2025-09-17 21:04

TSX ends up 0.02% at 29,321.66 Posts a record intraday high BoC and Fed both ease by 25 basis points Consumer discretionary gains 0.39% Sept 17 (Reuters) - Canada's benchmark stock index ended slightly higher on Wednesday, helped by gains for consumer discretionary shares, as the Bank of Canada and the Federal Reserve resumed cutting interest rates. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 6.43 points, or 0.02%, at 29,321.66, after notching a record intraday high of 29,465.14. Sign up here. Both the BoC and the Fed cut rates by 25 basis points to support their economies, marking their first actions in months. "What we got was what was expected," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth, adding that the pricing in of rate cuts in recent weeks had helped the market overcome a seasonally challenging period. "I believe they're (the BoC) going to cut again over the fourth quarter," Small said. "It's stimulative for the economy and therefore for the stock market." Investors see a roughly 75% chance the Canadian central bank eases further by December. The consumer discretionary sector (.GSPTTCD) , opens new tab rose 0.39% as shares of Dollarama (DOL.TO) , opens new tab and Magna International Inc (MG.TO) , opens new tab notched gains. Heavily weighted financials added 0.14%, but six of the 10 major sectors ended lower. Technology declined 0.93%, with electronic equipment company Celestica Inc (CLS.TO) , opens new tab losing 2.60%. Energy ended 0.37% lower as the price of oil settled down 0.7% at $64.05 a barrel. https://www.reuters.com/markets/europe/tsx-inches-higher-boc-fed-cut-interest-rates-2025-09-17/

2025-09-17 21:02

ORLANDO, Florida, Sept 17 (Reuters) - Making sense of the forces driving global markets By Jamie McGeever, Markets Columnist Sign up here. U.S. markets gyrated sharply on Wednesday after the Fed cut interest rates by 25 basis points, and investors digested its new economic projections and Chair Jerome Powell's press conference. The upshot? Bond yields and the dollar rose, while Wall Street was mixed. More on that below. In my column today I look at how a resumption of the Fed's easing cycle means the U.S. central bank is now swimming against the global tide. This may have mixed blessings for world markets. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Today's Talking Points: * Fed moves The Fed delivered the quarter percentage point rate cut markets had expected, and it looks like there will be more to come. The emphasis on growing labor market risks and the new "dot plot" point to at least another 50 bps of easing this year. But it's far from clear-cut. Employment and inflation risks are incredibly hard to gauge, and Powell said the Fed is in a "meeting by meeting situation". You can't read too much into the market's initial reaction on Wednesday, but yields ended higher and nearly 10 bps of implied easing was taken out of the 2027 rates curve. * Rotation, rotation, rotation The rotation out of Big Tech and growth stocks into small caps and cyclicals was a feature of the summer months but had cooled so far in September. It seemed to show its face on Wednesday, with the Dow and Russell 2000 closing higher and the Nasdaq falling 0.3%. Where does it go from here, now that the Fed decision, revised SEP and Powell's guidance are out of the way? The Dow and Russell 2000 are still significantly lagging the Nasdaq and "Mag 7" this year, and relative valuations suggest there is room to catch up. But AI optimism might suggest otherwise. * Tariff squeeze The impact from tariffs on the U.S. economy has clearly not been felt yet. Retail sales in August were much stronger than expected, the Atlanta Fed's GDPNow model currently has Q3 growth tracking at a healthy 3.4% annualized rate, and Citi's economic surprises index has been positive for over two months. The question is - and has been for months - when does this change? "Pass-through to consumers delayed but not derailed," say BNP Paribas economists, who estimate U.S. firms have so far shouldered 64% of the tariff burden and consumers only 17%. They see that changing to 1% and 63%, respectively. Will that move the dial? Fed easing a mixed blessing for rest of the world We're about to see a rare phenomenon in global central banking: the U.S. Federal Reserve is set to embark on an interest rate-cutting cycle just as many of its peers are winding theirs down. Strictly speaking, the Fed is resuming its easing cycle, having paused last December after announcing 100 basis points of cuts over the preceding three months. Regardless, the world's most important central bank is about to swim against the global tide, something investors haven't seen for many years, especially when it comes to policy easing. The rest of the world, therefore, may need to be prepared for some choppy waters ahead. There have been four large global easing cycles since the euro's launch in 1999, including the current one. In the previous three, the Fed was either one of the first big central banks to move, as was the case in 2019, or among the most aggressive rate cutters, as was the case in the dotcom bust. But last year the Fed was relatively slow off the blocks, as sticky inflation and solid growth meant it pulled the trigger after most of its peers. As a result, the Fed now finds itself playing catch up to other monetary authorities, especially against the European Central Bank and Bank of Canada, which have cut rates 200 and 225 bps in this cycle, respectively. Rates futures markets are currently pricing in around 150 basis points of Fed rate cuts by the end of next year, far more than is expected in the rest of the developed world. Traders expect only another 40-60 bps over the same period from the BoE, BOC, and Reserve Banks of Australia and New Zealand. Meanwhile, the ECB and Swiss National Bank are thought to be done, while the Bank of Japan is slowly raising rates, taking its own unique path. This policy divergence may create some problems beyond U.S. shores. EUR-EKA! The most immediate and obvious market impact of the policy divergence is being felt in FX markets, as the dollar is weakening once again after a summer of relative stability. Unforeseen - and unwanted - domestic currency strength could complicate life for many central banks around the world. Take the ECB. Officials are already expecting core inflation to undershoot their 2% target, ending 2027 at 1.8%. Much of the 15% year-to-date euro/dollar rise will already be plugged into their models, but probably not another jump higher in the world's most important exchange rate. The euro is already on track for its biggest annual rise against the greenback since 2003. If currency strength and tariff-sapped growth depress inflation even more, does that mean the ECB will need to start cutting rates again? Perhaps. But that would risk lowering the policy rate, which is currently 2% and in the middle of the ECB's 1.75%-2.25% neutral range, into stimulative territory, something influential board member Isabel Schnabel has warned against. By some measures the region's 'real' inflation-adjusted interest rate is already below 'R-star', the long-run neutral rate that neither accelerates nor slows growth. You can see why Schnabel and others may be wary of further easing. EUPHORIA? And what about the impact on global equities? Fed easing has historically been a tailwind for world stocks, when looked at purely through the policy rate lens. That's especially true when these rate cuts have been followed by 'soft landings' - i.e., no recession – which stands to reason. The market already seems to be banking on this happening again. Increasingly dovish Fed expectations combined with 'soft landing' hopes and optimism around artificial intelligence and Big Tech have helped drive a global equity resurgence since April. Many key indices have risen to new records, clocking impressive double-digit gains along the way. But how much of that is already 'in the price'? Some analysts reckon there could be more room to go. Strategists at Exane believe equities are only in the "early stages" of an upswing that could culminate in "euphoria", and are overweight Europe and Japan. Their counterparts at Citi are "max long" equities on a global basis, with Europe replacing emerging markets as the main overweight position. The risk, of course, is that the Fed fails to meet the market's aggressive easing expectations in the coming months, prompting the dollar to snap higher, global financial conditions to tighten, and a 'tactical' stock market correction to ensue, not only in the U.S. but around the world. Only time will tell, but what is clear is that markets are entering unfamiliar territory. With many equity markets at record highs, bond spreads at historic tights and key exchange rates at levels not seen in years, investors should tread carefully as this latest Fed easing cycle plays out. What could move markets tomorrow? Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/global-markets-trading-day-graphic-2025-09-17/

2025-09-17 20:53

Sept 17 (Reuters) - A worker has died in an accident in connection with a lifting operation at Equinor's (EQNR.OL) , opens new tab refinery at Mongstad, Norway, the company said in a press release on Wednesday. All non-critical activity on the plant has been stopped until further notice and the area has been cordoned off, the company said. Sign up here. The deceased was employed by Crane Norway, a supplier of crane and lifting services at Mongstad, Equinor said, adding relevant authorities have been notified of the incident and the police have initiated an investigation. According to Equinor's website, the Mongstad refinery is the largest oil refinery in Norway, with a processing capacity of approximately 12 million tonnes of crude oil annually. https://www.reuters.com/business/energy/norways-equinor-reports-one-dead-after-accident-mongstad-refinery-2025-09-17/

2025-09-17 20:48

Dow up 0.57%, S&P down 0.1%, Nasdaq down 0.32% Federal Reserve cuts interest rates by 25 basis points Fed projections show two more cuts for 2025 Sept 17 (Reuters) - The Nasdaq and the S&P 500 closed lower in choppy trading on Wednesday, after the U.S. Federal Reserve cut interest rates by an expected 25 basis points and Fed Chair Jerome Powell cited the weak job market. The Dow closed higher after meandering during Powell's speech. Sign up here. The central bank indicated it will steadily cut rates for the rest of the year as policymakers signaled concerns about weakness in the labor market. The Fed projected two more quarter-percentage-point cuts this year. In a press conference, Powell talked about the mounting downside risks of employment compared to inflation, but said inflation risks still must be assessed and managed. This rate cut was already priced in by investors, according to data compiled by LSEG. “Powell tempered some of the initial enthusiasm in the markets for a more aggressive path of monetary easing. He noted the softness in the labor market, but reserves a larger cut for more serious conditions that are not present today," said Michael Rosen, chief investment officer at Angeles Investments. "The Fed also raised its inflation forecast, highlighting the delicate balance between setting monetary policy to offset a weaker labor market versus bringing inflation lower," he said. The Dow Jones Industrial Average (.DJI) , opens new tab rose 260.42 points, or 0.57%, to 46,018.32, the S&P 500 (.SPX) , opens new tab lost 6.41 points, or 0.10%, to 6,600.35 and the Nasdaq Composite (.IXIC) , opens new tab lost 72.63 points, or 0.32%, to 22,261.33. Financial stocks like American Express (AXP.N) , opens new tab helped boost the Dow. The Fed's decision and outlook will test Wall Street's recent rally, which has been supported by rate-cut expectations and revived enthusiasm around AI-stock-linked trading. Powell fielded several questions about the Fed's independence from the executive branch. On Tuesday, White House economic adviser Stephen Miran was sworn in as a Fed Governor and an appeals court rejected U.S. President Donald Trump's attempt to sack Governor Lisa Cook. Nvidia (NVDA.O) , opens new tab weighed on the Nasdaq. Shares fell 2.6% after a report said China's internet regulator had instructed the country's biggest tech companies buying all of the AI leader's chips. Workday jumped 7.2% after a report that activist investor Elliott Management took a more than $2 billion stake in the human resources software provider. Lyft (LYFT.O) , opens new tab popped 13.1% on the news that Alphabet's (GOOGL.O) , opens new tab Waymo would launch autonomous cab rides in Nashville next year in with the ride-hailing firm. Shares in rival Uber (UBER.N) , opens new tab fell 5%. Declining issues outnumbered advancers by a 1.02-to-1 ratio on the NYSE and by a 1.1-to-1 ratio on the Nasdaq. The S&P 500 posted 18 new 52-week highs and five new lows while the Nasdaq Composite recorded 122 new highs and 45 new lows. Volume on U.S. exchanges was 18.91 billion shares, compared with the 16.47 billion average for the full session over the last 20 trading days. https://www.reuters.com/sustainability/sustainable-finance-reporting/wall-street-ends-mixed-trade-choppy-after-feds-rate-cut-outlook-2025-09-17/

2025-09-17 20:43

Fed signals start of monetary policy easing cycle Benchmark 10-year yields rise US dollar strengthens against peers Gold prices settle lower after hitting fresh peak Crude oil prices ease NEW YORK, Sept 17 (Reuters) - World stocks hit a record high in choppy trading with equities Wall Street ending mixed on Wednesday after the Federal Reserve delivered a widely expected interest rate cut and signaled the start of a monetary policy easing cycle. The Fed cut rates by a quarter of a percentage point and indicated it will steadily lower borrowing costs for the rest of this year. Only new Governor Stephen Miran, who joined the Fed on Tuesday and is on leave as head of the White House's Council of Economic Advisers, dissented in favor of a half-percentage-point cut. Sign up here. The S&P 500 and Nasdaq finished slightly lower while the Dow rose. The Dow Industrial Average (.DJI) , opens new tab rose 0.57% to 46,018.32, the S&P 500 (.SPX) , opens new tab fell 0.10% to 6,600.35 and the Nasdaq Composite (.IXIC) , opens new tab fell 0.32% to 22,261.33. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab was last down 0.10% to 975.84, after rising to a record high of 979.61. The pan-European STOXX 600 (.STOXX) , opens new tab index had ended down 0.03%. "The market’s reaction so far has been to sell on this news, which isn’t that surprising; what does surprise me is that the markets were as bullish going into this as they were," said Mark Malek, chief investment officer at SiebertNXT in New York. "I’m expecting more of a negative knee-jerk reaction, because there was a lot of excitement and a bit too much exuberance came in too soon." After the cut, Treasury yields initially erased gains and turned lower on the session before reversing course as Powell spoke. The benchmark U.S. 10-year note yield rose 4.6 basis points to 4.072%. The 2-year note yield, which typically moves in step with interest rate expectations for the Fed, rose 3.9 basis points to 3.51%. The 30-year bond yield rose 2.4 basis points to 4.669%. “I would say this is a mildly bullish report, as it shows that the Fed no longer has the hawkish bias it had earlier in the year. In the commentary, unemployment seems as much of a worry now as inflation,” said Chris Grisanti, chief market strategist at MAI Capital Management in New York. “The Fed lowered rates by 25 basis points – no surprise there – but the bigger news here is the huge dispersion in the ‘dot plot’ estimates as to where rates will be a year and two years from now," Grisanti added. Fed Chair Jerome Powell said in his subsequent press briefing that some of the more dire inflationary scenarios facing the economy have faded, adding that tariffs may be pushing up prices but it increasingly looks like it will be "a one-time price increase.” The U.S. dollar strengthened against major peers after the Fed's announcement and as Powell spoke to the press. The dollar strengthened 0.27% to 146.87 against the Japanese yen and was up 0.36% to 0.788 against the Swiss franc . The euro fell 0.38% to $1.1822 against the dollar . The dollar index rose 0.35% to 96.96. Gold prices hit a fresh record high after the Fed's decision. Spot gold was last down 0.82% to $3,659.10 an ounce after reaching a new peak of $3,707.40. U.S. gold futures for December delivery settled 0.2% lower at $3,717.80. Oil prices eased after data showing an increase in U.S. diesel stockpiles stoked worries about demand. Brent crude futures settled down 0.76% to $68.22 a barrel while U.S. West Texas Intermediate crude futures lost 0.73% to settle at $64.05. https://www.reuters.com/world/china/global-markets-wrapup-7-graphic-2025-09-17/

2025-09-17 20:29

MEXICO CITY, Sept 17 (Reuters) - Mexico will inject nearly $14 billion into highly indebted state oil company Pemex after it raised funds through two recent bond issuances on international markets, the nation's finance ministry said on Wednesday. The dollar-denominated and euro-denominated bond issues will largely go toward buying back $9.9 billion worth of Pemex bonds, the finance ministry said, after that buyback closed early because demand exceeded the offer. Sign up here. This will "smooth out" Pemex's debt maturity profile, the ministry said, as the state company had payments coming due in 2026 and 2027. Pemex is one of the world's most heavily indebted energy companies, with nearly $100 billion in financial debt and some $22 billion owed to suppliers and contractors. In August, the government rolled out a sweeping plan to end its handouts for the company by 2027. "The transactions will equivalently reduce Pemex's previously contracted foreign currency obligations, in order to stabilize the public company's debt at a level that will allow it to strengthen its credit and liquidity profile while reducing its financing costs," the ministry said in a statement. https://www.reuters.com/business/energy/mexico-inject-nearly-14-billion-into-pemex-after-fresh-debt-offers-2025-09-17/