2025-08-13 06:23

MUMBAI, Aug 13 (Reuters) - The Indian rupee and forward premiums traded higher on Wednesday, lifted by tame headline U.S. inflation data that reinforced bets of a Federal Reserve rate cut next month. The local currency quoted at 87.6750 at 11.00 am IST, compared to 87.7125 on Tuesday. The U.S. consumer price index for July showed limited impact from recent tariffs. Sign up here. That provided a boost to emerging market currencies, with Fed rate cut odds for September climbing to 94%, and markets now pricing in 60 basis points of cuts this year. Based on the details in the CPI report, Goldman Sachs estimates that the U.S. core PCE price index - the Fed's preferred measure of inflation - rose 0.26% in July versus their expectation of 0.31% prior to the report, corresponding to a year-over-year rate of 2.88%. The inflation data has lent the rupee a bit of a reprieve ahead of the crucial Trump-Putin meeting on Friday, a currency trader at a bank said. The relief is unlikely to extend much beyond the current level — at most to 87.50 — with companies hedging more and interbank positioning expected to remain light until the outcome of the meeting is known. The stakes of the meeting, which aims to explore a resolution to the war in Ukraine, are high for the rupee. Market participants expect any resolution to the conflict to have a bearing on additional tariffs that President Trump has imposed on Indian goods in response to New Delhi’s continued purchases of Russian oil. Dollar/rupee forward premiums moved higher, with the one-year dollar/rupee implied yield rising 2 bps to 2.09%, supported by the drop in U.S. yields amid Fed rate cut bets. https://www.reuters.com/world/india/rupee-rides-us-inflation-relief-forward-premiums-perk-up-fed-cut-bets-2025-08-13/

2025-08-13 06:20

LITTLETON, Colorado, Aug 13 (Reuters) - The pace of new capacity of U.S. solar, wind and battery systems has slowed nationally and in key states this year, hurting clean energy sector sentiment. But climate trackers can take heart from the continued growth outside Texas and California. Combined installations of solar, wind and battery storage systems are on track to climb by around 7% in 2025 from the year before, according to data compiled by energy data platform Cleanview as of mid-2025. Sign up here. That would mark the smallest year-over-year percentage expansion in the footprint of those energy technologies in over a decade, and comes amid aggressive cuts to support for clean power since U.S. President Donald Trump returned to office. Climate advocates are particularly alarmed by the slowing in capacity growth in Texas and California, which account for over a third of national combined clean energy capacity but have grown by less than the national average this year. But while there's plenty for clean energy trackers to be concerned about, there are signs that expansions continue outside of the main clean energy states to suggest the U.S. energy transition may be widening even as it slows in 2025. SOLAR SLOWDOWN Solar power capacity has been the fastest-growing form of clean power generation over the past five years, with national capacity expanding by 181% since 2020 to roughly 136,250 megawatts (MW) as of mid 2025, Cleanview data shows. Total U.S. solar capacity has grown by an annual average of 27% since 2020, but so far in 2025 has only grown by 10% from 2024's total due to the sharp slowdown in developer activity. The growth pace of the combined solar installations in California and Texas - the top two solar producing states - was 8% so far in 2025, and so was less than the national average due mainly to the lowest capacity growth in California on record. Capacity growth in Florida, Nevada, Georgia and Virginia - all top 10 solar states - was also well below the national average. However, Arizona, Ohio and Indiana, which are also in the top 10 list, posted growth rates of well over twice the national average to sustain the overall national growth trend. WIND WOES Wind power capacity growth has been slowing steadily in recent years due to cost increases for parts and labour, as well as difficulties in securing new suitable sites for wind farms. Even so, the 1.8% expansion in total U.S. wind capacity so far this year is the smallest annual increase in the U.S. wind power footprint since at least 2010. Among the 10 largest wind power producing states, only Texas (+2.1%) and Illinois (+4.5%) recorded growth in excess of the national average this year, while seven of the top ten states have so far recorded no increase in capacity versus 2024 at all. That said, states outside the 10 largest wind power producers have expanded capacity by 3% so far this year from 2024's total, which is helping the national total tick higher even as the core wind states tread water. BATTERY BUFFERS Battery energy storage systems (BESS) have been the fastest-growing segment of the clean energy space in recent years, and continue to expand at a faster pace than wind and solar farms in 2025. Total installed utility-scale BESS capacity was 33,212 MW as of mid-2025, Cleanview data shows, which is up 22% from 2024's total. Again, California and Texas have posted growth rates below the national average so far in 2025, of 11% and 14% respectively. However, Arizona, Nevada, Massachusetts and Idaho - all top 10 states for battery capacity - have registered capacity increases of far more than the national average. And with federal support for battery systems still available under the Trump administration even as incentives for solar and wind power are slashed, batteries look set to remain the leading growth driver of U.S. clean energy capacity going forward. COMBINED TAKEAWAYS Combined capacity of solar, wind and battery systems hit 325,700 MW as of mid-2025, which marks a 7% or 20,700 MW rise from a year ago. Among the 10 largest states by combined solar, wind and battery capacity, Texas brought on the largest volume, with a 5,250 MW rise, followed by Arizona, California and Indiana. Florida and Illinois also increased their overall clean energy footprints, mainly through battery systems, and look set to remain attractive markets for battery developers going forward given the need for local utilities to ease grid strain. Batteries will also remain in high demand in areas with large volumes of surplus solar generation that utilities want to harness for use during peak consumption periods. That suggests even if the roll-out of new solar and wind capacity remains stunted as the federal support gets phased out, the overall footprint of clean technology looks set to keep rising as more batteries take root. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn , opens new tab and X , opens new tab. https://www.reuters.com/markets/commodities/us-clean-energy-capacity-growth-gets-slower-wider-2025-2025-08-13/

2025-08-13 05:28

Fed rate cut expected, boosting Wall Street and Asian markets U.S. inflation data below expectations, easing stagflation fears Nikkei hits new high, breaches 43,000 TOKYO, Aug 13 (Reuters) - Stocks in Asia climbed and the U.S. dollar was subdued on Wednesday, as data showed both resilience in major economies and the need for central banks to remain accommodative. Wall Street scaled new heights on Tuesday, driven by increasing certainty the Federal Reserve will cut interest rates next month. Japan's Nikkei broke through the 43,000 level for the first time and cryptocurrency ether rose to an almost four-year high. Sign up here. Pan-region Euro Stoxx 50 futures were up 0.5%, German DAX futures rose 0.5% and FTSE futures climbed 0.2%. U.S. stock futures, the S&P 500 e-minis , were flat. The highly-anticipated U.S. inflation readings indicated President Donald Trump's tariff regime had yet to filter down to consumer prices. In Japan, a report showed manufacturers grew more confident about business conditions after a trade agreement with the United States. "It's clear that almost any good news leads investors to pile money into markets, particularly tech stocks, despite their lofty price tags," Paco Chow, dealing manager at Moomoo Australia and New Zealand, wrote in a note to clients. "They're riding on 95% odds of a Fed rate cut in five weeks and feeling comfort that inflation is only creeping higher, not running amok," Chow said. The MSCI All Country World Index (.MIWD00000PUS) , opens new tab of shares climbed for a second day and reached 949.19, an all-time high. Japan's Nikkei stock index (.N225) , opens new tab rose 1.2%, also setting a fresh peak for a second-straight session. U.S. Labor Department data showed the consumer price index rose 2.7% in the 12 months through July, slightly below the 2.8% rate that economists polled by Reuters had forecast. A Reuters poll that tracks the Bank of Japan's quarterly tankan business survey showed Japanese manufacturers' sentiment index improved for a second straight month. Another report showed Japan's wholesale inflation slowed in July, underscoring the central bank's view that upward price pressure from raw material costs will dissipate. On Wall Street, the benchmark S&P 500 and the Nasdaq hit record highs after President Trump signed an executive order pausing triple-digit levies on Chinese imports for another 90 days. Traders are pricing in a 94% chance of a Fed cut in September, up from nearly 86% a day ago and about 57% a month earlier, according to the CME FedWatch tool. Investors had been on tenterhooks about the inflation data because it followed a surprisingly weak jobs report on August 1 and had the potential to stoke concerns about stagflation. Trump has nominated White House adviser Stephen Miran to temporarily fill a vacant board seat at the U.S. central bank, stirring up speculation about presidential interference in monetary policy. And the White House said it was "the plan" that the Bureau of Labor Statistics would continue to publish its closely watched monthly employment report after Trump's pick to head the agency E.J. Antoni proposed suspending its release. Speculation the labour report would be halted has "done the USD no favours and would have only incentivised foreign investors to review their hedging ratios on U.S. investments," Chris Weston, head of research at Pepperstone, said in a note. The dollar edged 0.1% higher to 147.95 yen. The euro added 0.1% to $1.1683, after a 0.5% jump in the previous session. The dollar index , which tracks the greenback against a basket of major peers, slid for a second day. Ether jumped 1% and reached as high as $4,679.47, the highest since December 2021. U.S. crude rose 0.2% to $63.27 a barrel. Spot gold rose 0.2% to $3,350.09 per ounce. https://www.reuters.com/world/china/global-markets-global-markets-2025-08-13/

2025-08-13 05:24

Dollar falls as markets ramp up Fed cut bets US inflation data in line with expectations Trump weighing lawsuit against Powell over renovations SINGAPORE, Aug 13 (Reuters) - The dollar weakened on Wednesday after a tame reading on U.S. inflation bolstered expectations of a Federal Reserve rate cut next month, with President Donald Trump's attempts to extend his grip over U.S. institutions also undermining the currency. U.S. consumer prices increased marginally in July, data showed on Tuesday, in line with forecasts and as the pass-through from Trump's sweeping tariffs to goods prices has so far been limited. Sign up here. Investors eyeing imminent Fed cuts cheered the data and moved to price in a 98% chance the central bank would ease rates next month, which in turn dragged on the dollar. The euro was last up 0.1% to $1.1684, having risen 0.5% in the previous session. Against the yen, the dollar edged 0.07% higher to 147.95 . The dollar index dipped to 98.02, extending its 0.5% fall on Tuesday. "The July CPI report showed less evidence of tariff pass-through to consumer prices ... (but) I think a September rate cut is less than certain, probably not as certain as current market pricing," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "As the last payroll shows, one report can be sufficient to move the policy debate to one side or another. So I think we still have to wait (for) the remaining data to print before making a strong case about a rate cut or an on hold decision." U.S. Treasury yields similarly fell on the heightened rate cut expectations, with the two-year yield last at 3.7348%, having swung in a range of nearly 10 basis points on Tuesday. The benchmark 10-year yield eased about 1 basis point to 4.2829%. Also eroding investor confidence in the dollar were fresh attempts by Trump to undermine Fed independence, after White House spokeswoman Karoline Leavitt said on Tuesday that the U.S. president was considering a lawsuit against Fed Chair Jerome Powell in relation to his management of renovations at the central bank's Washington headquarters. Trump has been at loggerheads with Powell and has repeatedly lambasted the Fed chair for not easing rates sooner. The president also hit out at Goldman Sachs (GS.N) , opens new tab CEO David Solomon, saying the bank had been wrong to predict U.S. tariffs would hurt the economy. Trump questioned whether Solomon should lead the Wall Street institution. Elsewhere, sterling gained 0.03% to $1.3505. Britain's jobs market weakened again though wage growth stayed strong, according to data on Tuesday, underscoring why the Bank of England is so cautious about cutting interest rates. The Australian dollar was up 0.03% to $0.6531, while the New Zealand dollar gained 0.05% to $0.5957. The Reserve Bank of Australia on Tuesday cut interest rates as expected, and signalled further policy easing might be needed to meet its inflation and employment goals as the economy lost some momentum. In cryptocurrencies, bitcoin halted its rally towards a fresh record and last traded 0.7% lower at $119,337.25, while ether scaled a nearly four-year high of $4,679.47. "Ethereum's quiet breakout is being fueled by real-world adoption and capital confidence," said Gracie Lin, Singapore CEO of crypto exchange OKX. "On our platform, ETH has now overtaken BTC as the most traded asset over the past month." https://www.reuters.com/world/middle-east/dollar-eases-investors-eye-september-fed-cut-2025-08-13/

2025-08-13 05:00

Aug 13 (Reuters) - A small fire ignited by debris from a destroyed drone was promptly doused at the Slavyansk oil refinery in Russia's region of Krasnodar, authorities said on Wednesday. Russia's air defence units destroyed 46 Ukrainian drones overnight, the defence ministry said on Telegram, including five over the Krasnodar region. The ministry reports only drones downed, not the number launched by Ukraine. Sign up here. "There are no casualties reported," the administration said on the Telegram messaging app. "The fire was promptly extinguished. Emergency and special services are working at the scene." A car caught fire at the refinery, the regional administration added in its post. Reuters was not able to independently verify the reports. There was no immediate comment from Ukraine, which says its strikes inside Russia aim to destroy infrastructure key to Moscow's war efforts, including energy facilities. The Slavyansk refinery is a private plant with a capacity of around 100,000 barrels per day, supplying fuel for both domestic use and export. The overnight Ukrainian drone attack also targeted Russia's southern region of Volgograd, the regional governor said. Drone debris fell on a 16-story residential building in the city of Volgograd, forcing residents to leave their homes, the governor, Andrei Bocharov, said on Telegram. The city of Volgograd is the administrative centre of the broader region of the same name. The Russian defence ministry said its units destroyed 11 drones overnight over Volgograd. https://www.reuters.com/world/europe/drone-debris-sparks-small-fire-russian-refinery-authorities-say-2025-08-13/

2025-08-13 04:38

TOKYO, Aug 13 (Reuters) - A look at the day ahead in European and global markets from Rocky Swift Record highs are popping up on stock markets all over the world, from Wall Street to Japan and Vietnam, and equity indexes across Asia are a sea of green. Sign up here. Data in the United States and other major markets are falling into a Goldilocks zone of not-too-hot inflation that allows central banks to keep the easy money flowing. The MSCI All Country World Index (.MIWD00000PUS) , opens new tab of shares reached a new all-time high, as did Japan's Nikkei (.N225) , opens new tab gauge, which smashed through the 43,000 level for the first time. Bitcoin's cryptocurrency rival ether jumped to a near four-year high. Traders are pricing in a 94% chance the Federal Reserve will cut its key interest rate in September, up from nearly 86% a day ago and about 57% a month earlier, according to the CME FedWatch tool. The central bank in Australia cut rates yesterday and New Zealand's is expected to follow suit next week. The Bank of Japan's long-anticipated rate hike keeps getting kicked down the road. A Reuters poll that tracks the BOJ's quarterly tankan business survey showed Japanese manufacturers' sentiment index improved for a second-straight month, while another report showed the nation's wholesale inflation slowed in July. Left in the cold is the dollar, still the biggest loser since U.S. President Donald Trump began his on-again, off-again tariff saga in April. A new problem for the greenback is concern that partisanship will creep into U.S. monetary policy and the sanctity of economic data. Trump has nominated White House adviser Stephen Miran to temporarily fill a vacant board seat at the Fed. And the White House said it was "the plan" that the Bureau of Labor Statistics would continue to publish its closely watched monthly employment report after Trump's pick to head the agency, E.J. Antoni, previously proposed suspending its release. It's a light calendar for data and earnings in Europe and the U.S., and equity futures are pointing another day of gains in both markets. Meanwhile, small bands of Russian soldiers thrust deeper into eastern Ukraine, with Trump planning to meet Russian President Vladimir Putin in Alaska on Friday in search of an end to the war. European leaders fear the summit could result in peace terms imposed on an unlawfully shrunken Ukraine. Key developments that could influence markets on Wednesday: - Germany final consumer price index (CPI) data for July - United Kingdom RICS Housing Survey for July https://www.reuters.com/world/china/global-markets-view-europe-2025-08-13/