2026-02-11 02:26

Feb 10 (Reuters) - U.S. President Donald Trump is set to direct the Pentagon to use government funding and Pentagon contracts to sustain U.S. coal-fired power plants, Bloomberg News reported on Tuesday, citing a White House official. Reuters was not immediately able to verify the report. The White House did not immediately respond to Reuters' request for comment outside of regular business hours, while the Pentagon deferred to the White House for comment. Sign up here. The Bloomberg report said the move will come via an executive order on Wednesday, with Trump directing Defense Secretary Pete Hegseth to enter agreements to buy electricity from coal plants for military operations. Trump is also set to unveil a plan by the Department of Energy to provide $175 million for upgrades at six coal-fired plants in Kentucky, North Carolina, Ohio, Virginia and West Virginia, the report added. The White House also said it would hold an event on Wednesday promoting coal-powered energy sources. Coal executives, miners and energy industry leaders will visit the White House as Trump makes the announcements, the report added. Trump last year signed executive orders to increase coal output, in one of his many actions that run counter to global efforts to cut carbon emissions. https://www.reuters.com/business/energy/trump-direct-pentagon-buy-coal-revive-industry-bloomberg-news-says-2026-02-11/

2026-02-11 01:52

SYDNEY, Feb 11 (Reuters) - A top Australian central banker said on Wednesday inflation was too high and policy makers were committed to doing whatever was necessary to bring it to heel, pointing to the strength of credit growth as a sign rates were not restrictive. Speaking at a business lunch, Reserve Bank of Australia Deputy Governor Andrew Hauser said many parts of the economy were doing well but growth as a whole was bumping up against capacity constraints. Sign up here. "Inflation at this level is too high, and we all remember the cost excessively high inflation poses," said Hauser. "We will continue to do whatever is necessary to ensure that inflation does return to the target band." The RBA raised its cash rate last week by a quarter point to 3.85%, reversing one of three cuts made last year, and left the door open to further tightening should inflation not subside as forecast. Markets imply around a 70% chance rates will rise to 4.10% at the RBA's May meeting, following the release of first-quarter inflation figures. Core inflation picked up to 3.4% in the fourth quarter, the fastest pace in over a year and above the RBA's own forecasts. That led the central bank to revise up the expected peak for core inflation to 3.7% for this year, well above its long-run target range of 2% to 3%. Recent data has reinforced the case of a capacity-restrained economy, with a surprise fall in the unemployment rate to a seven-month low of 4.1% in December suggesting the labour market may have started to tighten again. Robust consumer spending, record-high housing prices and easy credit for households and businesses also implied financial conditions might not be as restrictive as the RBA thought. Indeed, figures out on Wednesday showed mortgage lending jumped 9.5% by value in the fourth quarter, on top of a similarly hot result the previous quarter, while loans for investment climbed to a record. https://www.reuters.com/world/asia-pacific/australia-central-bank-again-warns-inflation-is-too-high-2026-02-11/

2026-02-11 01:46

Yen extends strong gains in wake of weekend election in Japan Australian dollar tops $0.71 for first time in three years Eyes on US non-farm payrolls data Norwegian crown at strongest vs dollar since 2022 SINGAPORE/LONDON, Feb 11 (Reuters) - The dollar struggled across the board on Wednesday, particularly against the Japanese yen and Australian dollar, with traders fearing a soft number from always important U.S. payrolls data. Nonfarm payrolls likely increased by 70,000 last month after rising 50,000 in December, a Reuters survey of economists showed, and a large beat or miss, when the data is released at 8:30 a.m. (1330 GMT) will shape expectations for Federal Reserve policy. Sign up here. Traders are speculating that the number could be on the low side after White House economic adviser Kevin Hassett said on Monday that Americans could see smaller job growth numbers in the coming months due to lower population figures and higher productivity. "The market is fearful of getting another soft payrolls report today after the comments from Hassett, telling people not to panic," said Lee Hardman, senior currency analyst at MUFG. Markets are currently fully pricing a 25 basis point Fed rate cut by June, and see around a 50% chance of one as soon as April. Those bets rose on Tuesday after the U.S. posted slower-than-expected retail sales in December, while a separate report showed growth in U.S. labour costs unexpectedly slowed in the fourth quarter. The euro was up 0.1% at 1.1904 , sterling gained 0.34% to $1.3686 but the biggest major mover was the yen, against which the dollar was 0.5% lower at 153.63, as the Japanese currency continues to outperform after Prime Minister Sanae Takaichi's landslide election victory. The dollar has lost 2.3% on the yen since Takaichi's weekend win, while the euro has shed 1.6% on the yen. Many analysts had been expecting the yen to weaken if Takaichi, who is in favour of tax cuts despite Japan's large debt burden, won big, but the moves have confounded those bets, and have now become somewhat self-reinforcing. "The yen’s failure to weaken further even after Prime Minister Takaichi strengthened her grip on power in Japan has likely encouraged speculators to further scale back short yen positions in the near term," said Hardman. "People have been selling the yen since September, and now they seem to think enough of a risk premium is priced in." HAWKS ARE BACK The other notable movers were linked to central banks likely turning more hawkish. The Australian dollar broke above $0.71 for the first time since February 2023, and last traded 0.5% higher at $0.7110, after Reserve Bank of Australia Deputy Governor Andrew Hauser said inflation was too high and policymakers were committed to doing whatever was necessary to bring it to heel. "We have upgraded our Aussie dollar view... the end-year forecast is $0.73 from $0.69," said Moh Siong Sim, a currency strategist at OCBC. He noted the RBA's rate hike last week to 3.85% was the first in the G10 outside of Japan and "that hawkish hike will put additional focus on whether the RBA would follow with more hikes down the road." Markets imply around a 70% chance rates will rise to 4.10% at the RBA's May meeting, following the release of first-quarter inflation figures. Norway's crown also outperformed a day after stronger-than-expected core inflation data caused markets to price out any further monetary easing there. The dollar was last down 0.77% at 9.452 crowns , its lowest since 2022, with the euro 0.55% lower at 11.26 crowns, its lowest since June 2024. https://www.reuters.com/world/asia-pacific/yen-perky-japan-fiscal-fears-dissipate-dollar-shaky-ahead-payrolls-2026-02-11/

2026-02-11 01:36

US job growth accelerates in January US unemployment rate falls to 4.3% US dollar edges down to near two-week lows US 10-year Treasury bond yields fall to near one-month low Feb 11 (Reuters) - Gold prices rose more than 1% on Wednesday, as steady long‑term buying helped the metal regain momentum after briefly paring gains while markets absorbed a strong U.S. jobs report. Spot gold was up 1% at $5,074.29 per ounce by 11:28 a.m. ET, having earlier touched $5,118.47 before easing slightly. Sign up here. U.S. gold futures for April delivery settled 1.3% higher at $5,098.50 per ounce. U.S. job growth accelerated in January and the unemployment rate fell to 4.3%, signalling labor‑market resilience that could give the Federal Reserve room to hold rates steady while it monitors inflation. "One strong jobs report won't dent the mentality behind gold buying which is considered long-term and fundamental," said Tai Wong, an independent metals trader. "Since the big collapse, gold has shown mostly higher highs and higher lows, with buyers still confident amid the debt and divest‑from‑the‑U.S. narrative." Gold suffered sharp two‑day sell‑offs on January 30 and February 2 after U.S. President Donald Trump announced his pick for the Fed chair. But the metal has still gained more than 17% this year, building on last year's record advance amid rising geopolitical and economic uncertainty and increased central bank purchases. Data on Tuesday showed U.S. retail sales were unexpectedly unchanged in December, potentially setting consumer spending and the economy on a slower growth path heading into the new year. The Fed will keep rates unchanged through Chair Jerome Powell's term ending in May but cut immediately afterward in June, a Reuters poll showed, with economists warning that policy under his likely successor, Kevin Warsh, could become too loose. Non-yielding gold typically performs well during periods of geopolitical or economic uncertainty and when interest rates are lower. Investors focus now await the U.S. consumer price index report due on Friday. Spot silver was up 4.6% at $84.39 per ounce, after falling more than 3% in the previous session. Spot platinum rose 2.5% to $2,138.50 per ounce, while palladium added 0.8% to $1,722.06. https://www.reuters.com/business/gold-silver-climb-us-yields-fall-softer-retail-sales-2026-02-11/

2026-02-11 01:16

European stocks steady, US futures rise Yen up 2.5% vs dollar since Japan election US jobs data awaited after weak retail sales LONDON, Feb 11 (Reuters) - European stocks were little changed on Wednesday as jitters about artificial intelligence disruption persisted, while S&P 500 futures edged higher as investors awaited U.S. jobs data later in the day. The U.S. dollar fell for a fourth straight session and the yen extended its rally, in a potential shift in investor thinking since Sunday's landslide election victory for Japan's Prime Minister Sanae Takaichi. Sign up here. Europe's benchmark STOXX 600 index (.STOXX) , opens new tab was last roughly flat. Tech stocks were hit by a fall in French software maker Dassault Systemes (DAST.PA) , opens new tab amid simmering fears about disruption from artificial intelligence to companies ranging from insurers and software makers to wealth managers. "What we're seeing now is investors being a lot more discerning in terms of their selections within the AI sphere," said Aneeka Gupta, equity and commodity strategist at WisdomTree. Germany's DAX (.GDAXI) , opens new tab slipped 0.14%, while Britain's FTSE 100 (.FTSE) , opens new tab rose 0.72%. Futures on the U.S. S&P 500 (.ESc1) , opens new tab rose 0.15% while those for the tech-dominated Nasdaq were 0.1% higher. INVESTORS WEIGH AI'S IMPACT Benchmark stock indexes have continued to trade near all-time highs despite worries about AI hitting certain sectors, as investors have pivoted towards companies they see as less likely to be negatively affected. The S&P (.SPX) , opens new tab finished less than 1% below January's all-time high on Tuesday, slipping 0.3%, even as wealth management firms suffered a selloff over renewed fears that new AI models could shake up the sector. Europe's STOXX 600 and Britain's FTSE 100 both hit record highs earlier this month. "Large language models can't simply create replacements for medicines and raw materials," said Derren Nathan, head of equity research at Hargreaves Lansdown. "Surging energy and rare earths demand can be taken as a positive for some key industries." KEY US JOBS DATA LOOMING Data due at 8:30 a.m. ET (1330 GMT) is expected to show U.S. non-farm payrolls increased by 70,000 last month after rising 50,000 in December. But annual benchmark payrolls revision could downgrade job growth over the last year by 750,000 to 900,000 positions, according to analysts. The report was initially due last Friday but was delayed by a government shutdown. Data on Tuesday showed U.S. retail sales unexpectedly flatlined in December, causing traders to nudge up bets on Federal Reserve rate cuts this year. Benchmark 10-year U.S. Treasury yields slipped to a one-month low of 4.129% on Wednesday, after falling 5 basis points on Tuesday. DOLLAR WILTS AS YEN SHINES The potentially weaker economic outlook and a resurgent yen weighed on the dollar on Wednesday, with the key index tracking the U.S. currency down 0.34% to 96.58, around a two-week low. Trade in Asia was lightened by a holiday in Japan, but a third straight session of gains for the yen had it at 153.13 per dollar and set traders talking about whether it was catching a boost from Tokyo or riding high on dollar softness. It is up about 2.5% on the dollar since Takaichi won a sweeping victory on Sunday, confounding some expectations that concern about her stimulus plans would keep pressure on the currency and on bonds. "The fact that she has had such a landslide victory in a way is giving a lot more policy clarity to investors," said Gupta, adding that the threat of government intervention to boost the yen still loomed in the background. Nikkei futures rose on Wednesday as Asian stocks climbed, though the cash market was shut for a holiday. Gold rose back above $5,000 an ounce, while bitcoin slipped 2% to around $67,000. https://www.reuters.com/world/china/global-markets-wrapup-1-pix-2026-02-11/

2026-02-11 00:43

BEIJING, Feb 11 (Reuters) - China's second-ranking official, Premier Li Qiang,inspected rare earth facilities in the southern province of Jiangxi on Tuesday, state news agency Xinhua reported, using the visit to hint at intensifying competition with the U.S. over strategic minerals. Such pre‑holiday inspections are traditionally moments for China's top leadership to telegraph policy direction before Lunar New Year festivities begin. Wednesday's readout subtly pointed to how access to components essential to everything from autos to smartphones has become one of Beijing's most potent bargaining chips in negotiations with Washington. Sign up here. Rare earths are also key to the manufacture of weapons. "The important value of rare earths in developing advanced manufacturing and promoting green and low-carbon transformation is becoming increasingly prominent," Li was quoted as saying, a veiled reference to the turmoil manufacturers were plunged into last year when China abruptly tightened rare earth export controls after Washington further restricted Chinese investment in the U.S. "It is necessary to promote the deep integration of industry, academia, research and application, (and) expand the application of rare earth technology," Li added. Analysts say the U.S. and China face a contest to guarantee long-term access to the critical minerals, one that could see Beijing gain a new foothold in global corporate decision-making should it follow through and introduce legislation requiring companies using even trace amounts of Chinese rare earths to report their intentions to its commerce ministry. Li did not directly mention the U.S. in his recorded remarks. He visited a research institute under the Chinese Academy of Sciences think tank, the report added, along with several unnamed enterprises in the rare earth production line. U.S. Vice President JD Vance last week unveiled plans to marshal allies into a preferential trade bloc for critical minerals, proposing coordinated price floors as Washington escalates efforts. https://www.reuters.com/world/asia-pacific/chinas-li-inspects-rare-earth-facilities-hints-leverage-us-rivalry-2026-02-11/