2025-07-31 12:01
US stock futures surge on Meta, Microsoft earnings BOJ holds rates steady, ups inflation forecast keeping rate hike bets alive, but yen weakens Copper sees biggest one day decline on record LONDON/SINGAPORE, July 31 (Reuters) - U.S. futures rose on Thursday, outperforming other markets as traders mulled a raft of economic indicators including central bank rate decisions, inflation data and last-minute trade deal talks ahead of U.S. President Donald Trump's August 1 deadline. The next data point is U.S. PCE inflation data, the Federal Reserve's preferred gauge, which will be parsed for signs of any effect of Trump's policies on inflation. Sign up here. The Fed kept rates steady on Wednesday, and chair Jerome Powell said it was necessary to wait for more data before its next move, drawing further criticism from Trump on Thursday. U.S. share futures were trading sharply higher ahead of that data on Thursday, boosted by better-than-expected results from Microsoft (MSFT.O) , opens new tab and Meta Platforms (META.O) , opens new tab after the bell on Wednesday. "Meta and Microsoft have delivered the kind of earnings most companies can only dream of,” said Dan Coatsworth, investment analyst at AJ Bell. "They’ve smashed market forecasts by a country mile and caused investors to scream with joy." Nasdaq futures were 1.25% higher and S&P 500 futures up 0.9%. , Earnings were also in focus in Europe, where the region's banks (.SX7P) , opens new tab rose 0.75% on Thursday after positive results from France's Societe Generale (SOGN.PA) , opens new tab, while defence names rose 2.9% (.SXPARO) , opens new tab thanks to a surge in Rolls-Royce. (RR.L) , opens new tab The broad Stoxx 600 (.STOXX) , opens new tab benchmark was flat however, weighed down by miners after U.S. September Comex copper futures tumbled 22% to $4.37 a lb. That was the biggest fall on record after Trump said the U.S. would impose a 50% tariff on copper pipes and wiring, though this fell short of the expectation of sweeping restrictions. Chinese stocks also retreated after official PMI gauges showed weaker than expected economic activity in July. China's blue chip CSI 300 ended 1.8% lower, its biggest single day drop since April 7, and Hong Kong's (.HSI) , opens new tab index closed 1.6% lower. BOJ FOCUS Earlier in the day there was lots to digest in Asia where the Bank of Japan held interest rates steady and increased its inflation forecast, casting cautious optimism on Japan's economic prospects. Japan's shorter-dated bond yields at one point rose to their highest since early April, but walked that back after the BOJ's policy statement led market participants to scale back expectations for any future interest rate hike. The yen also relinquished early gains and was last weaker on the day at 149.783 per U.S. dollar, its softest since early April, while the Nikkei index (.N225) , opens new tab closed up just over 1%. The dollar's gains on the yen were cancelled out by losses on the euro, which rose 0.37% as traders pared back bets on European Central Bank rate cuts, sending short-dated bond yields higher. Investors in Asia also considered the implications of a trade deal between the U.S. and South Korea as well as whether Trump's initial announcement of a 25% tariff for India should be taken seriously, especially as it was announced in the middle of trade negotiations. Shares in India recovered earlier losses, with the benchmark Nifty 50 (.NSEI) , opens new tab just in positive territory. The Korean won gained 0.3% after Trump said the U.S. would charge a 15% tariff on imports from South Korea, which would in return invest $350 billion in U.S. projects and purchase $100 billion in U.S. energy products. The announcement is the latest in a series of trade deals rushed out before Friday's deadline to avert the imposition of Trump's April 2 "Liberation Day" tariff blitz. Brent crude futures for September , set to expire on Thursday, declined 40 cents to $72.86 a barrel. U.S. West Texas Intermediate crude for September CLc1 fell 33 cents to $69.66. Both benchmarks chalked up 1% gains on Wednesday. https://www.reuters.com/world/china/global-markets-wrapup-5-2025-07-31/
2025-07-31 11:40
July 31 (Reuters) - Intercontinental Exchange (ICE.N) , opens new tab reported an increase in second-quarter profit on Thursday, as it benefited from strong trading volumes in its energy business. The New York Stock Exchange parent reported adjusted earnings of $1 billion, or $1.81 per share, for the quarter ended June 30, compared with $876 million, or $1.52 per share, a year earlier. Sign up here. Exchanges thrive during bouts of market volatility as investors frequently rebalance portfolios to seize opportunities and hedge against risks, driving up trading volumes. U.S. President Donald Trump's sweeping tariffs triggered volatility in April, while tensions in the Middle East exacerbated in June. The volatility index (.VIX) , opens new tab, a barometer for market uncertainty and Wall Street's most-watched gauge of investor anxiety, spiked to record levels in April before easing as optimism over potential trade deals calmed markets. The company's revenue from trading in energy-related products jumped 27% to $595 million, while revenue from ICE's exchange business, the biggest driver of its revenue came at $1.42 billion in the quarter. Shares of the NYSE parent were up 0.7% in premarket trading. https://www.reuters.com/business/finance/nyse-parent-ices-second-quarter-profit-rises-robust-trading-volume-2025-07-31/
2025-07-31 11:38
July 31 (Reuters) - Canadian oil and gas producer Cenovus Energy (CVE.TO) , opens new tab lowered the upper end of its full-year upstream production forecast on Thursday, citing the impact from a temporary shut-in of its Rush Lake facilities. The company said it responded to a steam release from a casing failure in an injection well in early May, and as a result, the Rush Lake facilities in west-central Saskatchewan have been temporarily shut-in. Sign up here. Cenovus forecast 2025 upstream production to be between 805,000 barrels of oil equivalent per day and 825,000 boepd, compared with 805,000 to 845,000 boepd projected previously. For the second quarter, its total upstream production was 765,900 boepd, down from 800,800 boepd a year earlier, reflecting planned turnarounds, maintenance at offshore facilities and short-term production impacts from wildfire activity at Christina Lake. Wildfires across Alberta in May disrupted operations for several oil producers such as Cenovus, Canadian Natural Resources (CNQ.TO) , opens new tab and MEG Energy (MEG.TO) , opens new tab, prompting temporary shutdowns and evacuations at multiple sites. Cenovus' total downstream throughput for the quarter was 665,800 barrels per day, compared with 622,700 bpd a year ago. Benchmark Brent crude prices were lower during the April-June quarter, from a year earlier, weighed down by weak global demand, market volatility due to tariffs and increased oil supply from OPEC+. Calgary, Alberta-based Cenovus posted a net income of C$851 million ($614.57 million), or 45 Canadian cents per share, during the three months ended June 30, compared with C$1.0 billion, or 53 Canadian cents per share, a year earlier. ($1 = 1.3847 Canadian dollars) https://www.reuters.com/business/energy/canadas-cenovus-energy-cuts-2025-production-forecast-2025-07-31/
2025-07-31 11:24
WASHINGTON, July 31 (Reuters) - U.S. President Donald Trump again criticised Federal Reserve Chairman Jerome Powell on Thursday, a day after the U.S. central bank held interest rates steady in a 9-2 vote. "Jerome “Too Late” Powell has done it again!!! He is TOO LATE," Trump wrote in a post on his social media platform. "Put another way,“Too Late” is a TOTAL LOSER, and our Country is paying the price!" Sign up here. https://www.reuters.com/world/us/trump-again-slams-fed-chair-powell-after-rates-hold-2025-07-31/
2025-07-31 11:23
Talks aimed at reducing US tariffs to continue, EU diplomat says EU wine producers warn of significant losses due to tariffs BRUSSELS, July 31 (Reuters) - European wine and spirits will face a 15% U.S. import tariff until a different deal is agreed in talks expected to continue in the autumn, the European Commission and EU diplomats said on Thursday, dashing producers' hopes of an immediate reprieve. A framework trade deal between Brussels and Washington on Sunday agreed a 15% tariff for most EU imports into the United States, although some sectors were expected to be exempted. Sign up here. The U.S. tariff on European wine and spirits is currently 10%. Brussels is keen to reduce that to zero or, for wine at least, to the Most Favoured Nation (MFN) rates that are set on a fixed cost per litre basis, rather than in percentage terms. "The Commission remains determined to achieve and secure the maximum number of carve-outs including for traditional EU products such as wine and spirits," Commission spokesperson for trade Olof Gill told a news conference. "It is not our expectation that wine and spirits will be included as an exemption in the first group announced by the U.S. tomorrow. And therefore that sector will be captured by the 15% ceiling," he said. Wine-makers said the tariff, even if temporary, would hurt the sector, especially when combined with the stronger euro. "The 15% duty on EU wines, even if applied for some months until the negotiations are closed, would cause significant economic losses not only for EU wine producers but also for U.S. businesses involved throughout the supply chain," said Ignacio Sanchez Recarte, secretary general of European wine producers group CEEV. "When combined with the currency shift in the USD/EUR exchange rate, the overall financial burden on the sector could reach 30%. Investments will be halted and export volumes will decline while waiting for the final agreement," he said. The U.S. is to publish an executive order on Friday, implementing the framework trade deal that was agreed on Sunday between U.S. President Donald Trump and European Commission President Ursula von der Leyen. Separately, the EU and the U.S. are set to publish a joint statement in the coming days spelling out the details of the framework deal. A senior diplomat close to the negotiations told Reuters that talks on wine and spirits tariffs would continue after the EU and U.S. finalise their joint statement. "(This will take place) probably in the autumn," the diplomat said. Until recently, spirits had benefited from zero tariffs between the U.S. and EU following an agreement in 1997 that also included other countries such as Canada and Japan. That lasted until 2018, when the EU response to U.S. steel and aluminium tariffs included increased duties on U.S. bourbon and other spirits. These were suspended in 2021. U.S. MFN rates for wine are 19.8 cents per litre for sparkling and 6.3 cents per litre for most other wine, which equates to very low rates in most cases. The EU has already envisaged a quota system for steel exports with U.S. MFN rates, which are very low or at zero. https://www.reuters.com/business/eu-wine-spirits-face-15-us-tariff-august-1-eu-says-2025-07-31/
2025-07-31 11:20
July 31 (Reuters) - Canadian pipeline operator TC Energy (TRP.TO) , opens new tab raised its full-year adjusted core earnings forecast on Thursday, driven by increased natural gas and power demand and strength in its North America operations. In May, TC Energy said it is forecasting an uptick in capital project announcements later this year and into the next, as coal-to-gas conversions and data center growth drive natural gas demand in North America. Sign up here. "We expect to place approximately C$8.5 billion of capital projects into service this year, on time and are tracking approximately 15 per cent below budget," said CEO François Poirier. The company's total quarterly revenue rose 12% to C$3.74 billion ($2.70 billion), supported by higher adjusted core earnings from Mexican, Canadian and U.S. natural gas pipelines. Its power and energy solutions business reported an adjusted core profit of C$301 million in the second quarter, up 32.6% from a year ago. TC Energy operates a 58,100 mile-long network of pipelines, supplying more than 30% of the clean-burning natural gas consumed daily across North America. In the previous quarter, the company had said it sees its greatest opportunity in the U.S., where it has a significant presence in jurisdictions like the U.S. Midwest and Virginia, where there are large clusters of data centers under development. The Calgary, Alberta-based company raised its 2025 adjusted core profit forecast to a range of C$10.8 to C$11.0 billion compared to its previous outlook of C$10.7 to C$10.9 billion. On an adjusted basis, the company earned 82 Canadian cents per share for the three months ended June 30, beating analysts' average expectation of 78 Canadian cents, according to data compiled by LSEG. ($1 = 1.3849 Canadian dollars) https://www.reuters.com/business/energy/tc-energy-raises-full-year-core-profit-forecast-natural-gas-power-demand-2025-07-31/
