2023-06-08 16:54:00
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Investing.com – There are bets that the Federal Reserve will raise interest rates next week after the sudden rise in borrowing costs by the Bank of Canada. Meanwhile, GameStop is turning over its leadership team, terminating its CEO’s contract and appointing community favorite Ryan Cohen as CEO.
1. Gold goes at full speed
Spot contracts rose suddenly with the release of unemployment data by more than 1% as a result of a higher than expected rise, which warns of the need for the US Federal Reserve to stop raising interest rates so as not to harm the US economy. Especially with the recent unemployment rate rising to 3.7%.
And spot gold contracts rose by 1.38% to 1966.85 dollars, while futures contracts rose to 1981.85 dollars, an increase of 1.20%.
The American fell by 0.73% to 103.3 against a basket of foreign currencies. Likewise, US Treasury yields fell by more than 1% for the 10-year and 30-year Treasury yields.
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2. The US Treasury bond yields rose after the Bank of Canada rose
US yields rose on Thursday, with a big jump overnight, as investors gauged Federal Reserve policy expectations after an unexpected rate hike by .
By 04:57 ET (08:57 GMT), the yield on had increased to 3.797%, while the yield on had increased to 3.952%. It also rose, which is sensitive to Fed rate expectations, to 4.551%. Also, interest rates go down as yields go up.
On Wednesday, the Bank of Canada raised interest rates, ending the latest pause in monetary tightening. The central bank argued that the move was necessary to combat the stubborn rise in .
Combined with the earlier rate hike earlier this week, it has boosted bets that the Federal Reserve will follow suit at its highly anticipated meeting next week. And the probability that he will raise interest rates by 25 basis points – and not pause a prolonged tightening campaign – has now risen to 32.2% from 21.8% on June 6, according to the Fed’s watchdog CME Group.
3. The stability of futures contracts as a meeting approaches
US stock futures largely hovered around the flat line as investors looked forward to next week’s all-important federal policy meeting.
By 04:59 ET, both contracts were broadly unchanged, while declining by 9 points, or 0.06%.
In the previous session, it was up 0.27%. Meanwhile, both the and declined, which slowed the recent rally.
With Washington’s charged debt ceiling now resolved and earnings season drawing to a close, attention is turning to the Fed’s two-day meeting starting on June 13th. On the data front, the main {ecl-733 release for May will be next Tuesday, which some analysts say could be pivotal in determining whether policymakers choose to raise interest rates or induce pauses. Temporary for more stress.
4. GameStop shares decline after CEO Matt Furlong is retired
Shares of GameStop (NYSE: ) fell more than 17% of their value in pre-market trading Thursday after the video game retailer announced that it had “terminated” CEO Matt Furlong and named Ryan Cohen as CEO.
GameStop said Furlong also resigned from the board of directors on June 5. The company noted in a regulatory filing that “his resignation did not result from any disagreement with the company regarding any matter relating to the company’s operations, policies or practices.”
Cohen, whose investment in GameStop helped turn it into a favorite of MEM investors, previously joined the board in 2021. He later became chairman in June of that year.
The changes come as GameStop tries to boost sales, which have been under increasing pressure as downloadable console games discourage shoppers from buying hard copies sold in its stores. Wednesday’s release came in below Wall Street’s estimates
5. Chinese state-backed banks cut deposit rates
China’s four big government-sponsored lenders said they cut their rates on yuan deposits, as Beijing seeks to support a post-pandemic recovery that shows signs of abating.
The Industrial and Commercial Bank of China: and the Agricultural Bank of China. and Bank of China Limited. And China Construction Bank cut deposit rates by 5 basis points, according to the companies’ websites. Deposits for three and five years also decreased by 15 basis points.
This is the second time in less than a year that these banks have reduced deposits.
The moves come as China tries to boost consumption and investment in the wake of data showing disappointing exports and a faltering real estate market. The world’s second-largest economy enjoyed a rebound in the first quarter after the lifting of harsh coronavirus restrictions, but that initial rush may now be waning.
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