Mortgage rates remained mostly unchanged after reaching a 22-year high earlier in the week, with only one average showing notable movement. The 30-year fixed-rate average stood at 7.67%, while other averages for different loan types also held steady or experienced minor fluctuations. It is advisable for borrowers to regularly compare rates among lenders to find the best option.
European shares hit three-week highs as investors were optimistic about China's stimulus measures, with miners leading the gains and Novo Nordisk hitting a fresh record high.
Fidelity International's Salman Ahmed predicts a recession due to high interest rates and the increasing costs of refinancing corporate debt that's becoming due in the next few years.
The French government has set aside €200 million to destroy surplus wine production in the country due to challenges caused by a fall in sales, changes in consumption habits, and the impact of the Covid-19 pandemic. The funding aims to support struggling wine producers and prevent prices from collapsing, while encouraging the industry to adapt to changing consumer patterns.
German exports fell slightly in July, raising concerns that the country's economy may be at risk of undoing previous gains, as global demand weakens and companies struggle with supply chain issues and eroding competitiveness.
The resumption of student loan payments this fall is expected to have a significant impact on mortgage affordability, exacerbating the already strained housing market in the US.
China's real estate market is experiencing a significant downturn, causing major developers to face massive losses and mounting debts, which is impacting the country's economy and global growth.
The South African rand strengthens against the US dollar as risk appetite returns to global markets due to falling US Treasury yields on the first day of the BRICS summit, although the summit is unlikely to provide significant or sustainable momentum until the bloc adopts implementable policies.
The number of people living in extreme poverty in developing Asia has increased by 67.8 million due to the COVID-19 pandemic and rising living costs, with more than 155 million people living on less than $2.15 a day last year, according to the Asian Development Bank.
President of the European Central Bank, Christine Lagarde, stated that interest rates in the European Union will need to remain high to combat inflation, despite progress being made, emphasizing the challenges posed by disruptions in the global and European economies.
Top economist David Rosenberg predicts that the US will experience a recession within the next six months due to the aggressive interest rate hikes by the Federal Reserve and the erosion of credit quality in credit card debt.
The Federal Reserve is considering whether to raise interest rates even higher to combat inflation, but some policymakers, like Raphael Bostic, believe it is unnecessary and advocate for keeping the rates at their current level until 2024.
India's foreign exchange reserves have fallen to a two-month low of $594.89 billion due to a decline of $7.27 billion, the largest weekly fall in over six months, as the rupee dropped to a 10-month low against the U.S. dollar.
Insured losses from Hurricane Idalia in Florida are estimated to be between $3 billion and $5 billion, with an additional $500 million in losses to the National Flood Insurance Program.
Weak manufacturing data in major economies led to a decrease in oil prices, despite a larger-than-expected drop in U.S. crude stocks, while market focus is on Federal Reserve Chair Jerome Powell's speech on interest rate outlook, and Iran's oil output is predicted to increase despite U.S. sanctions.
Short-term inflation in Pakistan increased by 25.34% on a year-on-year basis due to a surge in prices of kitchen items, although it decelerated from the previous week's rate of increase.
The UK economy recovered from the Covid-19 pandemic faster than previously thought, with revised data showing that UK GDP was actually 0.6% larger by the end of 2021 than in the final quarter of 2019, erasing Britain's laggard status; however, economists caution that this stronger data does not change the overall outlook for Britain's growth or provide relief to households facing high inflation and rising borrowing costs.
The Bank of Israel has maintained its benchmark interest rate but warned of potential rate hikes if inflation does not continue to moderate and the shekel weakens further. Despite signs of easing inflation, the central bank highlighted the possibility of higher borrowing costs in the future. The shekel has depreciated by over 8% against the US dollar this year, contributing to higher inflation. The bank sees the economy growing at a rate of 3% in 2023 and 2024 but warns of risks if the proposed judicial overhaul leads to increased risk premium and further devaluation of the shekel.
The BRICS alliance is set to expand to include Saudi Arabia, the UAE, Argentina, Egypt, Iran, and Ethiopia, posing a significant threat to the US and other developed nations as these developing countries strengthen and gain control over a larger portion of the global economy.
Americans are struggling to pay their bills as inflation rises, leading to a surge in credit card and auto loan defaults, which is expected to worsen with rising interest rates and the expiration of the student loan moratorium. Low- and middle-income earners are particularly affected, resorting to using credit cards for essential purchases, while opening new lines of credit to pay off debts, resulting in record-high credit card debt. The resumption of student loan payments and potential holiday season spending add to concerns about escalating debt levels.
Russian President Vladimir Putin has called for measures to control rising inflationary risks in the country and maintain a high level of industrial output, as he prepares for re-election and deals with the strain of military operations in Ukraine.
Pakistan's caretaker Prime Minister, Anwaarul Haq Kakar, expressed confidence that the country will overcome its economic challenges, emphasizing the need to bring the undocumented economy into the tax net and invest in human resources, during an interaction with a delegation of students from Harvard. He also discussed Pakistan's role in the USSR-Afghan war, highlighted the importance of democracy and emphasized the desire to establish a collaborative partnership with the US.
Zambia's Mopani Copper Mines experienced a decline in output, leading to increased losses in the first half of this year, which is further straining the company's finances after suffering a significant loss last year; however, plans are underway to sell the mines to potential buyers Sibanye Stillwater and Zijin Mining Group, with the new investor expected to invest in completing projects to raise copper output.
The Reserve Bank of Australia is expected to keep its key cash rate unchanged as inflation eases, while Asian markets show signs of revival due to China's efforts to support its property sector and wider economy.
The recent cable car incident in northern Pakistan highlights the crisis of school accessibility in the country, with poor roads, poverty, and extreme weather preventing many students from reaching school, contributing to Pakistan's low school attendance rate and hindering economic sustainability and security.
The U.S. federal deficit is projected to double this year to around $2 trillion, largely due to higher interest rates, lower tax revenue, and increased Social Security and Medicare costs.
Companies, employees, and governments worldwide are still grappling with how to adapt to changes in the workplace brought on by the pandemic, with stark differences emerging across continents and cultures, and Asian and European workers largely returning to offices at a faster pace than their American counterparts due to factors such as cultural expectations, reliable public transportation, and home office sizes.
Argentina plans to use a $7.5 billion disbursement from the International Monetary Fund to repay part of the money it borrowed from China through a currency swap line.
The steep increase in public debt worldwide over the past decade is unlikely to be reversed due to factors such as population aging, rising interest rates, and political challenges, according to a research paper presented at the Kansas City Federal Reserve's annual central banking symposium. Governments will need to manage high debt levels through spending limits, potential tax increases, and improved banking regulations.
Japan has criticized China's ban on Japanese seafood in response to the release of treated radioactive water from the Fukushima nuclear plant, calling it "totally unacceptable" and urging China to repeal the action.
China's housing crisis has led to a record number of defaults among the country's private developers, with 34 out of the top 50 developers experiencing delinquencies on offshore debt, and the remaining 16 facing a combined $1.48 billion of bond payments in September, raising concerns about a potential bond default by industry giant Country Garden and the potential ripple effects on the broader economy and social stability.
Germany's economy stagnated in the second quarter, solidifying its position as one of the world's weakest major economies, with factors including weak purchasing power, thin industrial order books, a slowdown in the Chinese economy, and the impact of aggressive monetary policy tightening contributing to the country's economic struggles.
China's services activity expanded at its slowest pace in eight months in August, as weak demand and stimulus measures failed to revive consumption, according to a private-sector survey.
Asian stocks are expected to open lower as traders focus on China's economic conditions and European shares fail to provide a strong lead, while oil and bond yields remain relatively high.
China's fiscal revenue growth slowed in the first seven months of 2023 due to signs of an economic slowdown, with fiscal revenue rising 11.5% compared to the previous year.
Goldman Sachs analysts predict that the U.S. government is "more likely than not" to shut down later this year due to spending disagreements, which could temporarily impact economic growth by reducing it by 0.15-0.2 percentage points per week, with past shutdowns having minimal impact on equity markets.
The BRICS nations have caught up with the G7 in terms of collective GDP, but still lag behind in terms of GDP per capita, according to the IMF.
Thailand's new prime minister, Srettha Thavisin, must deliver on his promises to revive the economy, support small businesses, and address inequality after the country reported slower-than-expected economic growth and faces challenges such as a slowdown in China, high household debt, and rising interest rates.
US Secretary of Commerce Gina Raimondo's visit to China will test the sincerity of the US in pursuing dialogue, particularly regarding the country's restrictions on tech exports, according to Chinese experts. Both sides remain committed to dialogue despite strained bilateral relations, but the US must demonstrate actual efforts rather than just rhetoric to improve economic and trade relations.
First Lady Jill Biden has tested positive for Covid-19 and is currently experiencing mild symptoms, while President Joe Biden has tested negative; concerns are growing about the Pirola variant of Covid-19, which is reported to be causing higher infections and may have a higher potential for breakthrough infections than previous strains.
The rupee's decline against the US dollar is being attributed to the powerful influence of the grey market and the International Monetary Fund's involvement in Pakistan's financial system, leading to a loss of control over the exchange rate and economic uncertainties.
U.S. Treasury yields rose as investors assessed the impact of recent economic data and speculated on the future of Federal Reserve monetary policy.
Most Asian stocks fell on Tuesday due to concerns over slowing growth in China, a property sector meltdown, and hot inflation readings, which raised concerns over higher interest rates. Chinese stocks were the worst performers, with investors growing impatient with Beijing's slow approach to stimulus measures.