Market Hightlights
- World stocks rebound as US recession ends
- Foreign central banks US debt holdings rose in week
World stocks rebound as US recession ends
World stocks recovered from three-week lows on Thursday after U.S. gross domestic product data showed the world’s biggest economy emerged from recession in the third quarter at a slightly faster pace than expected. The data, showing annualised growth of 3.5 percent in Q3 compared with a forecast for 3.3 percent, reassured investors who had feared this year’s recovery may run out of steam and yet the pace of growth is unlikely to be enough to prompt tighter monetary and fiscal policy yet, traders said.
Foreign central banks US debt holdings rose in week
Foreign central banks’ holdings of U.S. Treasuries at the Federal Reserve rose in the latest week while agency debt holdings fell, data from the U.S. central bank showed on Thursday. The combined holdings of Treasuries and agency securities by foreign central banks at the Fed rose by $4.863 billion to total $2.898 trillion in the week ended October 28.
Treasuries held by overseas central banks at the Fed rose $8.651 billion to total $2.137 trillion. Foreign central banks’ holdings of securities issued or guaranteed by the two biggest U.S. mortgage financing agencies, Fannie Mae and Freddie Mac, fell by $3.788 billion to $760.51 billion in the latest week.
Overseas central banks, particularly in Asia, have been huge buyers of U.S. debt in recent years and own more than a quarter of marketable Treasuries.
By Ivan Heng, Account Mananger
Trackback: | Share this article:
