Stocks and U.S. government bonds sell off in tandem Friday as trade jitters cool rally - MarketWatch Stocks and U.S. government bonds sell off in tandem Friday as trade jitters cool rally  MarketWatch

Click Subscribe #Stocks #Bonds #MarketWatch #TradeJitters #Investing

China May bank loans rise less than expected as trade jitters weigh BEIJING (Reuters) -New bank lending in China rose less than expected in May after hitting a nine-month low in April, as companies and consumers remained cautious about taking on more debt despite interest rate cuts and a trade truce between Beijing and Washington. Chinese banks extended 620 billion yuan ($86.34 billion) in new loans in May, rising from 280 billion yuan in April - the lowest since July 2024, according to Reuters calculations based on data released by the People’s Bank of China on Friday. Analysts polled by Reuters had expected May new yuan loans would reach 850 billion yuan, but still lag the 950 billion yuan seen a year earlier. "Bank loan growth continued to slow last month, but broad credit growth held steady, thanks to the continued strength of non-bank borrowing," Capital Economics said in a note. "With deflation keeping real lending rates elevated, despite the recent small fall in policy rates, we don’t expect much of a pick-up in private credit demand over the coming months." The central bank does not provide monthly breakdowns. Reuters calculated the May figures based on the bank’s January-May data, compared with the January-April figure. Banks extended 10.68 trillion yuan in new loans in January-May, down from 11.14 trillion yuan in the same period last year. Household loans, mostly mortgages, expanded 54 billion yuan in May, compared with a contraction of 521.6 billion yuan in April, according to the bank’s data and Reuters calculations. But corporate loans fell to 530 billion yuan from 610 billion yuan in April. The U.S. and China reached a framework trade deal at talks in London this week, after a fragile truce struck in May faltered over China’s mineral export curbs, prompting U.S. retaliatory export controls on semiconductor software, jet engines, and other goods. But analysts expect eventual U.S. tariffs, while being rolled back to some degree, will remain much higher than past years, pressuring Chinese exporters, while a protracted property crisis continues to sap loan demand and confidence. Beijing’s raft of monetary easing measures last month aimed at cushioning the impact of the trade war, including rate cuts and a major liquidity injection, did appear to help boost credit demand to some extent, and analysts said the benefits of the measures may not yet be fully realised. Still, Capital Economics expects the central bank to cut its policy rate by a further 40 basis points (bps) later this year after last month’s 10 bps cut. Outstanding yuan loans rose 7.1% in May from a year earlier, a fresh record low and down from a 7.2% pace in April. Analysts had expected 7.2% growth. Broad M2 money supply grew 7.9% from a year earlier, the central bank data showed, below analysts’ forecast of 8.1% in a Reuters poll. M2 expanded 8.0% in April. The narrower M1 money supply climbed 2.3% year-on-year, compared with 1.5% in April. Outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, rose 8.7% year-on-year, unchanged from April. TSF includes off-balance-sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies and bond sales.

Click Subscribe. #China #BankLoans #Economy #Finance #TradeJitters

Stock Market Today: Stocks Face Weak Open on Trade Jitters, Boeing, PPI - TheStreet Stock Market Today: Stocks Face Weak Open on Trade Jitters, Boeing, PPI  TheStreet

Click Subscribe #StockMarket #Boeing #TradeJitters #PPI #FinanceNews

Click Subscribe #StockMarket #Investing #TradeJitters #USStocks #FinancialNews

US dollar’s safe haven halo flickers amid Fed, fiscal and trade jitters - Reuters poll BENGALURU (Reuters) - Concerns are mounting about the dollar’s safe haven appeal, according to a majority of FX strategists surveyed by Reuters who forecast the global reserve currency will decline further over the coming year amid fears of an economic downturn. Since President Donald Trump’s return to the White House, the greenback is down nearly 9% against a basket of major currencies, with his incessant flip-flopping on tariff policies battering investor sentiment. A 90-day reprieve to his April 2 reciprocal tariffs has done little to aid a revival. Over 55% of respondents, 46 of 83, surveyed April 30–May 6 who answered an additional question voiced concern about the dollar’s safe haven status — a sharp rise from about a third in the April survey — though most conceded no clear alternative exists yet. "I’m very concerned," said Steve Englander, head of global G10 FX Research at Standard Chartered. "It’s like a betrayal of confidence from a friend. You can argue it didn’t matter, or that you didn’t mean it, but your friend still remembers it. That’s where the dollar currently is with respect to international confidence." "If you’d asked me this two months ago, I’d say what matters for the dollar in the first instance is the stimulus, and the funding - whether or not they’ve actually gotten revenues - would be secondary. Now it’s clear markets are much more concerned about the long-term fiscal path." These worries have weighed heavily on the greenback in recent weeks. But the euro, currently at $1.13 and barely off an over-three year high on April 18, was not expected to make further gains by the end of the month or by end-July, according to survey medians from over 70 forecasters. "We’re generally quite flat with our view on euro-dollar in the short-term. There is still some room for the dollar to recover because of signals from the Trump administration they are shifting from threatening and announcing big tariffs to a phase of negotiating trade deals," said Francesco Pesole, currency strategist at ING. A near-80% majority of strategists, 47 of 59, expected a decrease in dollar net-shorts in U.S. Commodity Futures Trading Commission positioning or not much change by end-May. The common currency was then predicted to rise to $1.14 in six months and $1.16 in 12 months, poll medians showed — its biggest year-ahead monthly forecast upgrade since November 2010. The U.S. economy contracted for the first time in three years last quarter, swamped by a flood of imports as businesses raced to avoid higher costs from tariffs. While interest rate futures are pricing in three Federal Reserve rate cuts by year-end, policymakers have hinted they were in no hurry to reduce rates anytime soon. "We’re more bearish on the dollar in the second half of the year. More realization of weak U.S. hard data, the Fed starting to actually cut rates as market are pricing, some of the rotation out of U.S. assets and concerns around Fed independence will likely come back into view," said Erik Nelson, macro strategist at Wells Fargo Securities. Despite Trump calling Fed Chair Jerome Powell "a total stiff" and repeating calls to lower interest rates, he said he would not remove Powell before his term ends in May 2026. "Everything depends on Fed independence. If there’s ever fear the Fed is losing its independence it seriously undermines the dollar’s safe haven status," said Brian Rose, senior U.S. economist, UBS Global Wealth Management. "We’re seeing the Japanese yen or Swiss franc, which are sort of the backup safe havens, benefiting from the current situation." (Other stories from the Reuters May foreign exchange poll) Which stock should you buy in your very next trade? AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?

Click Subscribe. #USDollar #SafeHaven #FederalReserve #EconomicNews #TradeJitters

Click Subscribe. #BOJ #InterestRates #EconomicForecast #TradeJitters #GrowthForecasts

European shares edge higher as traders gauge mixed earnings, economic data (Reuters) -European shares edged higher on Wednesday as investors assessed mixed corporate earnings and key economic data, wrapping up a volatile month dominated by disruptive U.S. trade policy. The pan-European STOXX 600 index was up 0.2%, as of 0834 GMT, but on track for a second consecutive monthly drop, if current trends persist. Other regional indexes showed a mixed performance, with Germany and France up 0.5% and 0.3%, respectively, while Spain and the UK slipped 1.4% and 0.1%, respectively. The European benchmark index has clawed back over half of its losses after tumbling nearly 18% from record highs earlier this month, sparked by fears of a global recession following U.S. President Donald Trump’s import tariffs. Markets have stabilized somewhat in recent weeks on optimism over potential deals between the United States and its trading partners, especially China. However, a lack of clarity on Sino-U.S. negotiations has kept the market sensitive to any developments. Despite Trump’s move to soften the blow of his auto tariffs and signs of progress in broader trade negotiations, details remain scant, with U.S. Commerce Secretary Howard Lutnick saying he had reached one deal with a foreign power. The latest earnings forecasts released on Tuesday indicate an improved outlook for European corporate health. According to data from the STOXX 600 companies that have reported their first-quarter earnings, at least 60.4% of them posted better-than-expected numbers. "It could be the calm before the storm because basically a lot of earnings are looking back to before when the U.S. tariffs were imposed and companies seem to be doing rather well so far. The question is, will that be the case going forward? And, that is something that the markets are still waiting for," said Axel Rudolph, senior technical analyst at IG Group. Societe Generale (OTC:SCGLY) rose 2.7% after the French bank reported stronger-than-expected first-quarter earnings. Danish logistic group DSV advanced nearly 9% after it completed a deal to acquire Germany’s Schenker and provided an outlook on potential benefits from the transaction. Shares of Credit Agricole (OTC:CRARY) fell 4.4% after the French bank reported a drop in first-quarter profit. Evolution slumped 16.9% as the Swedish gaming technology company reported its first-quarter earnings below estimates. Mercedes fell 1.1% after the carmaker withdrew its 2025 earnings outlook, citing volatility due to U.S. tariffs. Preliminary data showed modest economic growth in both France and Germany in the first quarter of 2025, with France also experiencing a sharper-than-expected rise in consumer prices in April. The euro zone economy grew faster than expected in the first quarter, starting 2025 on a modestly upbeat note, though looming risks — including a potential trade war with the U.S., a stronger euro, and worsening business sentiment — threaten to undermine momentum, according to data.

Click Subscribe #EuropeanShares #StockMarket #TradeJitters #EarningsReports #Investing