bond

 
 

Asian shares edge higher after Fed, investors await BOJ

TOKYO, Sept 19 — Asian shares edged higher today, tracking some modest Wall Street gains after the US Federal Reserve cut interest rates as expected but offered mixed signals on the next easing, keeping investors cautious. The Treasury yield curve…


Sri Lanka's Q2 GDP growth slumps to over 5-year low as Easter attacks weigh

COLOMBO, Sept 19 — Sri Lanka's economy grew at its slowest pace in more than five years from April to June, government data showed yesterday, as the Easter Sunday bomb attacks that killed over 250 people hit the island nation's fastest-growing…


ECB weighs investigating Deutsche Bank over alleged unauthorised bond purchases, say sources

FRANKFURT, Sept 18 — The European Central Bank is examining whether to open a formal investigation into Deutsche Bank for allegedly buying some of its own securities without authorisation, two people familiar with the matter said today. The…


Futures on back foot before Fed policy decision

NEW YORK, Sept 18 — US stock index futures dipped today as investors waited for the Federal Reserve’s decision on interest rates in what has been a rocky week for global markets. The central bank is expected to lower interest rates by a quarter…


RAM names new CEO, deputy CEO

PETALING JAYA: RAM Holdings Bhd has appointed Lee Wai Kit as its new CEO and Promod Dass as deputy CEO.

The rating agency said Lee joined RAM in 1993 and most recently helmed RAM Consultancy Services Sdn Bhd until Dec 31, 2018.

“Over the last 8 years, he played a primary role in developing and executing RAM Group’s strategic direction, while overseeing key operational responsibilities including RAM’s thrust into sustainability ratings and green bond second opinions.”

Formerly the deputy CEO of RAM Ratings, Promod joined RAM in 2000 and has 23 years of experience in the financial services industry, including 18 years at RAM Ratings.

He will oversee the rebranding of RAM Consultancy to its new name of RAM Sustainability Sdn Bhd.


From oil shocks to funding strains, Fed confronts new complexities

WASHINGTON, Sept 18 — The Federal Reserve will conclude its latest policy meeting today buffeted by conflicting economic data, under steady pressure from the White House for steep interest rate cuts, and confronted as well with an unexpected jump…


Oil steps back on Saudi supply reassurance, focus shifts to Fed

TOKYO: Oil prices cooled on Wednesday as Saudi Arabia said full oil production would be restored by month’s end while caution ahead of an expected U.S. interest rate cut kept wider financial markets in tight ranges.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.13 % while Japan’s Nikkei was flat.

Wall Street shares ticked up a tad on Tuesday with the S&P 500 gaining 0.26%.

Brent crude futures dipped 0.1% to $64.50 a barrel, having conceded more than 60% of their gains made after the weekend attack on Saudi oil facilities.

U.S. West Texas Intermediate (WTI) crude lost 0.5% to $59.06 per barrel, compared to four-month peak of $68.38 marked on Monday.

Saudi Energy Minister Prince Abdulaziz bin on Tuesday Salman sought to reassure markets, saying the kingdom would restore its lost oil production by month-end having recovered supplies to customers to the levels they were prior to weekend attacks.

“I would think a spike in oil prices will likely prove to be short-term given that the global economy isn’t doing too well,” said Akira Takei, bond fund manager at Asset Management One.

Still, heightened geopolitical tensions underpinned oil as well as some safe-haven assets such as U.S. bonds.

A U.S. official told Reuters on Tuesday the United States believes the attacks originated in southwestern Iran, an assessment that could further increase the rivalry between Tehran and Riyadh.

Adding to uncertainties in the Middle East were exit polls from Israel’s election, which showed the race too close to call suggesting Prime Minister Benjamin Netanyahu’s fight for political survival could drag on.

Gold was mostly flat at $1,502.10, while the 10-year U.S. Treasuries yield fell to 1.810%, compared with Friday’s high of 1 1/2-month high of 1.908% ahead of the Fed’s policy announcement on Wednesday.

While a 25-basis point rate cut is seen as near-certain, investors look to the statement and economic projections from Fed policy makers, given signs of deep disagreements among them.

“Markets are currently almost pricing in three more rate hikes by the end of next year, including one by the end of this year, but the chances are that the Fed’s stance will be more hawkish than markets and we could see rise in bond yields in the near term,” said Masahiko Loo, portfolio manager at Alliance Bernstein.

The ongoing U.S.-China trade war has raised policymakers’ concerns about slowing factory output although resilient domestic consumption has given hawks some reasons to worry about cutting rates too hastily.

Possibly further complicating their discussion, short-term U.S. interest rates shot up this week, with overnight repo rates rising to 7%, due largely to seasonal factors such as huge payments for taxes and bond supply.

That prompted the New York Fed to conduct its first repo operation in more than a decade to inject funds to stressed money markets.

The New York Federal Reserve said late Tuesday it will conduct a repurchase agreement operation early Wednesday “in order to help maintain the federal funds rate within the target range of” 2.00% to 2.25%.

Jeffrey Gundlach, chief executive of DoubleLine Capital, said on Tuesday that the repo market squeeze makes it more likely that the Federal Reserve will resume expansion of its balance sheet “pretty soon.”

Also in focus is the Bank of Japan’s policy meeting due Thursday. While the latest Reuters poll suggests the BOJ will keep its policy on hold, 28 of 41 economists expect it will ease its policy this year and 13 believe it may surprise by taking action at the Thursday meeting.

In the currency market, the euro stood flat at $1.1066 after 0.6% gain the previous day on better-than-expected readings in Germany’s ZEW survey on investor confidence.

Sterling traded at $1.2489, down 0.05% so far on the day, having hit two-month high of $1.2528 as investors reversed their bets against the currency on fear of a no-deal Brexit at the end of next month.

The yen eased slightly to 108.26 yen, near 1 1/2-month low of 108.37 touched on Tuesday.

– Reuters


Oil steps back on Saudi supply reassurance, focus shifts to Fed

TOKYO: Oil prices cooled on Wednesday as Saudi Arabia said full oil production would be restored by month’s end while caution ahead of an expected U.S. interest rate cut kept wider financial markets in tight ranges.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.13 % while Japan’s Nikkei was flat.

Wall Street shares ticked up a tad on Tuesday with the S&P 500 gaining 0.26%.

Brent crude futures dipped 0.1% to $64.50 a barrel, having conceded more than 60% of their gains made after the weekend attack on Saudi oil facilities.

U.S. West Texas Intermediate (WTI) crude lost 0.5% to $59.06 per barrel, compared to four-month peak of $68.38 marked on Monday.

Saudi Energy Minister Prince Abdulaziz bin on Tuesday Salman sought to reassure markets, saying the kingdom would restore its lost oil production by month-end having recovered supplies to customers to the levels they were prior to weekend attacks.

“I would think a spike in oil prices will likely prove to be short-term given that the global economy isn’t doing too well,” said Akira Takei, bond fund manager at Asset Management One.

Still, heightened geopolitical tensions underpinned oil as well as some safe-haven assets such as U.S. bonds.

A U.S. official told Reuters on Tuesday the United States believes the attacks originated in southwestern Iran, an assessment that could further increase the rivalry between Tehran and Riyadh.

Adding to uncertainties in the Middle East were exit polls from Israel’s election, which showed the race too close to call suggesting Prime Minister Benjamin Netanyahu’s fight for political survival could drag on.

Gold was mostly flat at $1,502.10, while the 10-year U.S. Treasuries yield fell to 1.810%, compared with Friday’s high of 1 1/2-month high of 1.908% ahead of the Fed’s policy announcement on Wednesday.

While a 25-basis point rate cut is seen as near-certain, investors look to the statement and economic projections from Fed policy makers, given signs of deep disagreements among them.

“Markets are currently almost pricing in three more rate hikes by the end of next year, including one by the end of this year, but the chances are that the Fed’s stance will be more hawkish than markets and we could see rise in bond yields in the near term,” said Masahiko Loo, portfolio manager at Alliance Bernstein.

The ongoing U.S.-China trade war has raised policymakers’ concerns about slowing factory output although resilient domestic consumption has given hawks some reasons to worry about cutting rates too hastily.

Possibly further complicating their discussion, short-term U.S. interest rates shot up this week, with overnight repo rates rising to 7%, due largely to seasonal factors such as huge payments for taxes and bond supply.

That prompted the New York Fed to conduct its first repo operation in more than a decade to inject funds to stressed money markets.

The New York Federal Reserve said late Tuesday it will conduct a repurchase agreement operation early Wednesday “in order to help maintain the federal funds rate within the target range of” 2.00% to 2.25%.

Jeffrey Gundlach, chief executive of DoubleLine Capital, said on Tuesday that the repo market squeeze makes it more likely that the Federal Reserve will resume expansion of its balance sheet “pretty soon.”

Also in focus is the Bank of Japan’s policy meeting due Thursday. While the latest Reuters poll suggests the BOJ will keep its policy on hold, 28 of 41 economists expect it will ease its policy this year and 13 believe it may surprise by taking action at the Thursday meeting.

In the currency market, the euro stood flat at $1.1066 after 0.6% gain the previous day on better-than-expected readings in Germany’s ZEW survey on investor confidence.

Sterling traded at $1.2489, down 0.05% so far on the day, having hit two-month high of $1.2528 as investors reversed their bets against the currency on fear of a no-deal Brexit at the end of next month.

The yen eased slightly to 108.26 yen, near 1 1/2-month low of 108.37 touched on Tuesday.

– Reuters


Saudi Aramco pursues IPO planning despite attack damage doubts

RIYADH, Sept 17 — Saudi Aramco is pressing ahead with its listing plans this week, although some investors and analysts doubt it can now meet its timeline as it has not said when oil output will be restored after attacks on its facilities. Reuters…


Oil sheds gains, stocks inch lower as focus turns to Fed

LONDON, Sept 17 — Oil shed some of its massive gains today as the United States flagged the possible release of crude reserves, while stocks inched lower as investors remained on the sidelines ahead of this week’s Federal Reserve meeting….