Economic News

LONDON (AFX) - European government bonds recorded good gains to end the week on a high note, with much of the boost coming from across the Atlantic where rate hike expectations have been scaled back to such a degree that talk of a reduction has emerged. Developments in the US dominated the fixed income market where predictions of rate cuts are taking hold. The euro's sharp rise on the dollar also ...

(repeated for technical reasons) LONDON (AFX) - The dollar was steady against the euro after earlier falling to 16-day lows as yesterday's very poor Philly Fed survey out of the US cemented market expectations that the next interest rate move will be down. With no US data scheduled this afternoon, however, activity is likely to tail off going into the weekend as market players look ahead to next ...

LONDON (AFX) - The future leadership of the Labour Party is expected to dominate its annual conference next week as focus turns to how Chancellor Gordon Brown will lead the party into the next general election if he succeeds Tony Blair as prime minister. Brown is the odds-on bet to replace Blair but the leadership tussle is far from over yet. Just how far the annual conference will be used as a s ...

LONDON (AFX) - Gold prices rose for a third day, benefiting from the modest correction in oil and declines in the US dollar, but analysts warned overall sentiment remains weak and should limit gains going forward. "Despite the latest recovery, the environment for gold does not look bullish. The support from a weakening dollar for gold seems to be limited," said Dresdner Kleinwort analys ...

LONDON (AFX) - The dollar reached two-week lows against major currencies as the market began to predict cuts in US interest rate next year following very disappointing US data yesterday. A massive and unexpected slump in the Philadelphia Federal Reserve index of manufacturing activity for the region released late last night sparked a wave of dollar selling. The euro rose to a 16-day high against  ...

Business lobby group the CBI said increased export orders lay behind the improved demand, leading to stronger expectations for output over the coming months.The CBI's barometer for total orders improved to minus 5 per cent in September up from minus 8 per cent in August and the strongest since December 2004 when it was minus 4 per cent.However, analysts expressed concerns over whether the momentum ...

SINGAPORE (Reuters) - European Central Bank governing council member Erkki Liikanen said on Friday that vigilance was needed on inflation despite a sharp fall in oil prices. In a business speech in Singapore, he said the global economy had seen a period of strong economic momentum which should stay firm with European growth now broad-based. But he said there were three downside risks to economic growth; uncertainty about the U.S. housing market, high oil prices, and global economic imbalances. ...

SYDNEY (XFN-ASIA) - The US dollar was little changed against major currencies in early afternoon trade here with an overnight selloff in the greenback in the wake of weaker-than-expected economic data easing off as the market consolidates for the moment, dealers said. At 1.50 pm in Sydney (0350 GMT), the US dollar was at 116.44 yen from 116.37 in early trade here, while the euro was up at 1.2791  ...

SYDNEY (XFN-ASIA) - The US dollar was lower against the yen and euro here as traders continued to react to the biggest fall in the Philadelphia Federal Reserve survey since January 2001, dealers said. They said the US dollar dropped overnight as chances of another Federal Reserve interest rate hike this year were priced out and expectations raised for an interest rate cut in 2007. At 10:03 am Sy ...

Treasury prices rallied Thursday and the yield on the 10-year note ended at a more than six-month low, after an index of manufacturing in the Philadelphia region showed a negative result for the first time since April 2003. The Philly Fed diffusion index plunged to -0.4 in September from 18.5 in August, the Federal Reserve Bank of Philadelphia said. Readings below zero indicate contraction. Eco ...