonesian rupiah slid 0.5%. Fears of a recession largely offset optimism over a potential Chinese economic recovery. Traders are betting that the economy will be boosted by the Lunar New Year holiday, especially after it relaxed most anti-COVID restrictions and reopened its borders earlier this year.