By Saikat Chatterjee
LONDON, May 9 (Reuters) – The dollar climbed to its highest levels in two decades on Monday as a combination of rising U.S. Treasury yields and a tightening lockdown in China boosted the safe haven appeal of the greenback.
Against a basket of major currencies, the dollar topped 104.19 for the first time since July 2002, extending its almost 9% rise this year.
The dollar's rise has been aided by a relentless march higher in U.S. Treasury yields. On Monday, yields on ten-year benchmark debt hit 3.18% for the first time since Nov 2018. They have doubled over the past two months.
"It is hard to go against the current momentum for higher yields and U.S. dollar strength in the near term," Mizuho strategists said in a daily note.
Even though the peak in U.S. interest rates in the current hiking cycle is seen at around 3.5% in mid-2023, the speed of the Federal Reserve's rate hiking cycle is far greater than its peers at the Bank of England and the European Central Bank.
That is evident in the euro zone where recent hawkish comments by policymakers have prompted investors to start repricing rate expectations even though projected rate hikes in Europe will lag the United States by a big margin.
Money markets expect the United States to raise interest rates by another 200 bps during the remainder of the year, taking benchmark rates to nearly 3%, while a projected 92 bps of hikes by the ECB will just take its benchmark deposit rate into positive territory.
The Fed hiked its benchmark funds rate by 50 basis points last week and strong jobs data has reinforced bets on further big hikes, with inflation figures due on Wednesday in focus as next risk of an upside surprise.
The growth sensitive Australian dollar fell 1% to $0.6999, its lowest since February. Sterling and the New Zealand dollar hit 22-month lows, while the euro and yen were barely above recent major troughs.
Cryptocurrencies have been battered in the rush from risky assets and bitcoin was nursing weekend losses and near its lowest levels of the year at $33,500 while ether , which fell 4% on Sunday, was at $2,440.
(Reporting by Saikat Chatterjee; Additional reporting by Tom Westbrook in Singapore; Editing by Kirsten Donovan)
Stock splits typically have led to oversized returns, says Bank of America.
It's certainly understandable; getting more shares of your favorite company can bring a smile to the faces of even the most stoic among us. It's also true that companies that announce their intentions to split their stock tend to see their share prices run up as the split date approaches. All this buying can drive share prices up, bringing in more momentum traders and adding fuel to the fire.
Look beyond the popular growth stocks. A healthy stream of income awaits.
Energy prices are soaring. But bargain-hunter Buffett continues to bet on big oil.
Over the past year and a half, the Biden Administration has shown a consistent policy bent toward the promotion of electric vehicles (EVs). This has given EV manufacturers openings for new contracts with Federal, state, and local level government agencies. More importantly, the Administration has publicly backed Federal funding for a massive build-out of EV charging infrastructure. This provides a real opening for investors. The modern EV industry is young, and provides investors with an array o
Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet's Quant Ratings, , we zero in on three names. While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names. Snap Inc. recently was downgraded to Sell with a D+ rating by TheStreet's Quant Ratings.
These innovative growth stocks have the potential to lead investors to financial independence in less than two decades.
CPI inflation data is out on Friday. Plus, earnings and investor days from Pfizer, Vail ResoResorts, AMD, DocuSign, NIO, Campbell Soup, and more.
Investors think it's the wrong time to be invested in QuantumScape and other speculative stocks.
(Bloomberg) — Chinese regulators are preparing to wrap up their investigation into Didi Global Inc. and restore the ride-hailing giant’s main apps to mobile stores as soon as this week, the Wall Street Journal reported.Most Read from BloombergRussia Hits Kyiv With Missiles; Putin Warns West on ArmsWhy Peak Inflation Is Near, According to Experts Who Bet on Short-Lived Price RisesSaudis Raise Oil Prices More Than Expected Amid Asia ReboundUS May Allow More Iran Oil to Flow Even Without Deal, Say
The e-commerce platform just inked a deal to purchase a fulfilment technology provider to further grow its business.
From buying groceries to gasoline to automobiles, inflation has hammered Americans' purchasing power. In fact, the most well-known metric of inflation has soared to a four-decade high. A myriad of factors has come together to increase inflation in 2021 and … Continue reading → The post How to Profit From Inflation appeared first on SmartAsset Blog.
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Stocks fell last week, but was it constructive? Tesla tumbled on Elon Musk's "super bad" warning. Apple WWDC is due.
Inflation takes centerstage in the week ahead, with May’s CPI print in focus. Meanwhile, the Federal Reserve enters a blackout period before its next policy-setting meeting later this month.
Hundreds of Chinese companies are listed on U.S. markets. But which are the best Chinese stocks to buy or watch right now? Among the best are JD.com, NetEase, Li Auto, Xpeng and BYD Co.. China is the world's most-populous nation and the second-largest economy, with a booming urban middle class and amazing entrepreneurial activity.
(Bloomberg) — Stocks in Europe gained along with US equity futures Monday as Beijing further eased Covid restrictions, helping soothe a fragile mood amid inflation and rate-hike concerns. Treasuries and the dollar slipped.Most Read from BloombergRussia Hits Kyiv With Missiles; Putin Warns West on ArmsWhy Peak Inflation Is Near, According to Experts Who Bet on Short-Lived Price RisesSaudis Raise Oil Prices More Than Expected Amid Asia ReboundUS May Allow More Iran Oil to Flow Even Without Deal,
This week, we're talking about the arrest that has everyone in the NFT space sweating bullets. If you want to get this in you inbox every Thursday afternoon, you can subscribe on TechCrunch's newsletter page. This week, the U.S. Attorney’s Office in the Southern District of New York arrested and filed charges against a former OpenSea executive who used his position to front-run NFT projects that were going to be listed on the home page of the marketplace.
When investors think of stocks Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) owns, they probably think of value-focused investing. Berkshire's top holdings are Apple (39%, a value play in 2016 when he first bought the stock), Bank of America (11%), Chevron (8%), and American Express (7%). Snowflake (NYSE: SNOW) is a fast-growing tech company that Berkshire Hathaway purchased as pre-IPO shares.
The 60-40 stock-bond portfolio has been a bedrock of traditional investing, but it's also been a loser thus far in 2022.
By Saikat Chatterjee