2025-08-18 11:38

Aug 18 (Reuters) - Hindustan Zinc (HZNC.NS) , opens new tab will spend 38.23 billion rupees ($437.5 million) to set up a metals reprocessing plant, the Indian miner said on Monday, as a part of its plans to ramp-up capacity. The new plant, with a processing capacity of 10 million tons per annum, will recover metal from tailing dumps - a phrase used to refer to the piles of waste left behind after the metal is extracted from ores. Sign up here. The factory will boost the company's overall mineral recovery, Hindustan Zinc added in its statement, helping its larger aim of doubling its annual capacity to 2 million tons. In June, Hindustan Zinc announced investment plans of $1.39 billion to set up a metals complex in the northwestern state of Rajasthan, where it already operates a zinc smelter. ($1 = 87.3740 Indian rupees) https://www.reuters.com/world/india/indias-hindustan-zinc-invest-438-million-build-reprocessing-plant-2025-08-18/

2025-08-18 11:26

Odds of Fed cut in September a tad lower at 83% Zelenskiy flies to Washington on Monday to meet Trump Focus on Fed's Jackson Hole symposium for rate clues MUMBAI, Aug 18 (Reuters) - The dollar gained on Monday ahead of a meeting between U.S. President Donald Trump and his Ukrainian and European counterparts, while focus also turned to the Federal Reserve's Jackson Hole symposium for policy cues. The euro was down 0.2% against the dollar at $1.1680, the yen slipped by a similar magnitude to 147.445, while the British pound was down about 0.1% at $1.3544. Sign up here. The paring of wagers on a rate cut by the Fed next month helped the dollar find some support amid otherwise muted moves in foreign exchange markets on Monday. Money markets are now pricing in an 83% chance the Fed will ease rates by a quarter point next month, as traders pulled back wagers on the certainty of a cut after a raft of data including a jump in U.S. wholesale prices last month and a solid increase in July's retail sales figures. Fed Chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework at the Jackson Hole symposium between August 21 and 23. MUFG expects the U.S. central bank to cut rates in September as well, but it's unlikely that the Fed chair will give a clear signal towards that later this week, said Lee Hardman, senior currency analyst at MUFG Bank. Powell's last speech to the conference before his term ends next May comes as he looks to straddle the Fed's twin goals of stable prices and low unemployment. Inflation in the U.S. is running above the central bank's target while recent data has also pointed to a slowing of the labour market. "There is a majority expectation of further dollar weakness, but the minority, who would rather buy at current levels and don’t see convincing evidence of weak U.S. growth, has a reasonable following too," Kit Juckes, chief FX strategist at Societe Generale, said in a Monday note referring to interactions with clients. The dollar was up 0.1% against a basket of peers on Monday but has declined over 9.5% over 2025 so far. The main event for investors on Monday is a White House meeting between Trump and Volodymyr Zelenskiy, who will be joined by some European leaders, as Washington presses Ukraine to accept a quick peace deal to end Europe's deadliest war in 80 years. Trump had met his Russian counterpart Vladimir Putin on Friday and agreed that a peace deal should be worked upon without a ceasefire. "Financial markets are continuing to trade like there could be some – still undetermined – path to peace," an ING analyst note said. "With risk assets bid and energy prices offered, we expect the dollar to stay under a little pressure as dollar-based investors continue to put money to work," the note said. Trump told Ukraine to give up hopes of getting back annexed Crimea or joining NATO as he prepared to host Zelenskiy and European leaders in Washington to press Kyiv into accepting a peace deal with Russia. In other currencies, the Swiss franc was little changed at 0.80965 while the Australian dollar rose 0.1% to $0.6515 and the New Zealand dollar rose 0.2% to $0.5941. Cryptocurrency bitcoin halted its towering rally and eased from a record high. It last traded 2.2% lower at $115,129.46. Ether similarly slid 4.6% to $4,275.85, after hitting its highest in nearly four years last week. https://www.reuters.com/world/middle-east/dollar-firms-heading-into-busy-week-geopolitics-fed-speak-2025-08-18/

2025-08-18 11:23

US stagflation would hit bonds and stocks globally Equities far from pricing in US stagflation risks Gold, some inflation-linked products might offer refuge LONDON, Aug 18 (Reuters) - The spectre of U.S. stagflation is stalking global markets, causing some investors to position portfolios to dodge the potential damage that tariffs could wreak on growth and inflation in the world's dominant economy. Some 70% of global investors surveyed by BofA Global Research in early August said they expect stagflation - the combination of below trend growth and above trend inflation - in the next 12 months. Sign up here. Recent data showing U.S. labour market weakness, a sharp rise in U.S. core inflation and an unexpected surge in producer prices justifies this concern. But stocks around the world, including in the United States, remain near record highs and bond markets are calm, suggesting little panic even as U.S. stagflation risks move increasingly onto the radar. "Stagflation is in the mind of the market, but not the price," said Carmignac fixed income manager Marie-Anne Allier. Here's a rundown of how U.S. stagflation risks could play out across global markets. BEWARE BONDS Persistent inflation, or the fear of it, can pummel longer-dated bonds by eroding the real value of fixed interest payments over time. Paul Eitelman of Russell Investments, which helps institutions manage more than $1 trillion of assets, said pension funds and insurers have become increasingly nervous about inflation hitting their bond portfolios. "If we had a another very weak employment report, that would significantly ramp up (U.S. stagflation) concerns," he added. Nor would non-U.S. bonds offer much protection. "Interest rates and the long end of the bond curve are highly correlated between the G7 economies," said Mayank Markanday, portfolio manager at Foresight Group. "If you see a big selloff in the long end of the U.S. curve we are likely to see impact on some of the others." There has already been a selloff in long-dated bonds across major markets. While 2-year yields are lower in the U.S., Germany and Britain this year, 30-year yields are higher. If sticky inflation stops the Federal Reserve from cutting rates this year, short-dated bonds would suffer too. WALL STREET WOES Fidelity International multi-asset manager Caroline Shaw said the group expected U.S. growth to slow and stagflation was one of their two core scenarios. She remains positive on U.S. big tech stocks but in mid-July bought derivatives called put options that would profit should the more cyclical Russell 2000 small cap index fall. (.RUT) , opens new tab As with bonds, stocks globally are likely to suffer, even if stagflation is confined to the U.S. Since 1990, world stocks (.MIWD00000PUS) , opens new tab have fallen by an average of 15% at times when U.S. manufacturing activity data showed both a contraction and higher than average prices, according to State Street head of macro strategy Michael Metcalfe. But stocks keep surging for now, which Metcalfe says suggests investors think "the disruption to the global trading system isn't going to disrupt big tech earnings." Markets are ignoring bad news and focusing on the good, said Man Group chief market strategist Kristina Hooper. "It's like parenting, you only want to see the best in your children, and we're at a stage where it's possible for markets to do that," she said. SELL THE DOLLAR Nabil Milali, multi-asset and overlay portfolio manager at Edmond de Rothschild Asset Management, is another investor who says data shows the U.S. economy is heading for stagflation. He anticipated further weakness in the dollar against the euro . Stagflation presents twin risks for the greenback, said Milali, because weak growth can devalue a currency and persistent inflation erodes its purchasing power abroad. The euro is up over 12% against the dollar so far this year. Other currencies like the Japanese yen and Britain's pound have also strengthened. BUY WHAT, THEN? Here's where it gets harder, but stagflation could provide another reason to keep buying gold, already the go-to asset class for investors worried about a variety of risks, said Man Group's Hooper. Other assets that offer protection against inflation could be attractive, such as short-dated inflation linked bonds, said Foresight Group's Markanday. Professional investors are turning to complex derivatives products like inflation swaps, which rise in value when price indices exceed a certain level, Russell's Eitelman said. The U.S. two-year inflation linked swap is near its highest in over two years. https://www.reuters.com/business/global-markets-stagflation-graphic-2025-08-18/

2025-08-18 11:18

BUDAPEST, Aug 18 (Reuters) - Russian crude oil flows to Hungary and Slovakia via the Druzhba pipeline were halted on Monday, officials in Hungary and Slovakia said, with Budapest blaming a Ukrainian attack on a transformer station. Unlike most other EU countries, Hungary has kept up its reliance on Russian energy since Moscow's invasion of Ukraine. It imports most of its crude via the Druzhba pipeline, which runs through Belarus and Ukraine to Hungary and also Slovakia. Sign up here. Szijjarto wrote on Facebook that he had talked to Russian Deputy Energy Minister Pavel Sorokin who told him that experts were working to restore the transformer station, but it was unclear when deliveries would resume. "This latest strike against our energy security is outrageous and unacceptable," Szijjarto wrote. He did not say when or where the attack took place. Ukrainian Foreign Minister Andrii Sybiha neither confirmed nor denied the account of the attack, but wrote on X that Hungary "can now send complaints" to Moscow, not Kyiv. "It is Russia, not Ukraine, who began this war and refuses to end it. Hungary has been told for years that Moscow is an unreliable partner. Despite this, Hungary has made every effort to maintain its reliance on Russia," Sybiha wrote. Slovak pipeline operator Transpetrol confirmed that the supply of oil to Slovakia through the Druzhba pipeline had stopped. "Our company does not know more information about the reason for the suspension, which is outside the territory of the Slovak Republic. Oil transportation through Slovak territory is ensured and carried out in accordance with the pumping plan," the company said. Ukraine's defence ministry and armed forces, and Hungarian oil company MOL , did not immediately respond to requests for comment. Last year Szijjarto said the Druzhba pipeline would remain Hungary's primary route for crude oil imports. Monday's suspension of oil deliveries comes after a temporary halt last week when Ukraine's military said on August 13 that its drones had hit the Uniecha oil pumping station in Russia's Bryansk region. https://www.reuters.com/business/energy/russian-oil-flows-hungary-slovakia-halted-after-ukrainian-attack-2025-08-18/

2025-08-18 11:12

ABIDJAN, Aug 18 (Reuters) - Ivory Coast's cocoa grind dropped 31.2% year-on-year in July to 39,301 metric tons, data from exporters' association GEPEX showed on Monday, with grinders citing poor bean quality and low volumes of the mid-crop. The total grind - part of the process of transforming cocoa beans into chocolate - from the start of the 2024/25 season in October until the end of July stood at 515,055 tons of beans, down 4% from the same period last season. Sign up here. "July's grinding has fallen dramatically this year compared to last year, mainly due to the quality of the beans," the director of an international grinding company based in San Pedro told Reuters. "They are mediocre this year, so we are rejecting a large quantity due to a lack of fat and a high acidity level." Between April 1 and August 17, cocoa bean arrivals at Ivory Coast's two main ports of Abidjan and San Pedro reached only 350,000 tons, down 30% from around 500,000 tons during the same period of last year, exporters said. Exporters also said grinders have no stocks left and that they will have to rebuild them in order to return to the average grinding rate during the main harvest. "We are waiting for October to get good beans to rebuild all our stocks and return to the grinding level for the period, i.e. just over 58,000 tons per month," the director of a grinding company based in Abidjan told Reuters. "This will require us to be aggressive in our purchasing from the start of the season." The GEPEX data covers six of the largest grinding companies, including Barry Callebaut (BARN.S) , opens new tab, Olam (OLAG.SI) , opens new tab and Cargill Inc (CARG.UL). Ivory Coast has a total grinding capacity of around 750,000 tons. It is the world's top cocoa producer and vies with the Netherlands for the leading spot for grinding. https://www.reuters.com/world/africa/ivory-coast-cocoa-grind-down-312-year-on-year-july-exporters-association-says-2025-08-18/

2025-08-18 11:07

European stocks ease as traders await cues on geopolitics, Fed Oil market steady as Ukraine's Zelenskiy goes to Washington Dollar, yen nudge higher before Jackson Hole LONDON, Aug 18 (Reuters) - European shares wobbled on Monday ahead of what is likely to be an eventful week for U.S. interest rate policy, as investor attention turned to Washington where Ukraine's Volodymyr Zelenskiy and European leaders will meet Donald Trump. The pan-European STOXX 600 index (.STOXX) , opens new tab was down about 0.2% after hitting its highest level since March on Friday, while the MSCI All Country World Index (.MIWD00000PUS) , opens new tab hovered close to the record high touched last week. Sign up here. Earlier in the Asian session, indices in Japan and Taiwan notched record peaks, while a gauge of Chinese stocks (.SSEC) , opens new tab reached its highest level in a decade. Investors were bracing for U.S. President Trump's meeting with Ukrainian President Zelenskiy and European leaders later on Monday to discuss the next steps to end the war in Ukraine, after Trump's summit with Russian President Vladimir Putin in Alaska on Friday. While the summit did not result in an agreement, Trump afterwards appeared more aligned with Moscow on seeking a full peace deal with Ukraine instead of a ceasefire first. "It will be a bit of a muted start to the week," said Lars Skovgaard, senior investment strategist at Danske Bank, after the Russia-U.S. talks on Friday. Skovgaard added that whether or not a deal is reached, focus was already turning to the Kansas City Federal Reserve's August 21-23 Jackson Hole symposium, where Chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework. Markets imply around an 85% chance of a quarter-point rate cut at the Fed's meeting on September 17, and are priced for a further cut by December. "We see three rate cuts in the U.S. this year, and slower GDP growth but no recession," said Mark Matthews, head of research for Asia at Bank Julius Baer in Singapore. "The combination of those two should allow the rally to continue." The prospect of lower borrowing costs globally has underpinned stock markets, and Japan's Nikkei (.N225) , opens new tab climbed to a fresh record high. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab added 0.1%, having scaled a four-year peak last week. In Europe, Germany's DAX (.GDAXI) , opens new tab eased 0.3%. Britain’s FTSE (.FTSE) , opens new tab was down 0.1%. SOLID EARNINGS S&P 500 and Nasdaq futures eased 0.1%, though both were near all-time highs. Valuations have been underpinned by a solid earnings season as the S&P 500 EPS grew 11% on the year and 58% of companies raised their full-year guidance. "Earnings results have continued to be exceptional for the mega-cap tech companies," said analysts at Goldman Sachs. "While Nvidia has yet to report, the Magnificent 7 apparently grew EPS by 26% year/year in 2Q, a 12% beat relative to consensus expectation coming into earnings season." This week's results will provide some colour on the health of consumer spending with Home Depot, Target, Lowe's and Walmart all reporting. In bond markets, the chance of Fed easing is keeping down short-term Treasury yields while the longer end is pressured by the risk of stagflation and giant budget deficits, leading to the steepest yield curve since 2021. European bonds also have been pressured by the prospect of increased borrowing to fund higher defence spending, pushing German and French long-term yields to their highest since 2011. Wagers on more Fed easing have weighed on the dollar, which dropped 0.4% against a basket of currencies last week to last stand at 97.858 . The dollar was up 0.2% on the yen at 147.42 , while the euro slipped to $1.1682 after adding 0.5% last week. In commodity markets, gold bounced 0.4% to $3,349 an ounce after losing 1.9% last week. Oil prices edged higher as White House trade adviser Peter Navarro said India's purchases of Russian crude were funding Russia's war in Ukraine and had to stop, even as Trump backed away from threats to place more restrictions on Russian oil exports. Brent was up 0.4% at $66.08 a barrel, while U.S. crude rose 0.5% t0 $63.11 per barrel. https://www.reuters.com/world/china/global-markets-wrapup-5pix-2025-08-18/