Aurelia Butler

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Steelmakers have seen prices tumble in recent months in part due to customers, including automakers and suppliers, exercising caution in building raw material inventory as the workers strike against the Detroit Three automakers drags on. Nucor (NYSE:NUE)’s net sales declined 16% to $8.78 billion for the quarter ended Sept. 30 from a year ago, but came ahead of analysts’ estimates of $8.31 billion, as per LSEG data. Average sales price per ton in the reported quarter decreased 14% from last year.Nucor posted a quarterly net profit of $1.14 billion, or $4.57 per share, down from $1.69 billion, or $6.50 per share, last year. Analysts were expecting $4.25 per share.Shares of the company rose 1.43% in after-market trading. Last week, Steel Dynamics (NASDAQ:STLD) also reported a drop in third-quarter profit, as higher manufacturing costs and a fall in steel prices hit its bottom line. More

On Monday, Fed Chair Jerome Powell hinted at steady interest rates at the next meeting but did not rule out another hike if robust economic growth persists. This led to an aggressive steepening of the rates curve, with short-dated yields falling while longer-maturity ones hit new multiyear highs.Mike Schumacher of Wells Fargo Securities anticipates this high interest-rate volatility will persist until more clarity on the Fed’s long-term vision emerges and the Middle East situation stabilizes. Mohamed El-Erian from Allianz (ETR:ALVG) SE also attributes part of this uncertainty to the Fed’s difficulty in articulating a clear long-term vision for interest-rate policy.Geopolitical concerns over the potential expansion of the Israel-Hamas conflict throughout the Middle East have also contributed to price swings. Ongoing drone attacks in Iraq and Syria, missile firings towards Israel by Yemen’s Houthi rebels, and Israel’s strikes against Hamas and Hezbollah have led investors to seek safety in Treasuries. As a result, 10-year yields dropped from just below 5% to around 4.91% by week’s end.The rising U.S. debt issuance has also played a role in increasing long-end rates. Over the past three months, the term premium has risen by more than a point due to increased auction sizes announced by the Treasury. Traders are preparing for further increases at the Treasury’s next quarterly refunding on November 1.William Marshall from BNP Paribas (OTC:BNPQY) SA noted that the current volatility is creating more uncertainty. He suggested that a pause in Fed commentary this week, due to the central bank’s quiet period before the November 1 policy meeting, might offer traders some respite. However, key readings on price pressures in the economy are still due later this week, including Friday’s personal-consumption expenditures data and the University of Michigan inflation expectations survey. The upcoming week will also see a series of economic data releases as per the scheduled calendar, and several auctions as part of the auction calendar.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

The fund, which will be used to compensate states for losses in revenue in the tax reform, had a value set at 40 billion reais in the bill approved by the lower house. Haddad told reporters that the government will propose increasing it “by a little” without giving a figure. The reform is set to restructure the country’s complex consumption taxes and boost the potential growth of the economy. Earlier on Monday, Senator Eduardo Braga, who is in charge of the bill, said that the amount was still being negotiated, as state governors had their own counter-proposal.”If there is no agreement by tomorrow night, we will present the text with the proposal that has already been agreed with the government,” he said. “It will go up, it will, that’s one of the important changes,” he added. More

This data points towards a declining affordability and a shift in real estate market sentiment, particularly among first-time homebuyers, of whom 86.3% expressed concern. These findings come ahead of an expected rate decision from the Bank of Canada.The central bank’s economists anticipate that the policy rate will remain at five per cent, unchanged since the previous decision and a significant increase from 0.25% since March 2022. The survey respondents showed mixed reactions to the bank’s previous rate pause: 23.3% felt it positively impacted the real estate market, while 16.1% disagreed strongly and 38.8% remained neutral.Moreover, the survey also revealed strong disagreement with the Canadian government’s housing policy among 38.9% of respondents. This sentiment is particularly prevalent due to anticipated inventory challenges arising from the government’s plan to welcome approximately half a million newcomers annually in 2024 and 2025.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

The firm had previously anticipated potential rate hikes towards the end of 2021 or at the beginning of 2022. These predictions were in line with market expectations of an 18 basis point increase by March 2022.In other developments, Goldman Sachs recently opted to exit its short position on EUR/CAD due to the Canadian dollar’s risk sensitivity and ongoing global geopolitical concerns.Despite these moves, Goldman Sachs maintains a positive outlook on the future strength of the Canadian dollar. This optimism is bolstered by rising oil prices and steady economic performance from the United States, factors which they believe will contribute to the Canadian currency gaining strength against other currencies in the future.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More