Economic News

Treasury prices were little changed early Thursday and the yield on the benchmark 10-year note remained at a five-month low, after the latest batch of economic reports did little to alter the market's view that the Federal Reserve has ended its rate-hiking cycle. The 10-year Treasury note was last flat at 100 28/32, with a yield (TNX) of 4.755%. Bond prices and yields move in opposite direct ...

(Updating with more comments) LONDON (AFX) - The first signs emerged today showing how the Bank of England's surprise rate hike at the start of August has dented sentiment, suggesting that the path for UK interest rates may not be so clear cut after all. Investors believing that another rate hike is looming in November were forced into a rethink today after a closely watched barometer of consume ...

The dollar fell versus the euro and traded little changed against the yen early Thursday on growing expectations that interest rates in the eurozone will continue to climb higher. The European Central Bank on Thursday kept interest rates on hold at 3%, after hiking by a quarter-point earlier this month. ECB President Jean-Claude Trichet said in prepared comments that "strong vigilance" is neede ...

FRANKFURT (AFX) - European Central Bank president Jean-Claude Trichet said the ECB remains constantly alert on inflation risks, but said he cannot give any precommitment on future interest rate moves. The ECB governing council left interest rates unchanged at its meeting today, but economists expect a rate hike at the next monetary policy meeting on Oct 5 in Paris. Trichet said the central bank  ...

(updates with assumptions on price of oil and euro-dollar rate) FRANKFURT (AFX) - The European Central Bank said it has raised its 2006 and 2007 forecasts for euro zone growth and inflation. The ECB raised its 2006 GDP growth forecast to 2.5 pct from 2.1 pct previously and its 2007 growth forecast to 2.1 pct from 1.8 pct. It also raised its forecast for 2006 inflation to 2.4 pct from 2.3 pct, a ...

NEW YORK (AFX) - Wall Street extended its advance in early trading Thursday as investors got some reassuring news -- consumer spending rose in July and core consumer inflation eased, signaling that the current economic slowdown might not be as severe as some have feared. Investors who have digested a series of economic reports in a slow pre-holiday week were pleased by a Commerce Department r ...

US consumer spending rose by the largest amount for six months in July, a sign that the slowdown in the economy may not be as severe as some fear. The Commerce Department said that spending rose by 0.8% last month, the best figure since January, and double the 0.4% gain in June. Yet separate figures from the department showed that while spending rose, inflation remains a problem. Non-food, non-energy annual consumer price inflation hit 2.4% in July. This is the largest figure in four years a ...

LONDON (AFX) - The euro remained firm after the European Central Bank's president Jean-Claude Trichet gave the expected strong hint that borrowing costs will be rising in both October and December. In his press conference following the much-anticipated decision to keep the key refi rate on hold at 3.00 pct, Trichet stressed again that the central bank will maintain "strong vigilance" on ...

(Adds more comments) FRANKFURT (AFX) - European Central Bank president Jean-Claude Trichet said the ECB is exercising "strong vigilance" on inflation risks in the euro zone and that further interest rate increases will be warranted if the economic recovery continues. Data that has become available since the ECB's last meeting have underpinned the reasoning behind the bank's decision to ...

LONDON (Dow Jones) -- The European Central Bank on Thursday kept interest rates on hold as part of its go-slow campaign to stamp out inflation, though the Frankfurt-based central bank is expected to hint of another rate hike in as little as one month's time. The ECB, which sets interest rates in the 12 countries that use the euro as their currency, kept interest rates at 3%, after hiking by a q ...