Key global financial headlines from overnight and this morning include:
1. **US Consumer Sentiment Declines for Fifth Straight Month, Labor Market Views Darken** US consumer confidence fell for a fifth consecutive month as views on the labor market and business conditions turned pessimistic. The Conference Board's index dropped to 89.1 from 92.9, marking the longest decline since 2008. The present situation gauge hit a February 2021 low of 116.8, while the expectations index remained flat.
2. **Trump Says Fed Chair Should Cut Rates Amid Strong Markets** Former President Trump stated he expects the next Fed chair to lower interest rates when markets perform well, signaling his push for a rate-cut-focused successor to Powell. Trump criticized the current dynamic where positive economic news triggers market sell-offs due to fears of rate hikes.
3. **Gold & Silver Extend Record Rally as Safe-Haven Demand Surges** February gold futures rose 0.8% to $4,505.70/oz, hitting an all-time high of $4,530.80 intraday, while spot gold gained 1.03%. March silver futures jumped 4.46% to $71.62/oz, with spot silver breaching $70 for the first time. The rally reflects AI bubble concerns and Fed leadership uncertainty.
4. **Citadel to Return $5B in Hedge Fund Profits to Clients** Ken Griffin's Citadel will return about $5B from 2025 gains, reducing AUM to $67B. Its flagship fund returned 9.3% YTD through Dec. 18—its weakest since 2018. Unlike prior years, most clients kept profits reinvested in 2024 after a 15% return.
5. **Yen Weakness: Will Japan Intervene? Key Triggers Unclear** Markets brace for potential Japanese intervention as the yen hit an 11-month low against the dollar. Finance Minister Katayama warned against speculative moves but didn't specify an exchange-rate threshold, noting action would target "disorderly" moves rather than specific levels.
6. **Fed Chair Contender Hassett: US "Far Behind" on Rate Cuts** White House economist Kevin Hassett argued the Fed remains too slow to cut rates despite Q3's 4.3% GDP growth (1.5pts attributed to Trump-era tariffs). The potential Powell successor cited AI-driven growth and disinflationary pressures.
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