(Bloomberg) — The Bank of England stepped up efforts to beat back the worst inflation since the 1980s by boosting interest rates half a percentage point to the highest level in 15 years.
Economy
Charting the Global Economy: BOE Surprises With Bigger Rate Hike
Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:
World
In addition to the UK, Norway raised its benchmark rate a half point to 3.75%, while central banks in Indonesia, the Philippines, Mexico and Brazil left borrowing costs unchanged. The Swiss National Bank delivered its smallest hike since policy tightening began a year ago, while saying more action is likely.
Europe
UK core inflation, which excludes food and energy, accelerated unexpectedly to a 31-year high of 7.1% in May, helping explain the BOE’s decision to raise interest rates a half percentage point. Separate data showed government debt now exceeds the size of the UK economy for the first time since 1961, imperiling Prime Minister Rishi Sunak’s promise to restore health to the public finances and cut inflation.
Economic momentum in the euro area almost came to a halt in June, signaling an end to the revival the bloc demonstrated since its winter downturn. A purchasing managers index compiled by S&P Global fell to a five-month low.
Asia
South Korean exports offered an early sign of improvement in global trade after their first year-on-year gain since last summer. Preliminary trade figures showed a 5.3% gain in exports in the first 20 days of June from a year ago for the first increase since August, a possible sign that a slowdown in world demand is starting to ease.
Singapore’s core inflation rate cooled in May to the lowest in 11 months, helped by a deceleration in transport and food prices.
US
Sales of previously owned homes barely rose in May as high mortgage rates continued to crimp demand and discourage owners from listing their properties. The median selling price declined 3.1% from a year earlier, the most since 2011, to $396,100. That’s still historically elevated for the month and reflective of limited supply.
The so-called Great Retirement is looking a little less great lately, as stalled house prices and the rising cost of living push some older workers back into the labor force, new research shows.
Emerging Markets
Mexico kept borrowing costs unchanged for a second month as the central bank vows to maintain its restrictive stance over the coming months while inflation continues to show signs of cooling.
Egypt looked past a pick-up in inflation to keep interest rates unchanged for a second month, with the central bank’s next bout of monetary tightening likely hinging on the country’s ability to secure the foreign exchange needed to manage another currency devaluation.
—With assistance from Philip Aldrick, Leda Alvim, Maya Averbuch, Katia Dmitrieva, Tarek El-Tablawy, John Gittelsohn, Hooyeon Kim, Shawna Kwan, Andrew Langley, Mirette Magdy, Tom Rees, Augusta Saraiva, Michael Sasso, Jack Sidders, Kevin Varley, Alexander Weber and Natalie Wong.
Economy
S&P/TSX composite gains almost 100 points, U.S. stock markets also higher
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
Economy
Statistics Canada reports wholesale sales higher in July
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
The Canadian Press. All rights reserved.
Economy
S&P/TSX composite up more than 150 points, U.S. stock markets mixed
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
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