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CNBC
4 days ago
- Business
- CNBC
Gold eases as investors await US payroll data for Fed policy clues
Gold fell on Thursday as investors held back from making significant bets, awaiting the U.S. payroll data later in the day for insights into the Federal Reserve's policy direction. Spot gold lost 0.3% to $3,346.47 per ounce, as of 0211 GMT, while U.S. gold futures edged down 0.1% to $3,357.20. Gold appears to be consolidating at present within $3,320 to $3,360 range, with the market adopting a wait-and-see approach ahead of U.S. Non-Farm Payroll and ISM Services PMI data, rather than taking significant positions, OANDA senior market analyst Kelvin Wong said. Data released by ADP showed U.S. private payrolls dropped by 33,000 jobs in June, marking the first decline in more than two years, as economic uncertainty hampered hiring. Meanwhile, low layoffs continued to anchor the labour market. Investors are now awaiting the non-farm payrolls report on Thursday, which is expected to show an addition of 110,000 jobs in June, down from 139,000 in May, according to a Reuters poll. Meanwhile, the U.S. will impose a lower-than-promised 20% tariff on various goods from Vietnam, President Donald Trump announced on Wednesday. The Southeast Asian nation is the U.S.' tenth-largest trading partner. "The Vietnam trade deal has likely already been priced into the market, and I think the primary concern now is the status of other deals with major economies that are still in the limbo," Wong said. The U.S. and India negotiators pushed to finalise a tariff-reducing deal ahead of Trump's July 9 deadline. Trump has indicated no signs of extending the negotiation deadline despite stalled discussions with Japan, another key trade partner, but expressed optimism about an India deal. Non-yielding gold tends to perform well during economic uncertainty and in a low-interest-rate environment. Spot silver fell 0.6% to $36.37 per ounce, platinum lost 1.5% to $1,397.91 and palladium shed 1.4% to $1,138.73.
New Straits Times
4 days ago
- Business
- New Straits Times
Gold eases as investors await US payroll data for Fed policy clues
KUALA LUMPUR: Gold fell on Thursday as investors held back from making significant bets, awaiting the US payroll data later in the day for insights into the Federal Reserve's policy direction. Spot gold lost 0.30 per cent to US$3,346.47 per ounce, as of 0211 GMT, while US gold futures edged down 0.10 per cent to US$3,357.20. Gold appears to be consolidating at present within the US$3,320 to US$3,360 range, with the market adopting a wait-and-see approach ahead of US Non-Farm Payroll and ISM Services PMI data, rather than taking significant positions, OANDA senior market analyst Kelvin Wong said. Data released by ADP showed US private payrolls dropped by 33,000 jobs in June, marking the first decline in more than two years, as economic uncertainty hampered hiring. Meanwhile, low layoffs continued to anchor the labour market. Investors are now awaiting the non-farm payrolls report on Thursday, which is expected to show an addition of 110,000 jobs in June, down from 139,000 in May, according to a Reuters poll. Meanwhile, the US will impose a lower-than-promised 20 per cent tariff on various goods from Vietnam, President Donald Trump announced on Wednesday. The Southeast Asian nation is the US' tenth-largest trading partner. "The Vietnam trade deal has likely already been priced into the market, and I think the primary concern now is the status of other deals with major economies that are still in the limbo," Wong said. US and India negotiators pushed to finalise a tariff-reducing deal ahead of Trump's July 9 deadline. Trump has indicated no signs of extending the negotiation deadline despite stalled discussions with Japan, another key trade partner, but expressed optimism about an India deal. Non-yielding gold tends to perform well during economic uncertainty and in a low-interest-rate environment. Spot silver fell 0.60 per cent to US$36.37 per ounce, platinum lost 1.50 per cent to US$1,397.91 and palladium shed 1.40 per cent to US$1,138.73.
Business Recorder
4 days ago
- Business
- Business Recorder
Gold eases as investors await US payroll data for Fed policy clues
Gold fell on Thursday as investors held back from making significant bets, awaiting the U.S. payroll data later in the day for insights into the Federal Reserve's policy direction. Spot gold lost 0.3% to $3,346.47 per ounce, as of 0211 GMT, while U.S. gold futures edged down 0.1% to $3,357.20. Gold appears to be consolidating at present within $3,320 to $3,360 range, with the market adopting a wait-and-see approach ahead of U.S. Non-Farm Payroll and ISM Services PMI data, rather than taking significant positions, OANDA senior market analyst Kelvin Wong said. Data released by ADP showed U.S. private payrolls dropped by 33,000 jobs in June, marking the first decline in more than two years, as economic uncertainty hampered hiring. Meanwhile, low layoffs continued to anchor the labour market. Gold prices up on weaker dollar Investors are now awaiting the non-farm payrolls report on Thursday, which is expected to show an addition of 110,000 jobs in June, down from 139,000 in May, according to a Reuters poll. Meanwhile, the U.S. will impose a lower-than-promised 20% tariff on various goods from Vietnam, President Donald Trump announced on Wednesday. The Southeast Asian nation is the U.S.' tenth-largest trading partner. 'The Vietnam trade deal has likely already been priced into the market, and I think the primary concern now is the status of other deals with major economies that are still in the limbo,' Wong said. The U.S. and India negotiators pushed to finalise a tariff-reducing deal ahead of Trump's July 9 deadline. Trump has indicated no signs of extending the negotiation deadline despite stalled discussions with Japan, another key trade partner, but expressed optimism about an India deal. Non-yielding gold tends to perform well during economic uncertainty and in a low-interest-rate environment. Spot silver fell 0.6% to $36.37 per ounce, platinum lost 1.5% to $1,397.91 and palladium shed 1.4% to $1,138.73.
Yahoo
27-06-2025
- Business
- Yahoo
3 Resilient Consulting Stocks to Consider Amid Industry Woes
Ongoing geopolitical tensions, tariff-related uncertainties, and fears of a prolonged economic slowdown through 2026 are clouding the outlook for the Zacks Consulting Services industry. Budget cuts, delayed enterprise decision-making, and tightening client discretionary spending have further weighed on near-term prospects. However, strong demand for AI-driven transformation and a corporate push for cost optimization continue to serve as a saving grace. In this context, Stantec Inc. STN, CBIZ, Inc. CBZ, and Charles River Associates CRAI stand out as potential frontrunners, leveraging innovation and operational efficiency to stay ahead in a challenging environment. About the Industry Companies grouped under the Consulting Services category offer professional advice in management, IT, human resources, environmental regulations, logistics and marketing, and real estate, serving multiple end markets. The industry focuses on channeling money and efforts toward more effective operational components, such as technology, digital transformation, and data-driven decision-making. To position themselves suitably in the post-pandemic era and better utilize the opportunities that an economic recovery will bring, service providers are increasing their efforts to formulate and reassess strategic initiatives, identify sources of demand, and target end markets. What's Shaping the Future of the Consulting Services Industry? This multi-billion-dollar industry is poised to continue its exponential growth beyond 2025, building on the momentum gained since the 2008 financial crisis and maintaining steady revenues, profit and cash-flow expansion. Consequently, this trend is expected to enable most industry players to sustain or even enhance their stable dividend payouts. The consulting services industry is expected to remain one of the least affected by future crises, building on its resilience shown during the pandemic and its after-effects. This is because even in volatile situations, organizations will continue to require extensive advice on protecting their employees and staying closer to consumers and shareholders. The industry, being one of the earliest pioneers of remote working — which has now become a permanent aspect of the work culture — is well-positioned for the future. The nature of work will continue to enable industry players to function efficiently through the increased and evolving use of technology. The recent slowdown in economic activity is weighing on the consulting industry, albeit likely temporarily. According to the third estimate released by the Bureau of Economic Analysis, GDP declined at an annual rate of 0.5% in the first quarter of 2025, following a 2.4% increase in the fourth quarter of 2024. In addition, services-sector activity contracted in May for the first time since June 2024, with the ISM Services PMI slipping to 49.9, just below the 50% threshold that separates expansion from contraction. This marks only the fourth time in 60 months the services sector has contracted since the post-COVID recovery began in June 2020. The deceleration reflects cautious corporate spending and project delays amid macroeconomic uncertainty, but underlying demand for long-term transformation and advisory services remains intact. Zacks Industry Rank Signals Challenging Outlook The Consulting Services industry, housed within the broader Business Services sector, currently carries a Zacks Industry Rank #165. This rank places it in the bottom 32% of 244 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates solid near-term growth prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. Before we present a few stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock market performance and current valuation. Industry's Price Performance The Consulting Services industry has underperformed the S&P 500 composite and the broader sector in the past year. The industry has lost 8.3% against the S&P 500 composite's rally of 11.3% and the broader sector's rise of 11.9%. Industry's Current Valuation On the basis of the forward 12-month price-to-earnings (P/E), which is a commonly used multiple for valuing consulting services companies, we see that the industry is currently trading at 24.51X, above the S&P 500's 22.13X and the sector's 21.94X. Over the past five years, the industry has traded as high as 31.12X and as low as 22.03X, with a median of 26.5X, as the charts below show. 3 Consulting Services Stocks to Consider Stantec: The company provides professional services in the areas of infrastructure and facilities. It remains well-positioned for continued success, supported by industry resilience and effective internal strategies. The company benefits from strong macroeconomic and structural drivers while maintaining sharp execution on its projects, enabling margin expansion and earnings growth. Stantec operates in a resilient sector shaped by long-term global needs, including water security, aging infrastructure, climate change response, advanced manufacturing and emerging technologies. These trends are expected to sustain strong project demand across regions. Stantec's consistent focus on high-quality project execution and addressing clients' most urgent infrastructure and sustainability challenges supports steady growth. This disciplined approach continues to drive margin improvement and robust earnings performance. The Zacks Consensus Estimate for the company's 2025 EPS increased nearly 1% in the past 30 days to $3.86. STN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. CBIZ: With its service breadth and specialized expertise, this provider of financial, insurance and advisory services has established itself as one of the largest professional services providers for middle-market businesses, solidifying its competitive edge and long-term growth potential. CBIZ is entering a strong growth phase, fueled by strategic expansion and a reinforced market position. The integration of Marcum is expected to unlock new synergies, enhance service offerings, and strengthen relationships with clients and stakeholders. The Marcum transaction significantly expands CBIZ's capabilities and client base, positioning the firm for broader market reach and cross-selling opportunities. The Zacks Consensus Estimate for the company's 2025 EPS has remained unchanged at $3.62 in the past 30 days. CBIZ currently carries a Zacks Rank #3. Charles River Associates: The company offers economic, financial, and management consulting services worldwide. CRAI, as a relatively small player in the consulting and research services sector, presents a compelling narrative when evaluating its market position and growth potential. The company has carved out a niche with its strong reputation for delivering high-quality analytical and strategic consulting services across diverse industries. Despite its size, CRAI benefits from the growing demand for specialized advisory services in an increasingly complex global marketplace. Its ability to attract top talent, combined with a focus on innovation and client-centered solutions, positions it for significant growth. As industries grapple with rapid technological advancements, regulatory complexities, and evolving market dynamics, CRAI's expertise could see rising demand, allowing it to capture a larger share of its addressable market. Additionally, its proven track record of delivering value to clients may help it sustain long-term partnerships, further bolstering its growth trajectory. Given the nature of the business, CRAI's success depends on the talent that it can acquire and retain. The company has built and sustained a strong reputation for delivering high-quality consulting services, driven by its highly qualified professionals. Around 74% of its senior staff hold advanced degrees, including doctorates, and are recognized field leaders. At the end of 2024, CRAI had 946 consulting staff, comprising 151 officers, 552 other senior staff and 243 junior staff. The Zacks Consensus Estimate for the company's 2025 EPS has remained unchanged at $8 in the past 30 days. CRAI currently carries a Zacks Rank #3. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stantec Inc. (STN) : Free Stock Analysis Report Charles River Associates (CRAI) : Free Stock Analysis Report CBIZ, Inc. (CBZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Kuwait Times
12-05-2025
- Business
- Kuwait Times
Fed holds rates steady and adopts ‘wait-and-see' stance on trade war
US-UK trade deal eases auto/agricultural tariffs, signaling cautious de-escalation KUWAIT: The US services sector expanded in April with the ISM PMI coming in at 51.6, lifted by new orders and inventories, though employment contracted, and tariff-driven price pressures hit a 27-month high. The Federal Reserve held rates steady at 4.25 percent-4.50 percent, citing trade uncertainty as aggressive tariffs risk stagflationary pressures, while unemployment claims dipped to 228,000. A preliminary US and UK trade deal eased auto/agricultural tariffs, signaling cautious de-escalation, though existing China tariffs remain. The Bank of England cut rates to 4.25 percent to counter slow growth, while China's services sector came in at 50.7 amid weak exports and rising costs. Japan's services PMI rose to 52.4 on stronger demand, but input costs surged and optimism declined. Globally, central banks tread carefully as trade tensions inflame inflation risks while suppressing growth, leaving markets balancing fragile optimism against looming stagflation threats. The ISM Services PMI in the US rose to 51.6 in April 2025, up from 50.8 in March and beating expectations of 50.2, signaling a stronger expansion in the services sector. Growth was driven by faster increases in new orders and inventories, while business activity remained positive despite a slight slowdown. Employment continued to shrink, though at a slower rate, and supplier delivery times lengthened. Price pressures surged to their highest level since February 2023. Concerns over tariff-related price impacts and federal budget cuts persist, but overall conditions are improving, according to ISM's Steve Miller. Federal funds rate In its latest policy meeting last Wednesday, the Federal Reserve opted to keep interest rates unchanged at 4.25 percent to 4.50 percent, emphasizing a cautious 'wait-and-see' approach as trade tensions cloud the economic outlook. Chair Jerome Powell highlighted that while the economy and labor market remain broadly solid, the Fed will refrain from adjusting rates until it gathers more clarity on the evolving impact of recent tariff policies. The decision comes amid a surge in imports aimed at beating new tariffs, a trend that may have distorted Q1 GDP figures. Powell pointed to the Trump administration's aggressive trade measures as a major source of economic uncertainty, warning that rising tariffs risks pushing inflation higher while simultaneously slowing growth, an unfavorable scenario that could leave the Fed's dual mandate out of reach. Meanwhile, President Donald Trump hinted that there will be a deal with a 'big' country announced on Thursday, adding that he would not lower tariffs on China as a condition to begin negotiations. Markets reacted positively on Wednesday with the Dow Jones, S&P 500, and Nasdaq indices ending the trading day with positive gains. Unemployment claims US jobless claims decreased by 13,000 to a seasonally adjusted 228,000 for the week ending May 3rd, following a prior week surge partly due to a 15,089 jump in unadjusted claims in New York. This previous increase was linked to layoffs across transportation, warehousing, hospitality, public administration, and education sectors. President Trump's tariffs include a significant hike to 145 percent on some Chinese imports. Federal Reserve Chair Jerome Powell noted that these 'significantly larger than anticipated' tariff increases could lead to a rise in inflation, a slowdown in economic growth, and an increase in unemployment, with the current Fed benchmark interest rate remaining in the 4.25 percent-4.50 percent range. Trump speaks President Trump announced a trade agreement framework with the UK, seen as a potential model for easing US tariffs. While details are still being finalized, the deal includes reduced tariffs on UK cars and agricultural products, and a joint tariff on steel and aluminum, with pharmaceutical exemptions. However, it's more of a 'letter' of understanding than a comprehensive deal, and existing universal tariffs remain. The announcement, which surprised some UK officials, was met with positive market reactions, though analysts note the limited scope and potential for only small economic gains for the UK. Trump emphasized that this is the first of many upcoming trade deals. Simultaneously, the US is engaging with China, with upcoming meetings aimed at de-escalating trade tensions, despite Trump's refusal to lower existing tariffs beforehand. These developments are viewed as potential signs of de-escalation in Trump's broader trade policies, which have drawn criticism from economists and global institutions concerned about their negative impact on the global economy and potential for a US recession. The greenback was last seen trading at 100.339. UK official bank rate Amidst a sluggish economy and concerns over President Trump's trade policies, the Bank of England (BoE) lowered its main interest rate from 4.5 percent to 4.25 percent on Thursday. This decision, anticipated due to easing inflation (down to 2.6 percent in March), aims to ease financial pressures for borrowers, businesses, and consumers. While five of the nine policymakers supported the 0.25 percent cut, some favored a larger reduction, and others preferred no change. The BoE highlighted the increasing uncertainty in global trade due to tariffs, noting a weakened outlook for global growth, though expecting a smaller impact on the UK. This rate cut is expected to stimulate investment, spending, and housing activity, benefiting those with loans but potentially disadvantaged savers. The GBP/USD currency pair was last seen trading at 1.3304 China services PMI China's Caixin Services PMI fell to 50.7 in April 2025 from 51.9 in March, missing expectations and marking the weakest growth since September. New orders rose at the slowest pace in over two years, hindered by US tariffs affecting goods trade. Export growth was minimal, while employment fell for the second month amid rising cost pressures. Input costs rose sharply due to higher wages and materials, but output prices declined for the third straight month as firms tried to stay competitive. Business confidence dropped to its second-lowest level since records began in 2005, reflecting concerns over trade policy shifts. The USD/CNY currency pair was last seen trading at 7.2364 Japan services PMI The au Jibun Bank Japan Services PMI for April 2025 was revised up to 52.4 from 52.2, indicating continued expansion for the sixth straight month and improving from March's neutral 50.0. New orders rose at the fastest rate in nearly a year, supported by ongoing, though slower, overseas demand. Hiring accelerated to its quickest pace since January, while backlogs increased modestly. Input costs surged at the fastest rate since February 2023, and output prices rose as firms passed on some costs. Despite this growth, business optimism dropped to its lowest since January 2021 due to concerns over global trade, labor shortages, and inflation. The USD/JPY currency pair was last seen trading at 145.34 Kuwait Kuwaiti dinar USD/KWD closed last week at 0.30645
