2025-08-04 19:25

Dollar rebounds slightly after Friday's slide Weak jobs, uncertainty over Fed independence weigh on dollar Investors pricing in more than 80% chance of September Fed cut NEW YORK, Aug 4 (Reuters) - The U.S. dollar slightly recovered on Monday, consolidating recent moves, after Friday's trio of market-moving events that showcased the fragility of the greenback: a dismal U.S. jobs report, the resignation of a Federal Reserve Governor, and President Donald Trump's firing of a top statistics official. Those developments battered the currency and prompted investors to ramp up bets of imminent Fed rate cuts. Sign up here. But the dollar's bounce on Monday could be short-lived, analysts said, and the broader downtrend could re-emerge given U.S. policymaking uncertainty and a U.S. economy that is finally showing cracks. Data on Friday showed U.S. employment growth undershot expectations in July while the nonfarm payrolls count for the prior two months was revised down by a massive 258,000 jobs, suggesting a sharp deterioration in labour market conditions. "The U.S. seems to be ... experiencing a slowdown across industries that are doubting the benefits to arrive from deterring overseas production and purchasing," said Juan Perez, director of trading at Monex USA in Washington. "The world is not necessarily experiencing much optimism even as economic indicators here help in suggesting that aid will come from the Fed via rate cuts," he added. In afternoon trading, the dollar rose against the euro, Swiss franc, and the commodity-linked currencies such as the Australian and New Zealand dollars. The euro dipped 0.1% against the U.S. unit to $1.1576 , while the dollar rose 0.5% against the Swiss franc to $0.8078 . The drop in the Swiss currency was not a surprise after Trump hit Switzerland with some of the highest tariffs as part of the White House's global trade reset. The Aussie and New Zealand dollars also declined on Monday versus the greenback, falling 0.2% to US$0.6463 and down 0.3% at US$0.5904 . Against the Swiss franc, the dollar rose 0.5% at 0.8081 . Versus the yen, the U.S. currency gained 0.3% to 146.945 . "July's rebound in the dollar ran into a wall last week, but so far there's no sign of a big jump in any risk premium for holding U.S. assets," said Karl Schamotta, chief market strategist, at Corpay in Toronto. "Strong corporate earnings are - so far - managing to overshadow fears of an incipient slowdown in labor markets, the impact of higher tariffs, the threat to the independence of U.S. statistical agencies, and the growing likelihood that the next Fed chair tries to lead monetary policy in an inflation-boosting dovish direction," he said. BLS FIRING; KUGLER RESIGNATION In other developments, Trump fired BLS Commissioner Erika McEntarfer on Friday, accusing her of faking the jobs numbers. An unexpected resignation by Fed Governor Adriana Kugler also opened the door for Trump to make an imprint on the central bank much earlier than anticipated. Trump has been at loggerheads with the Fed for not lowering interest rates sooner. The developments sent the dollar down more than 2% against the yen and roughly 1.5% against the euro on Friday. The euro slipped 0.2% on Monday to $1.1568 , while sterling was little changed at $1.3275. Trump said on Sunday he will announce a candidate to fill the open position at the Fed and a new BLS head in the next few days. Against a basket of currencies, the dollar edged up 0.1% to 98.77, after sliding more than 1.3% on Friday. The dollar rose 3.4% in July, its biggest monthly gain since a 5% jump in April 2022 and first monthly rise of the year, as markets became more at ease with Trump's trade policy and economic data had remained resilient in the face of tariffs. In other markets, the policy-sensitive two-year Treasury yield fell to a three-month low of 3.659% on Monday as traders heavily raided bets of a Fed cut in September, while the benchmark 10-year yield strayed not too far from a one-month low at 4.2257%. Markets are now pricing an 84% chance the Fed will ease rates by a quarter-point next month owing to the weaker than expected jobs data, according to CME's FedWatch, with just under 60 basis points worth of cuts expected by December, implying two 25 basis point cuts and a 40% chance of a third. https://www.reuters.com/world/india/us-dollar-gains-consolidation-move-after-fed-turmoil-trumps-shake-up-2025-08-04/

2025-08-04 18:18

Stock pickers up 7.8% in 2025 Quants recover from record monthly loss Crowded trades drain gains LONDON/NEW YORK, Aug 5 (Reuters) - Hedge fund returns climbed in July as many were lifted by rising stock markets that hit record highs, though others were caught in turbulence sparked by U.S. trade uncertainty, according to a Goldman Sachs report and sources familiar with the funds. Hedge fund stockpickers returned almost 1.5% in July and are up roughly 7.8% for the year so far, said Goldman Sachs in a note to clients on Monday seen by Reuters. Sign up here. Systematic hedge funds trading stocks were on track to deliver their worst monthly performance on record before rebounding after July 25 to claw back half of their losses, finishing with a negative 2% return, said Goldman. These funds were up 10% for the year so far, however, added the bank. While stockpickers benefited by piling into already crowded trades, hedge funds using algorithms to create systematic trading strategies were hurt by busy trades, said Goldman. The S&P 500 (.SPX) , opens new tab hit record highs during July, but only returned 1.38%. The biggest multi-strategy funds posted muted returns, including Schonfeld Strategic Advisors' flagship fund Strategic Partners, which was down 0.3% in July and is now up 5.8% for 2025, according to a source familiar with the matter. Schonfeld's Fundamental Equity fund gained 1.4% last month and was up 7.1% in the year, the source added. The $76.9 billion British hedge fund Marshall Wace returned a negative 0.2% in its Market Neutral TOPS fund, bringing its half-year performance to roughly 11%. Its Eureka fund returned 1.6% in July and is up 6.1% for 2025 so far, said another source familiar with the fund's results. *result as of Aug 4 https://www.reuters.com/markets/wealth/stockpickers-rise-quants-suffer-multistrategy-funds-steady-july-2025-06-03/

2025-08-04 18:02

Traders expect US rate cut in September Fresh tariffs imposed by Trump to stay, says Trade Rep Palladium at a 3-week low Aug 4 (Reuters) - Gold prices rose for a third straight session on Monday after last week's economic data fueled expectations of interest rate cuts by the U.S. Federal Reserve. Spot gold rose 0.3% to $3,372.15 per ounce as of 0146 p.m. ET (17:46 GMT), its highest level since July 24. U.S. gold futures settled 0.8% higher at $3,426.4. Sign up here. "The odds are stronger now for a rate cut in September and even stronger for another rate cut in December. That coupled with the headwinds of inflation, I think is pretty bullish for gold," said Daniel Pavilonis, senior market strategist at RJO Futures. Last week, data showed that U.S. employment growth was weaker than expected in July while the nonfarm payrolls count for the prior two months was revised down by a massive 258,000 jobs, suggesting a sharp deterioration in labor market conditions. Additionally, the Fed's preferred gauge, U.S. PCE inflation data, increased 0.3% in June after an upwardly revised 0.2% gain in May as tariffs started raising the cost of some goods. According to the CME FedWatch tool, traders now see an 87.8% chance of a September rate cut, up from just over 63% a week ago. Bullion typically performs well in a low-interest-rate environment and is regarded as a hedge against inflation. The tariffs U.S. President Donald Trump imposed last week on scores of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said in comments aired on Sunday. Trump set rates including a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan and 39% for Switzerland, according to a presidential executive order. Elsewhere, spot silver was up 0.9% at $37.35 per ounce. Platinum rose 1.3% to $1,332.20, while palladium slipped 1.6% to $1,188.90 after reaching a three-week low earlier in the session. Palladium prices still has some upside and are likely to see a rebound with downside support at $1,180/oz and upside breakout at $1,230, Pavilonis said. https://www.reuters.com/world/china/gold-extends-gains-us-rate-cut-expectations-2025-08-04/

2025-08-04 17:53

Aug 4 (Reuters) - Energy solutions company Lummus Technology said on Monday it has confidentially filed for an initial public offering in the United States amid President Donald Trump's broader strategy to enhance domestic energy production. U.S. IPO market activity, which began the year sluggishly, is showing signs of a steady rebound after recent new listings attracted strong investor demand. Sign up here. During his presidential campaign, Trump promised to increase U.S. energy production, and his recent signing of the "Big Beautiful Bill" further reinforced the ongoing dominance of oil and gas in the country's energy mix. "Given the outsized gains posted by recent energy listings amid surging AI-driven power demand and tailwinds from Trump’s 'Unleash American Energy' agenda, the timing to go public seems right for Lummus," said Lukas Muehlbauer, IPOX research associate. Oilfield services provider Flowco (FLOC.N) , opens new tab and Infinity Natural Resources (INR.N) , opens new tab, which went public in January, drew a warm reception from investors on debut. Muehlbauer said American energy firms are increasingly "shielded from Middle East-focused geopolitical risks" as the current administration moves to ramp up domestic production. In 2020, The Chatterjee Group's unit and Rhone Capital acquired , opens new tab Lummus Technology from McDermott International at a $2.73 billion valuation. Black Rock Coffee Bar and crypto custody startup BitGo, among others, confidentially filed for a U.S. IPO in July, joining a growing number of companies aiming to tap into strong market momentum. Confidential filings let companies share private info with regulators and test investor interest before formal launch. Founded in Houston, Texas, in 1907, Lummus Technology offers process technologies, lifecycle services and digitalization tools to petrochemicals, refining, gas processing and sustainable energy industries. "Lummus offers investors an alternative to capital-intensive energy operators by positioning itself as a technology licensor and services provider with high-margin revenue through recurring royalties and lifecycle support rather than owning heavy assets," said Muehlbauer. The terms of the offering were not disclosed. https://www.reuters.com/business/energy/energy-tech-firm-lummus-confidentially-files-us-ipo-amid-trumps-domestic-push-2025-08-04/

2025-08-04 17:37

Aug 4 (Reuters) - U.S.-based Commonwealth LNG on Monday said it has chosen France-based Technip Energies (TE.PA) , opens new tab to provide engineering, procurement, and construction (EPC) services for its 9.5 million tonnes per annum (mtpa) LNG facility in Cameron Parish, Louisiana. The United States is the world's largest exporter of LNG. Based on projects under construction and those expected to receive financial approval this year, the country could triple its export capacity by 2030. Sign up here. The Cameron Parish project is expected to reach a final investment decision in the second half of 2025, with LNG production slated to begin in 2029. Commonwealth LNG is working to build what it says will be the United States' first integrated LNG export facility, enabling its majority shareholder, Kimmeridge, to sell gas from its Eagle Ford shale operations directly to the plant. Last month, Reuters had reported that oil giant Saudi Aramco (2222.SE) , opens new tab is in talks , opens new tab with Commonwealth LNG to buy liquefied natural gas from the the proposed facility, as the energy giant seeks to strengthen its position in the global market for the supercooled fuel. https://www.reuters.com/business/energy/commonwealth-lng-selects-technip-energies-us-lng-project-2025-08-04/

2025-08-04 17:09

Natural hybridization event occurred 9 million years ago Interbreeding involved tomato and a potato-like species Study analyzed genomes from cultivated and wild potatoes WASHINGTON, Aug 1 (Reuters) - The potato is one of the world's food staples, first cultivated thousands of years ago in the Andes region of South America before spreading globally from the 16th century. But despite its importance to humankind, the evolutionary origins of the potato have remained puzzling - until now. A new analysis of 450 genomes from cultivated potatoes and 56 genomes of wild potato species has revealed that the potato lineage originated through natural interbreeding between a wild tomato plant and a potato-like species in South America about 9 million years ago. Sign up here. This hybridization event led to the appearance of the nascent potato plant's tuber, an enlarged structure housing nutrients underground, according to the researchers, who also identified two crucial genes involved in tuber formation. Whereas in a tomato plant the edible part is the fruit, in the potato plant it is the tuber. "Potatoes are truly one of humanity's most remarkable food staples, combining extraordinary versatility, nutritional value and cultural ubiquity in ways few crops can match," said Sanwen Huang, a genome biologist and plant breeder at the Chinese Academy of Agricultural Sciences and senior author of the study published on Friday in the journal Cell , opens new tab. "People eat potatoes using virtually every cooking method - baking, roasting, boiling, steaming and frying. Despite being stereotyped as carbohydrates, potatoes offer vitamin C, potassium, fiber and resistant starch, and are naturally gluten-free, low-fat and satiating - a nutrient-dense calorie source," Huang added. Resistant starch is a type of carbohydrate that resists digestion in the small intestine and ferments in the large intestine, feeding beneficial bacteria in the gut. The modern-day potato plant's scientific name is Solanum tuberosum. Its two parents identified in the study were plants that were the ancestors of a potato-like species now found in Peru named Etuberosum, which closely resembles the potato plant but lacks a tuber, and the tomato plant. These two plants themselves shared a common ancestor that lived about 14 million years ago, and were able to naturally interbreed when the fortuitous hybridization event occurred five million years after they had diverged from each other. "This event led to a reshuffling of genes such that the new lineage produced tubers, allowing these plants to expand into the newly created cold, dry habitats in the rising Andes mountain chain," said botanist Sandra Knapp of the Natural History Museum in London, a co-author of the study. This hybridization event coincided with the rapid uplift of the Andes. With a tuber, the potato plant was able to adapt to the changing regional environment and thrive in the harsh conditions of the mountains. "Tubers can store nutrients for cold adaptation, and enable asexual reproduction to meet the challenge of the reduced fertility in cold conditions. These allowed the plant to survive and rapidly expand," Huang said. The study's findings, according to the researchers, may help guide improved cultivated potato breeding to address environmental challenges that crops presently face due to factors such as climate change. There currently are roughly 5,000 potato varieties. The potato is the world's third most important food crop, after rice and wheat, for human consumption, according to the Peru-based International Potato Center research organization. China is the world's leading potato producer. "It always is hard to remove all the deleterious mutations in potato genomes in breeding, and this study opens a new door to make a potato free of deleterious mutations using the tomato as the chassis of synthetic biology," Huang said. The study also may open the door to generate a new crop species that could produce tomato fruit above ground and potato tubers below ground, according to Zhiyang Zhang, a postdoctoral researcher at the Chinese Academy of Agricultural Sciences. The potato and tomato are members of the nightshade family of flowering plants that also includes tobacco and peppers, among others. The study did not investigate the evolutionary origins of other tuberous root crops that originated in South America such as the sweet potato and yuca, which are members of different families of flowering plants. While the parts of the tomato and potato plants that people eat are quite different, the plants themselves are very similar. "We use different parts of these two species, fruits in tomatoes and tubers in potatoes," Knapp said. "If you look at the flowers or leaves, these are very similar. And if you are lucky enough to let your potato plant produce fruits, they look just like little green tomatoes. But don't eat them. They are not very nice." https://www.reuters.com/science/evolutionary-origins-potato-revealed-tomato-was-involved-2025-08-01/