2025-08-07 05:00
Euro rises on hopes for peace deal in Ukraine Dollar on backfoot on data, risks of partisanship in U.S. institutions Swiss Franc up vs dollar despite high tariffs Sterling marks time ahead of anticipated BoE cut Aug 7 (Reuters) - The euro hit a fresh 1-1/2-week high against a weakening dollar on Thursday as investors monitored Ukraine peace talks and shifted their focus to the Bank of England’s policy meeting later in the session. The U.S. dollar remained under pressure amid growing concerns over partisanship creeping into key U.S. institutions. Sign up here. Initial U.S. jobless claims, due later in the session, will be closely watched following last week's disappointing nonfarm payrolls report, which triggered a dovish repricing of the Federal Reserve easing path and a slide in the greenback. The euro rose 0.14% to $1.1677, its highest level since July 28, with a possible peace deal in Ukraine seen as a positive driver for the single currency. Ukrainian President Volodymyr Zelenskiy said he planned contacts with Germany, France and Italy on Thursday to discuss progress toward peace. "Sectors to benefit (from a peace deal) should be European consumers, growth-sensitive and construction-related sectors," said Mohit Kumar, economist at Jefferies. "It should also be positive for Eastern Europe as most of the reconstruction efforts would likely flow through Eastern European economies." Sterling was steady ahead of a policy announcement, with markets widely expecting another rate cut. Markets will watch the expected three-way voting split for any signal that the central bank might change its guidance on a “gradual and careful” easing path. “We suspect conviction levels are low in the supposed consensus view that rates can only go down and pressure affected currencies,” said Geoff Yu, strategist at BNY, after warning that markets may be too complacent about stagflation risks. "The Bank of England will kick off what we expect to be a new run of cuts through August and September in Europe, but over-committing to easing risks policy error and prolonging stagflation," he added. The Swiss franc rose 0.20% to 0.8047 versus the dollar , even as Swiss President Karin Keller-Sutter returned from Washington empty-handed after a trip aimed at averting a crippling 39% tariff on the country’s exports to the U.S. "While we still believe that a deal will ultimately be reached, it is likely to be far more expensive than Switzerland had hoped," said Michael Pfister, strategist at Commerzbank. Last week, U.S. President Donald Trump fired the official responsible for the labour data he did not like, and focus is centring on his nomination to fill a coming vacancy on the Fed's Board of Governors and candidates for the next chair of the central bank. The dollar index , which measures the greenback against a basket of major peers, dropped to a fresh 1-1/2-week low at 98.00, down 0.20% on the day. Fed funds futures are now pricing in a 94% probability of a 25 basis point cut at the Fed's September meeting, up from 48% a week ago, according to the CME Group's FedWatch Tool. In total, traders see 60.5 basis points in cuts this year. The president said on Tuesday he would decide on a nominee to replace outgoing Fed Governor Adriana Kugler by the end of the week and had separately narrowed the possible replacements for Fed Chair Jerome Powell to a short list of four. China's yuan firmed slightly, supported by a stronger official midpoint and upbeat Chinese trade data. https://www.reuters.com/world/middle-east/dollar-holds-losses-us-economy-concerns-fed-appointments-2025-08-07/
2025-08-07 04:32
A look at the day ahead in European and global markets from Kevin Buckland There's little doubt in the market's mind that the Bank of England will cut interest rates later today by another quarter point, making it five cuts in the past year. Sign up here. But a tricky balance between a slowing jobs market and nagging inflation worries could see the board split three ways, with two of the nine members potentially pushing for no change, while two others may lobby for a half-point reduction. The board's language will also be key, with a focus on whether the message of "gradual and careful" policy easing remains in place. Any signs of an extended pause would be a blow for Finance Minister Rachel Reeves and Prime Minister Keir Starmer, who have promised to speed up Britain's slow economic growth. Away from the UK, the market's broad focus falls squarely on another central bank with some similar problems. The U.S. Federal Reserve has seen the macroeconomic data take a distinct downward turn over the past week - particularly the labour market - just days after the board opted to forgo a rate cut. But with worries about simmering inflationary forces as a result of President Donald Trump's bellicose tariff campaign also showing up in the data, Fed Chair Jerome Powell's wait-and-see stance also finds some support. Hanging over the Fed's debate - which saw two Trump-chosen Fed governors dissent in last week's decision - are the president's persistent and aggressive calls to cut rates, often framed with name-calling and threats to fire Powell before his chairmanship expires in May. The market's eyes are on Trump's short list of four possible replacements, and more immediately, his pick to fill a governor role abruptly vacated by Adriana Kugler. Meanwhile, Trump's barrage of tariff threats continues unabated, with a 100% duty on semiconductor imports and additional levies on India for importing Russian oil among the latest. Trump plans to talk to Russian President Vladimir Putin next week about ending the war in Ukraine, which is buoying the euro while injecting uncertainty into the outlook for crude oil. Overall though, the market has become more inured to the constant tariff sabre-rattling and Japan's Topix index (.TOPX) , opens new tab marched to a record peak while tech-heavy Taiwan shares (.TWII) , opens new tab leapt more than 2% to the highest in over a year. Pan-European STOXX 50 futures are pointing 0.2% higher, with Wall Street futures also up by about the same amount. A strong U.S. earnings season is one reason for that. Coming up are Eli Lilly, ConocoPhillips and Warner Bros Discovery, among many others. Europe has a busy day of earnings reports as well, with Allianz, Siemens and Merck among them. On the data front, Germany has trade figures and industrial production numbers, while Britain gets a reading on house prices. Key developments that could influence markets on Thursday: -BoE policy decision -UK Halifax house prices (July) -German exports, imports, industrial production (all June) Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. https://www.reuters.com/world/europe/global-markets-view-europe-2025-08-07/
2025-08-07 04:24
Aug 7 (Reuters) - Japanese investors significantly sold foreign stocks in the week to August 2 as major markets retreated on caution over U.S. economic outlook and a new set of trade tariffs. According to data from Japan's Ministry of Finance released on Thursday, domestic investors withdrew a net 752.1 billion yen ($5.10 billion) out of foreign stocks last week, reversing two successive weeks of net purchases. Sign up here. The MSCI World Index (.MIWD00000PUS) , opens new tab lost a sharp 2.54% last week, the most in three months, pressured by a disappointing U.S. jobs report for July, and President Donald Trump's new round of punishing tariffs on dozens of countries. Despite the recent withdrawals, overseas stock markets have still received a massive 3.37 trillion yen worth of Japanese investments so far this year compared with a net 915.8 billion yen sales a year ago. They also sold foreign long-term bonds of 526.3 billion yen for the second successive week on the run. Meanwhile, Japanese stock markets saw approximately 193 billion yen in weekly net investments from overseas, the smallest amount in six weeks. In local bond markets, foreign outflows from long-term bonds cooled to a three-week low of 87.5 billion yen. Short-term bills saw 1.2 trillion yen of net foreign inflows after a net 1.95 trillion yen weekly outflow in the previous week. ($1 = 147.5800 yen) https://www.reuters.com/business/finance/japanese-investors-ditch-foreign-stocks-us-economic-concerns-tariff-tensions-2025-08-07/
2025-08-07 02:44
MUMBAI, August 7 (Reuters) - The Indian rupee is expected to open largely unchanged on Thursday, showing limited reaction to U.S. President Donald Trump's additional tariffs on Indian goods, which traders said was largely expected and factored in. The 1-month non-deliverable forward indicated the rupee will open in the 87.70-87.75 range versus the U.S. dollar, largely unchanged from Wednesday's close of 87.7325. Sign up here. Indian equities too appeared largely unfazed by the additional tariffs, with GIFT Nifty futures pointing to a muted open. On Wednesday, Trump hit Indian goods with an extra 25% tariff, blaming oil ties with Russia. The new duties, kicking in on August 28, could lift tariffs on some exports to 50% - one of the steepest rates for a U.S. trade partner. "We knew more tariffs were coming after all those hints by Trump," a currency trader at a private sector banks said. It appears that the rupee and Indian equities had largely priced them in, he added. The rupee's measured response to the new tariffs likely reflects the Reserve Bank of India's (RBI) resolve to prevent a breach of the all-time low of 87.95, the trader said. The central bank was likely selling dollars via state-run banks on Tuesday when the currency was at risk of slipping past that level. India-U.S. trade relations have entered a turbulent phase, marked by escalating tariffs and the U.S.'s unease over New Delhi's continued energy engagement with Russia. The developments have raised concerns about higher volatility in Indian assets, with investors bracing for the fallout from worsening relations. The additional tariffs were not "entirely unexpected", especially since Trump had recently threatened substantial tariffs on India, Barclays Bank said, adding that if implemented in full, would "certainly dent India's growth outlook". However, the bank added that the announcement likely represents a pressure tactic and expects the final U.S. duty on Indian goods to settle lower. Citi Research noted that with the extra tariffs kicking in after 21 days, there's window for negotiations. KEY INDICATORS: ** One-month non-deliverable rupee forward at 87.84; onshore one-month forward premium at 10.5 paise ** Dollar index at 98.21; Asian currencies mostly higher ** Brent crude futures up 0.9% at $67.5 per barrel ** Ten-year U.S. note yield at 4.24% ** As per NSDL data, foreign investors bought a net $177.8 mln worth of Indian shares on August 5 ** NSDL data shows foreign investors bought a net $26.7 mln worth of Indian bonds on August 5 https://www.reuters.com/world/india/rupee-likely-hold-ground-after-trump-ramps-up-tariff-heat-indian-goods-2025-08-07/
2025-08-07 00:13
SANTIAGO, Aug 6 (Reuters) - Copper miner Codelco (COBRE.UL) has asked Chile's mining regulator for permission to reopen a part of its flagship El Teniente mine after a collapse last week that killed six people, two sources with knowledge of the matter said. Codelco suspended mining operations at El Teniente, the world's biggest underground copper mine that produced more than 300,000 metric tons last year, on Thursday evening. Sign up here. Chilean mining regulator Sernageomin later imposed a formal suspension, and instructed Codelco to present four reports related to the cause and impact of the accident so it could evaluate lifting the measure. In a statement on Wednesday evening, Codelco said it had responded to three information requests from mining regulator Sernageomin and Chile's labor inspection office. The company also said it was doing cleaning and maintenance at El Teniente's processing plants and smelter, as well as operations in the smelter's anode furnaces every two hours to keep the equipment in working condition. After the accident, Codelco initially continued its processing and smelting operations despite halting underground mining activity. https://www.reuters.com/world/americas/codelco-asks-restart-part-el-teniente-mine-after-accident-2025-08-06/
2025-08-06 23:53
Apple brings total US investment commitment to $600 billion Investment could help Apple sidestep potential iPhone tariffs Announcement helps Apple get on Trump's good side, analysts said WASHINGTON, Aug 6 (Reuters) - President Donald Trump announced on Wednesday that Apple (AAPL.O) , opens new tab will invest an additional $100 billion in the United States, a move that could help it sidestep potential tariffs on iPhones. The new pledge raises Apple's total domestic investment commitment in the U.S. to $600 billion over the next four years. Earlier this year, the company announced it would invest $500 billion and hire 20,000 workers across the country in that period. Sign up here. The announcement centers on expanding Apple's supply chain and advanced manufacturing footprint in the U.S., but still falls short of Trump's demand that Apple begin making iPhones domestically. "Companies like Apple, they're coming home. They're all coming home," Trump told reporters in the Oval Office, moments after Apple CEO Tim Cook gave him a U.S.-made souvenir with a 24-karat gold base. "This is a significant step toward the ultimate goal of ensuring that iPhones sold in America also are made in America," Trump added. Asked if Apple could eventually build entire iPhones in the U.S., Cook noted that many components such as semiconductors, glass and Face ID modules are already made domestically, but said that final assembly will remain overseas "for a while." While the investment pledge is significant, analysts say the numbers align with Apple's typical spending patterns and echo commitments made during both the Biden administration and Trump's previous term. In May, Trump had threatened Apple with a 25% tariff on products manufactured overseas, a sharp reversal from earlier policy when his administration had exempted smartphones, computers and other electronics from rounds of tariffs on Chinese imports. Trump's effort to reshape global trade through tariffs cost Apple $800 million in the June quarter. "Today is a good step in the right direction for Apple, and it helps get on Trump's good side after what appears to be a tension-filled few months in the eyes of the Street between the White House and Apple," said Daniel Ives, an analyst with Wedbush Securities. "A SAVVY SOLUTION" Apple has a mixed track record when it comes to following through on investment promises. In 2019, for instance, Cook toured a Texas factory with Trump that was promoted as a new manufacturing site. But the facility had been producing Apple computers since 2013 and Apple has since moved that production to Thailand. Apple continues to manufacture most of its products, including iPhones and iPads, in Asia, primarily in China, although it has shifted some production to Vietnam, Thailand and India in recent years. Despite political pressure, analysts widely agree that building iPhones in the U.S. remains unrealistic due to labor costs and the complexity of the global supply chain. "The announcement is a savvy solution to the president's demand that Apple manufacture all iPhones in the U.S.," said Nancy Tengler, CEO and CIO of Laffer Tengler Investments, which holds Apple shares. Partners on Apple's latest U.S. investment effort include specialty glass maker Corning (GLW.N) , opens new tab, semiconductor manufacturing equipment supplier Applied Materials (AMAT.O) , opens new tab, and chipmakers Texas Instruments (TXN.O) , opens new tab, GlobalFoundries (GFS.O) , opens new tab, Broadcom (AVGO.O) , opens new tab and Samsung 005930.KS. Apple said Samsung will supply chips from its production plant in Texas for its products including iPhones, while GlobalWafers said it would be supplying 300mm silicon wafers from its Texas plant. Apple shares closed up 5% on Wednesday. Shares of Corning rose nearly 4% in extended trading, while Applied Materials gained almost 2%. https://www.reuters.com/business/retail-consumer/trump-announces-100-billion-new-investment-pledge-apple-2025-08-06/
