More measures may be needed to stop blow-ups at complex crypto firms like FTX from destabilising the wider financial system, the global Financial Stability Board (FSB) said on Tuesday. The FSB, which groups regulators, central banks and treasury officials from the G20 economies, said turmoil in crypto markets last year when FTX collapsed highlighted how “multifunction” crypto firms, that combine trading and other activities, can exacerbate vulnerabilities. The vulnerabilities are similar to those found in traditional finance, including leverage, liquidity mismatches, technology and operational vulnerabilities, the FSB said in a ...

Cash conditions in China’s money market showed signs of tightness on Monday, as market participants grew cautious about month-end demand and a recent liquidity squeeze remained fresh in memory. Despite fresh liquidity injections by the central bank to calm the market, traders and analysts said borrowing costs for the funds that could help financial institutions, especially non-banks, to tide over the critical month-end period remained high. The price of the benchmark seven-day repos traded in the interbank market, hit a high of 2.8% on Monday, the highest level since Oct. ...

Deutsche Bank on Monday forecast the to end next year 12% higher as it expects corporate earnings to remain resilient even if the United States experiences a mild and short recession. Deutsche Bank analysts expect the index to end 2024 at 5,100 points. The S&P 500 is up close to 19% so far this year. The bank forecast earnings for companies in the benchmark index to rise 10% after factoring in a “mild short” recession and a 19% increase if U.S. gross domestic product grows by 2%. Deutsche Bank’s 2024-end ...

Earlier this fall, Morgan Stanley bought $300 million worth of protection against losses on some of its loans from Blackstone Group (NYSE:) and other investors, two sources familiar with the matter said. The transaction, details of which have not been previously reported, was effectively insurance, structured as a sale of bonds called credit-linked notes, according to the sources and regulatory filings. By transferring the risk to investors, the $1.4 trillion asset bank could reduce the amount of capital it has to hold against those loans to cover for potential losses. ...

Global stocks steadied on Tuesday, underpinned by the conviction among investors that the Federal Reserve will not raise rates again, which kept the dollar at three-month lows and supported gold above $2,000 an ounce. Traders will have to weigh up data this week on how the U.S. economy fared in the third quarter, along with a key read of consumer inflation and spending – both of which could be instrumental in setting expectations for the timing of the first rate cut. The MSCI All-World index was last unchanged on the ...

Euro zone government bond yields fell on Monday, with investors awaiting inflation data due later this week that could affect expectations for interest rate cuts in 2024. Money markets scaled back their bets on policy rate reductions last week as European Central Bank (ECB) policymakers warned about “too optimistic” bets on future cuts. Market participants expect ECB President Christine Lagarde to reiterate that the central bank is in wait-and-see mode later in the session when addressing the European Parliament’s Committee on Economic and Monetary Affairs. Germany’s 10-year government bond yield ...

Hedge funds sold the largest volume of U.S. tech and media stocks seen since July in the week to Nov. 24, Goldman Sachs said GS.N in a prime brokerage note to clients on Friday, a signal that the popularity of these stocks may be fading. Crowding into tech stocks, particularly the so-called “Magnificent 7”, which includes Apple AAPL.O, Amazon AMZN.O and Nvidia NVDA.O, had reached the most intense that Goldman Sachs has seen in 22 years, the bank said earlier last week. By the end of the week, information technology ...

Signs the U.S. stock market rally is broadening from the so-called Magnificent Seven of mega-cap growth and technology companies is bolstering investor hopes for a rally through year-end. Equities have risen sharply, with the S&P 500 .SPX up over 8% in November, on the cusp of a new high for 2023, fueled by falling Treasury yields and cooling inflation readings that could signal the end of Federal Reserve rate hikes. Yields fall when Treasury prices rise, and the lower returns on guaranteed fixed-income investments make stocks more appealing. While some ...

Global equities were little changed on Monday as investors waited for key U.S. and European inflation data later in the week, while gold hit a six-month high as the dollar fell. MSCI’s index of world stocks was last down 0.06% after climbing for four straight weeks and notching a gain of around 8.7% this month. Europe’s index was last 0.13% lower, while Germany’s stock index was down 0.12% and 100 slipped 0.2%. Futures on the were 0.18% lower. Global stocks have surged in recent weeks as bond yields have dropped, ...

Investors are torn over when global interest rates are likely to start falling, which is weighing on the dollar at a seasonally tricky time of year, meaning upcoming inflation data will be more important than ever, while China mulls its growth outlook. World leaders gather in Dubai for a summit on climate change, but any agreement on how to deal with it or pay to tackle it seems a distant prospect. Here’s your week ahead in world markets from Lewis Krauskopf in New York, Kevin Buckland in Tokyo, and Naomi ...

U.S. stocks ended little changed in holiday-shortened trading on Friday, with low volume and conviction as investors watched the start of the seasonal shopping season for signs of consumer resiliency. The S&P 500 closed nominally higher, while the Dow eked out a modest gain. The Nasdaq was dragged slightly lower by weakness in megacap momentum stocks. All three indexes notched their fourth consecutive weekly gains. “We had mixed macroeconomic data and the post-Thanksgiving session is only half a day, so there aren’t that many participants,” said Peter Cardillo, chief market ...

Investors have poured $40 billion into stocks since Oct. 9, the biggest two-week inflow since February 2022, as equities rallied, Bank of America said on Friday. In the four trading sessions to Tuesday, investors put $16.5 billion into stock funds, BofA said in its weekly Flow Shows research note, citing figures from financial data provider EPFR. Global stocks have surged since the end of October as data has shown U.S. inflation is cooling faster than expected. That has raised hopes among investors that central banks might start cutting interest rates ...

Global equity funds attracted robust inflows in the seven days leading to Nov. 22, spurred by growing expectations that the U.S. Federal Reserve will stop raising interest rates amid signs of easing inflation. Investors purchased a net $9.13 billion worth of global equity funds during the week, after about $10.96 billion worth of net accumulations in the prior week, LSEG data showed. European equity funds saw substantial inflows, attracting about a net $4.28 billion, the highest weekly amount since February 1. U.S. funds also performed well, securing $6.27 billion, but ...

US: Closely following the ISM manufacturing index for any signs of a rebound Markets have firmly bought into the view that the Federal Reserve won’t hike interest rates any further and that 2024 will see a series of interest rate cuts from the second quarter onwards. Around 90bp of cuts are currently priced, whereas we’re forecasting 150bp for next year on the basis that consumer weakness is likely to be a key theme given subdued real household disposable income growth, fewer savings resources, and less borrowing as interest rates continue ...

British investment managers have got the go-ahead to develop tokenised funds, in which assets are split into smaller tokens backed by blockchain technology, the industry’s trade body said on Friday. Tokenisation, or fractionalisation, of funds will enable a fund’s assets to trade more cheaply and transparently and investors to buy into a wider range of assets, industry proponents say. Funds authorised by Britain’s Financial Conduct Authority can take the first steps towards offering tokenised funds, provided the investments are in mainstream assets and valuation and settlement arrangements don’t change, the ...