Strategist Michael Antonelli joins Jared Blikre to break down the Fed decision and more at 2 P.M. ET Wednesday.
* ECB's Lagarde says negative rates to end soon * Dollar drops across the board, follows selloff last week * Swiss franc gains on hawkish comments * Aussie rises though election reaction muted (Updates prices to late afternoon; adds analyst comments) By Sinéad Carew NEW YORK, May 23 (Reuters) – The dollar index fell on Monday while the euro rallied after the European Central Bank indicated a move from negative interest rates, and riskier currencies gained ground along with equities. ECB President Christine Lagarde said in a blog post that the bank was likely to lift the euro area deposit rate out of negative territory by the end of September and could raise it further if it saw inflation stabilizing at 2%. After declining last week, U.S. equities followed European stocks higher on Monday. The euro's rally came as the dollar fell broadly after already selling off last week. Investors had more appetite for riskier assets on Monday as they reacted to Lagarde's comments and easing worries that a European recession was imminent while the U.S. outlook looked less inspiring, according to Erik Nelson, macro strategist at Wells Fargo, New York. "We're seeing more optimism around global growth – European growth, Chinese growth, UK growth, and a little bit less optimism about U.S. growth. So the growth divergence theme is really a big thing and moving out of favor for the dollar," Nelson said. The euro was the big gainer, last up 1.13% at $1.0687, having risen as much as 3.4% from its multi-year intraday low of $1.0349 on May 13. The U.S. dollar index, which had hit a two-decade high of 105.01 on May 13, was last down 0.82% at 102.09. "Investors are still interested in the greenback, but foreign currency pressure to the upside has created a little bit of a headwind for the U.S. dollar," said JB Mackenzie, managing director of futures and forex at Charles Schwab. In particular, Mackenzie pointed to the euro's rise after the ECB indication that it would become more hawkish. "Everybody else has been hiking interest rates. The ECB has been the last one to do that so that was what put pressure on the euro. Now all of a sudden, you're starting to hear that they're going to be changing their policy route," Mackenzie said. Whether the dollar is taking a breather or keeps falling will depend on news from the U.S. Federal Reserve, according to Mackenzie, who will be watching closely for policy clues in minutes from the Fed meeting, due to be released this week. The greenback has already soared this year but with expectations for repeated rate hikes already priced in, Wells Fargo's Nelson said it may trade sideways for some time. Last week speculators' net long positioning on the U.S. dollar slipped, after hitting their highest level since late November in the previous week, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday. The Australian dollar, which initially showed a muted reaction to the victory for the center-left Labor Party in national elections at the weekend, was up 0.77% at $0.7106. SWISS FRANC GAINS Meanwhile the Swiss franc was gaining against the dollar after Swiss National Bank governing board member Andrea Maechler said in an interview published on Monday that the bank will tighten monetary policy if inflation in Switzerland remains persistently high. The dollar was last down 0.89% against the Swiss franc after hitting its lowest level since late April. Sentiment around China also helped riskier currencies. Shanghai is edging out of a pandemic-related lockdown, and an unexpectedly big rate cut in China last week reassured investors. Also China will broaden its tax credit rebates, postpone social security payments and loan repayments, roll out new investment projects and take other steps to support the economy, state television quoted the Cabinet as saying on Monday. The yuan had its best week since late 2020 last week and in offshore markets on Monday firmed to 6.704 per dollar, its strongest since early May. Geopolitics are also in focus in Asia this week as U.S. President Joe Biden tours the region. ======================================================== Currency bid prices at 3:09PM (1909 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 102.0900 102.9500 -0.82% 6.718% +102.9500 +102.0400 Euro/Dollar $1.0687 $1.0569 +1.13% -5.99% +$1.0697 +$1.0559 Dollar/Yen 127.9150 127.9200 -0.01% +11.11% +128.0550 +127.1600 Euro/Yen 136.70 135.03 +1.24% +4.90% +136.8000 +134.6700 Dollar/Swiss 0.9660 0.9743 -0.89% +5.85% +0.9751 +0.9629 Sterling/Dollar $1.2577 $1.2496 +0.68% -6.98% +$1.2601 +$1.2482 Dollar/Canadian 1.2774 1.2846 -0.55% +1.04% +1.2842 +1.2767 Aussie/Dollar $0.7106 $0.7052 +0.77% -2.24% +$0.7127 +$0.7046 Euro/Swiss 1.0324 1.0289 +0.34% -0.43% +1.0335 +1.0266 Euro/Sterling 0.8495 0.8457 +0.45% +1.13% +0.8504 +0.8434 NZ $0.6463 $0.6410 +0.84% -5.57% +$0.6491 +$0.6400 Dollar/Dollar Dollar/Norway 9.5905 9.7400 -1.64% +8.75% +9.7330 +9.5800 Euro/Norway 10.2510 10.2923 -0.40% +2.38% +10.3123 +10.2207 Dollar/Sweden 9.8115 9.9285 -0.13% +8.80% +9.9711 +9.8023 Euro/Sweden 10.4850 10.4983 -0.13% +2.45% +10.5190 +10.4595 (Reporting by Sinéad Carew in New York and Tommy Wilkes in London Additional reporting by Tom Westbrook in Singapore Editing by Jan Harvey, Will Dunham and Matthew Lewis)
Nio (NYSE: NIO) stock surged Tuesday morning as the broader U.S. market rose, and was trading 10.2% higher as of 12:23 p.m. ET. Ironically, the electric vehicle (EV) maker just got a massive price target downgrade, but investors right now appear to care less about what analysts think and more about what's happening in Nio's home market of China. On Tuesday morning, Citigroup analyst Jeff Chung slashed his price target on Nio to $41.10 per share from $87 a share, according to TheFly.com.
Last month, the annualized rate of inflation hit 8.6%, the highest in more than 40 years. Last week, in response, the Federal Reserve bumped up its benchmark interest rate by 75 basis points, the largest such hike since 1994. The combination of high inflation and aggressive tightening action by the central bank sent an already jittery stock market to its worst single week since the onset of the COVID crisis, and has economists talking gloomily about a repeat of the late 1970s and early 1980s, wh
Yahoo Finance Live anchors discuss Kellogg’s decision to split into three independent companies.
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Elon Musk said three issues still need to be resolved before his planned $44 billion acquisition of Twitter, originally announced in April, can close. Musk, speaking via teleconference Tuesday at Bloomberg’s Qatar Economic Forum, said that he still hasn’t gotten clarity about Twitter’s claim that the fake and spam accounts comprise less than 5% of […]
If you’re thinking of pulling your 401(k) out of the stock market, or you’re too terrified to invest more, you need to meet my friend Betty Badluck. Poor old Betty has had the worst luck of any stock market investor you’ve ever met. In the last 40 years she has invested in the stock market just six times.
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In this article, we discuss the 10 value stocks to buy today according to Mario Gabelli. If you want to skip our detailed analysis of Gabelli’s investment philosophy, hedge fund returns, and history, go directly to 5 Value Stocks To Buy Today According To Mario Gabelli. Billionaire investor Mario Gabelli is known for founding and […]
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Wes Crill, Dimensional Fund Advisors Head of Investments Strategists & Vice President, sits down with Yahoo Finance Live to discuss what to take away from today's market rally, recession indicators, inflation risks, and the relationship between the Fed's interest rate hikes and the housing market.
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The U.S. Department of Justice announced Tuesday that it has obtained a settlement agreement with Meta Platforms Inc. , formerly known as Facebook Inc., to resolve allegations of discriminatory advertising in violation of the Fair Housing Act (FHA). Shares of Meta reversed an earlier gain of as much as 2.5% to trade down 3.6% toward the lowest close since April 3, 2020. The DOJ complaint had alleged that Meta algorithms that determined which Facebook users received housing ads discriminated agai
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Buffett's success is largely due to his unwavering ability to buy high-quality companies when the market is selling everything.
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Strategist Michael Antonelli joins Jared Blikre to break down the Fed decision and more at 2 P.M. ET Wednesday.