2026-01-29 11:51
Jan 29 - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Finance and Markets Sign up here. Global markets are digesting a torrent of new information on the earnings, currency and political fronts – yet they are holding up reasonably well. The S&P 500 eclipsed 7,000 points briefly on Wednesday and looks like it might do so again. The Federal Reserve meeting yesterday – and the decision to leave rates unchanged – did nothing to disturb the existing market view. Chair Jerome Powell sidestepped most of the edgy questions about Fed independence. But now all eyes look to the oil market as U.S. tensions with Iran heat up. I’ll get into all that and more below. But first, check out my latest column on how a stronger euro could turn from a dream into a nightmare for Europe. And listen to the latest episode of the Morning Bid daily podcast. Subscribe to hear Reuters journalists discuss the biggest news in markets and finance seven days a week. MIXED MEGACAPS AND TEHRAN TENSIONS The varying fortunes of U.S. tech giants amid their AI spending splurge became apparent on Wednesday as the megacap earnings releases got underway. While Meta’s stock surged as much as 10% overnight on plans for a whopping 73% increase in capital spending this year, Microsoft fell back more than 6% on disappointing results from its cloud computing business. Tesla was up 2% as it switched focus from ebbing EV sales to AI spending and robotaxis. Apple reports later on Thursday. As expected, the Federal Reserve left rates unchanged on Wednesday, with Chair Jerome Powell citing a “clearly improving” economic outlook and sounding relaxed about labor market strains and above-target inflation. He indicated that any renewed easing likely wouldn’t come until mid-year, lobbing the ball into his successor’s court as he approaches the end of his term as chair in May. Powell remained tight-lipped with reporters when asked about his future and the criminal probe launched by the Trump administration. Long-term Treasury yields continue to nudge higher, however, with attention turning to rising oil prices. Crude benchmarks rose more than 1% on Thursday on fresh U.S.-Iran military tensions. President Trump on Wednesday threatened Iran with a “far worse” attack if it does not make a deal on nuclear weapons, prompting a firm response from Tehran, which said it would retaliate “like never before” to any U.S. action. Trump is reportedly weighing options for targeted strikes against Iranian leaders and security forces to inspire renewed protests – with the objective, according to two U.S. sources, of creating conditions for “regime change”. One source noted that Trump has not yet made a final decision on military action. Meantime, precious metals continued their stratospheric rise on Thursday, with gold nearing $5,600 per ounce and silver touching $120 per ounce. Gold prices have risen over $1,000 so far in January. Both oil and gold are also supported by this week's plunge in the dollar across the world, with the greenback ebbing again on Thursday despite Treasury Secretary Scott Bessent's restatement of the U.S. government's slightly ambiguous “strong dollar” policy yesterday. Chart of the day Meta's stocks surged 10% overnight as a 24% jump in revenue in the December quarter and a forecast-beating first quarter outlook helped fund data center spending, which is expected to rocket by 87% this year to $135 billion. Microsoft's shares fell 6% on its results, however, as somewhat disappointing growth in its Azure cloud-computing business questioned its huge AI-related capital spending. Today's events to watch * U.S. November trade balance (8:30 AM EST), revised Q3 labor productivity (8:30 AM EST), weekly jobless claims (8:30 AM EST), November manufacturers’ new orders (10:00 AM EST) * U.S. 7-year note auction (12:00 PM EST) * Chinese President Xi Jinping holds a press conference with British Prime Minister Keir Starmer * U.S. corporate earnings: Apple, Blackstone, Caterpillar, Comcast, Dow, Honeywell, Lockheed Martin, Mastercard, Visa Want to receive the Morning Bid in your inbox every weekday morning? Sign up for the newsletter here. You can find ROI on the Reuters website , opens new tab, and you can follow us on LinkedIn , opens new tab and X. , opens new tab Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/business/finance/global-markets-view-usa-2026-01-29/
2026-01-29 11:50
Jan 29 (Reuters) - South Africa's energy regulator on Thursday approved an application by Eskom to reduce electricity tariffs by 35% for two distressed ferrochrome operations battling high power costs. More than a dozen smelters have shut down in South Africa in recent years, leading to thousands of job losses, largely due to high electricity costs which have surged by more than 900% since 2008. Sign up here. State power utility Eskom in December sought the National Energy Regulator of South Africa's approval for a tariff reduction for Samancor Chrome as well as a joint venture between Glencore (GLEN.L) , opens new tab and Merafe Resources (MRFJ.J) , opens new tab in a bid to avert smelter closures and save jobs. Samancor Chrome and the Glencore-Merafe joint venture started processes late last year to shut down their smelters and lay off workers, citing viability problems mainly related to high electricity costs. The approval is subject to the government funding the difference between the current tariff of 1.36 rand ($0.0864) per kilowatt hour and the 87.74 South African cents per kilowatt hour the two ferrochrome firms will pay for 12 months starting in January 2026, NERSA official Willibrod Majola said during a virtual briefing. The cost of the shortfall should not be borne by standard tariff customers, Majola added. South Africa, the world's biggest chrome ore producer, has lost its position as the world's top processor of chrome into ferrochrome to China mainly due to high electricity costs. Energy-intensive smelters combine chromium and iron to produce ferrochrome, which is mainly used in steel production. ($1 = 15.7430 rand) https://www.reuters.com/sustainability/boards-policy-regulation/safrica-energy-regulator-approves-power-cost-relief-ferrochrome-makers-2026-01-29/
2026-01-29 11:49
MOSCOW, Jan 29 (Reuters) - Russian President Vladimir Putin on Thursday told his UAE counterpart Mohammed bin Zayed Al Nahyan that Russia was closely monitoring the situation in Iran and wanted to discuss it with him in Kremlin talks. Putin made the comment at the start of talks with the UAE president whose country has recently hosted peace talks between Russia and Ukraine. Sign up here. Earlier on Thursday, Kremlin spokesman Dmitry Peskov said that the potential for talks between the U.S. and Iran had not yet been exhausted, and that any use of force against Tehran could create "chaos" in the region and lead to dangerous consequences. Peskov was commenting a day after U.S. President Donald Trump urged Iran to come to the table and make a deal on nuclear weapons or face a possible U.S. attack. https://www.reuters.com/world/europe/russias-putin-tells-uae-leader-he-wants-discuss-iran-tensions-with-him-2026-01-29/
2026-01-29 11:44
Jan 29 (Reuters) - Futures linked to Canada's main stock index rose on Thursday, as precious metals extended their rally and oil advanced on lingering geopolitical concerns, while investors assessed Big Tech results from the U.S. March futures on Toronto's S&P/TSX Composite Index were up 0.3% as of 6:05 a.m. ET. Sign up here. Spot gold gained 1.4%, briefly hovering near $5,600 per ounce, supported by safe-haven demand amid continuing geopolitical uncertainty and concerns over the U.S. Federal Reserve's autonomy. The sell-off in the U.S. dollar eased on Thursday, but the currency remained close to multi-year lows. Silver prices were steady, while copper and other metal prices rose. Oil prices gained, with Brent crude futures surging past $70 per barrel for the first time since September amid fears of a potential U.S. strike on major oil producer Iran. Wall Street futures were largely flat as investors weighed earnings from Microsoft (MSFT.O) , opens new tab, Tesla (TSLA.O) , opens new tab and Meta (META.O) , opens new tab. While Tesla and Meta rose in premarket trading after disclosing plans for capex increases, Microsoft failed to impress with its cloud revenue growth. Rising commodity stocks helped Toronto's benchmark stock index (.GSPTSE) , opens new tab close higher on Wednesday, recovering from earlier losses triggered by the Bank of Canada flagging uncertainty around future policy moves. The Canadian central bank kept benchmark rates unchanged, as widely expected. The Fed also held rates steady on Wednesday, with Chair Jerome Powell noting that the risks to both inflation and employment have "diminished, but still exist." In corporate news, Celestica (CLS.TO) , opens new tab raised its full-year revenue outlook for 2026 after the bell on Wednesday, while Canadian Pacific Kansas City (CP.TO) , opens new tab slightly missed fourth-quarter profit estimates. FOR CANADIAN MARKETS NEWS, CLICK ON CODES: TSX market report Canadian dollar and bonds report CA/ Reuters global stocks poll for Canada , Canadian markets directory https://www.reuters.com/business/tsx-futures-rise-gold-extends-rally-oil-advances-2026-01-29/
2026-01-29 11:43
NIAMEY, Jan 29 (Reuters) - Gunfire and loud explosions echoed around Niger’s international airport in Niamey shortly before midnight in what two security sources described as a "terrorist attack", before calm returned to the capital on Thursday morning. Businesses and schools were open in the city of about 1.5 million, and people were moving about freely, apart from a cordoned-off zone near the airport which was heavily patrolled by defence and security forces, the Reuters witness said. Sign up here. Two security sources described the overnight incident to Reuters as a "terrorist attack" and said security had been reinforced around the airport following an internal alert about an imminent attack on the site. They said a store of uranium currently held at the airport had not been affected by the attack. Nigerien authorities moved the uranium yellowcake late last year from the Somair mine in Arlit to the Niamey base for export after seizing control of the mine from French nuclear group Orano, according to two other sources, who estimated it to be around 1,000 metric tons of uranium. Two more sources confirmed that the uranium was still at the airport at the time of the incident Wednesday night. Yellowcake, or uranium oxide concentrate, is a powdered form of uranium which can be processed to make fuel for nuclear power production. A reinforced security presence was visible on the main thoroughfares of the capital on Thursday, especially on the road leading toward the airport, the witness added. MORE THAN AN HOUR OF GUNFIRE HEARD, WITNESS SAYS The heavy gunfire began shortly before midnight on Wednesday and continued for over an hour, the Reuters witness said. A video shared on social media platform X appeared to show the city's night skyline illuminated by gunfire, though Reuters has not independently verified the footage. A spokesperson for Niger's military government, which seized power in a July 2023 coup, was not immediately available for comment. The West African nation, like its Sahel neighbours Mali and Burkina Faso, has struggled to contain attacks from jihadist groups linked to al Qaeda and Islamic State that have killed thousands and displaced millions in the three nations. An American missionary was kidnapped in Niamey in October, leading the United States to warn its citizens against travelling to the country. Five Indian citizens, a Swiss citizen and an Austrian citizen were kidnapped in more remote parts of the country last year. https://www.reuters.com/world/africa/sustained-gunfire-loud-blasts-heard-nigers-capital-2026-01-29/
2026-01-29 11:07
Fed holds rates steady, pausing easing cycle Fed fund futures suggest next cut could be June Investors waiting for Trump's nominee to replace Powell as chair NEW YORK, Jan 29 (Reuters) - Wall Street is anticipating a pause in the Federal Reserve's monetary easing cycle to last through the remainder of Chair Jerome Powell's term that ends in May, forcing investors to bank on further rate cuts later in the year to support bullish positioning. The Fed held rates steady on Wednesday at the end of its two-day policy meeting, pausing an easing cycle which has supported U.S. stocks. Interest rate futures priced in the next rate cut at the June meeting, which would be under the next Fed chair. Trump has repeatedly said he expects to announce his pick soon. Sign up here. "Our two cents is that the economy is doing okay, but inflation is a bit sticky, and the Fed was right to stand pat," said Tim Holland, chief investment officer at wealth management service provider Orion in Omaha, Nebraska. "We would be very surprised if we get another rate cut with Mr. Powell at the helm.” While investors anticipated the Fed to pause its easing cycle at the meeting, they are banking on the central bank maintaining a dovish posture with more cuts later in the year that can support equities and the economy. Markets are pricing in the next likely cut in June, but some investors say further easing could come sooner, while others say that inflation worries could prevent more cuts entirely this year. Investors noted the calm market reaction to Wednesday's decision, given that Fed meetings often result in wild swings for assets. The benchmark S&P 500 (.SPX) , opens new tab ended little changed on the day, after breaching the 7,000 level for the first time during the session. The U.S. dollar index largely held its daily gain following the meeting, as it rebounded from a four-year low. The benchmark 10-year Treasury yield moved modestly higher on the day to about 4.25%. "The market didn’t react much to this, largely because Powell has two more meetings," said David Seif, chief economist for developed markets at Nomura. "To the extent that Powell wants to give forward guidance, there's a clear expiration." MORE CUTS IN 2026? A weakening jobs picture had prompted the Fed -- which seeks to maintain stability in employment and inflation -- to lower rates last year to its current level of 3.50%-3.75%. The committee cut that rate by a quarter of a percentage point at its meetings in September, October, and December following a nine-month pause. On Wednesday, Powell said the job market has shown "some signs of stabilization," while inflation "remains somewhat elevated." "You would need for those dynamics to change in order for the Fed to cut rates again during Chairman Powell's term," said Michael Arone, chief investment strategist at State Street Investment Management. Fed funds futures suggested a less than 30% chance of a cut at either of the next two meetings in March and April, but a 65% chance of one in June, according to LSEG data late on Wednesday. Markets were still pricing in nearly two more quarter-point cuts by December. Still, Drew Matus, chief market strategist at MetLife Investment Management, said a cut could come in March, adding that "people are being maybe a little overly optimistic that the outlook is very clear." Matus said the current environment is a "good opportunity to be moving up in quality for assets," including shifting away from high-yield fixed income and other riskier strategies. NEXT CHAIR, NEXT CUT? Investors are trying to anticipate policy once Powell hands over the baton, including the extent to which the next leader will lean more dovish. Concerns over the Fed's ability to operate free of political interference ratcheted up after the revelation earlier this month that Powell faced a threatened criminal probe, with the Fed chief at the time calling it part of a push by Trump to pressure the central bank for rate cuts. Candidates to take the role include Fed Governor Christopher Waller, former Fed Governor Kevin Warsh and BlackRock's chief bond investment manager, Rick Rieder, and Trump economic adviser Kevin Hassett, although Trump has also said he preferred to keep Hassett in his current post. "We're starting to think about what Fed policy looks like under a new chair, especially now that I think we're really coalescing around a couple key candidates," said Michael Reynolds, vice president of investment strategy at Glenmede. Glenmede is overweight small-cap stocks, with the potential for one or two more rate cuts this year helping to "reinforce that thesis," Reynolds said. Trump on Tuesday said he will soon announce his Fed chair pick, and predicted interest rates would decline after the new chair takes over. Matthew Vegari, head of research at Clearwater Analytics, said he does not think that a rate cut decision would be solely at the new leader's discretion. "Would a more dovish Fed chair sway the other voting members? I'm not sure," Vegari said. "The chair can exert a lot of influence, but these are seasoned professionals at the top of their game." https://www.reuters.com/business/investors-bet-later-fed-cuts-support-markets-after-pause-2026-01-29/
