Personal finances, Finance and Investing :: Money news

Euro zone lifted as ECB joins central bank trend

The euro briefly jumped to a five-week high and the bloc's bond yields and banking stocks climbed on Friday as comments from an ECB policymaker prompted investors to price in a high chance of a rate hike by year end. Asian stocks advanced and were set for their best week since July after most of the world's biggest economies either tightened monetary policy, or signaled tightening, in a strong sign of confidence about global growth and inflation. Markets are also keeping an eye on the Group of 20 finance leaders' meeting in Germany this weekend, where topics including reforms to boost economic growth, protectionism and exchange rates are expected to be on the agenda. The U.S. Federal Reserve kicked things off this week with an interest rate hike on Wednesday, China followed with its own hike on Thursday, and then Britain and a European Central Bank policymaker hinted at higher rates.The latter two came as somewhat of a surprise to markets with Britain's economic future in doubt as it exits the European Union, and the fragile single currency area still being treated with trillions of euros of central bank money-printing. It was the suggestion from the Austrian central bank governor that the ECB could raise rates before the end of its quantitative easing scheme - scheduled to run until December - that really caught investors off guard."The market has been listening to the ECB's forward guidance for a long time and pricing that in," Mizuho's head of European rates strategy Peter Chatwell said."So now to hear a different tune from the ECB inevitably means there has to be a change in markets."

Euro zone government yields rose broadly on Friday, with some benchmark German yields at five-week highs. Money market rates, which fully price a rate hike for March 2018, showed an 80 percent chance of a December hike, up from 60 percent a week ago. <GVD/EUR> Banking stocks across the bloc also gained around 0.5 percent . SX7E, outperforming the broader index which was down 0.2 percent on the day. . STOXXE The ECB currently has a negative deposit rate which acts as a tax on banks hoarding money with the central bank. HIGHER AND HIGHER

The euro jumped to a five-week high against the dollar to $1.0783, extending gains seen after an election in the Netherlands saw a comfortable win by the sitting prime minister over a far-right rival. By 0830 GMT, the euro had edged back to $1.0769, but remained up against the U.S. dollar which hit a five-week low and is down more than 1 percent for the week. . DXYWhile the Fed raised interest rates by 25 basis points on Wednesday as widely expected, it kept its original forecast of three rate hikes this year, disappointing investors who were expecting a bump up to four after a string of upbeat U.S. economic data. Sterling GBP=D4 rose for a third day running for the first time since mid-January and was perched at a two-week high after a decision by the Bank of England on Thursday to hold interest rates steady, while hinting it might raise them soon.

"The story in global markets over the past 24 hours has centered on a broad-based tightening of monetary policy conditions (and the perception of future tightening)," Chris Weston, chief market strategist at IG in Melbourne, wrote in a note. MSCI's broadest index of Asia-Pacific shares outside Japan . MIAPJ0000PUS rose 0.3 percent and were on track to end the week with a 3.5 percent gain, its biggest increase since July. MSCI's all-country world stock index . MIWO00000PUS held near Thursday's all-time high on Friday, on track to end the week 1 percent higher. In commodities, U.S. LCOc1 and Brent crude CLc1 held above a 3-1/2-month low breached early this week, supported by a weaker dollar. [O/R]Gold XAU= was up slightly at $1,226.83 an ounce. It was poised to gain 1.8 percent for the week, its first in three, driven by the Fed's more moderate monetary policy stance. For Reuters Live Markets blog on European and UK stock markets see this site/url=this site

Futures dip before Fed policy meeting kicks off

U.S. stock index futures were marginally lower on Tuesday ahead of the Federal Reserve's closely watched two-day meeting, where it is widely expected to raise interest rates. Britain's parliament paved the way for Prime Minister Theresa May to launch divorce talks with the European Union, potentially adding a layer of uncertainty in the market. An almost certain U.S. rate hike lifted the dollar by a third of a percent to 101.67. Wall Street's major indexes have been trading in a tight range since the start of the month as investors prepared for higher rates following a slew of hawkish comments from top Fed officials. Stocks ended flat on Monday, with the S&P 500 trading in its tightest range this year as the focus was firmly fixed on the Fed meeting.

The next big question for the market is whether the Fed could get on a more aggressive path to tightening monetary policy than previously expected as economic data shows signs of improvement, with a potential boost from President Donald Trump's proposed fiscal policies. The Fed will release a statement at 2:00 p.m. ET (1800 GMT) on Wednesday followed by a press conference by Fed Chair Janet Yellen.

Shares of Valeant (VRX. N) plunged 13 percent to $10.56 in heavy premarket trading after billionaire investor William Ackman said his hedge fund, Pershing Square Capital Management, sold its entire stake in the company. DSW (DSW. N) was up 3.4 percent at $20.50 after the footwear and accessories maker reported quarterly profit that beat analysts' average estimate. Futures snapshot at 7:23 a.m. ET:

Boeing, aerospace manufacturers back U.S. tax overhaul SEATTLE Boeing Co and about 90 other aerospace companies are urging Congress to overhaul the U.S. tax system, saying a set of changes Republicans proposed last year - including a big cut in the corporate tax rate - will make them more competitive globally and help create U.S. jobs.

Fed, in shift, may move to faster pace of rate hikes SAN FRANCISCO/WASHINGTON The Federal Reserve, which has struggled to stoke inflation since the financial crisis and up until now raised rates less frequently than it and markets expected, may be about to hit the accelerator on rate hikes.

Toshiba pushes sale of nuclear unit Westinghouse as crisis deepens TOKYO Toshiba Corp is 'actively considering' a sale and other strategic options for U.S. nuclear unit Westinghouse, the group said on Tuesday, as it expanded a probe into problems there that caused it to miss an earnings deadline for a second time.