2025-05-27 12:18
TORONTO, May 27 (Reuters) - Canada's main stock index is set to largely consolidate its recent gains through the rest of 2025 and could be at risk of another correction as the domestic economy shows signs of a slowdown due to U.S. tariffs, a Reuters poll found. The S&P/TSX Composite index (.GSPTSE) , opens new tab has rebounded nearly 16% from its lowest closing level in April to post a record closing high on Monday at 26,073.13. Sign up here. Since the start of the year, the index has gained 5.4%, outperforming major U.S. indexes such as the S&P 500. It has been helped by a heavy weighting in metal mining shares as safe-haven demand lifted the price of gold to record highs. "We still believe that peak uncertainty is behind us but the Canadian economy is starting to show the impact from tariffs," said Angelo Kourkafas, a senior global investment strategist at Edward Jones. Canada sends about 75% of its exports to the United States, including steel, aluminum and autos which have been hit by hefty U.S. duties, while Canada's unemployment rate was at 6.9% in April, its highest level since November. The median prediction of 21 equity strategists and portfolio managers in the May 15-27 poll was for the S&P/TSX Composite index to edge 0.7% higher to 26,250 by year-end, slightly less than the 26,500 mark expected in a February poll. "As companies continue to grapple with the implications of tariffs and recalibrate their inventory strategies, alongside the inclination to delay capital expenditures, profit margins will likely face pressure," said Victor Kuntzevitsky, a portfolio manager at Stonehaven, Wellington-Altus Private Counsel. CORRECTION? Seven out of 13 analysts who answered a separate question said corporate earnings would be lower in 2025 compared with 2024 while eight out of 13 said a correction was likely or highly likely over the coming three months. A correction, or a drop of 10% or more from the peak, was confirmed in April before the market rebounded. "We are focusing more on dividend payers as it will protect one's portfolio better during a market correction," said Ben Jang, a portfolio manager at Nicola Wealth. "Over time, falling interest rates are expected to drive outflows from money market instruments." The Bank of Canada has cut its benchmark interest rate by 2-1/4 percentage points since last June, to 2.75%, to support the economy. Lower borrowing costs and the potential for trade deals could eventually see the market take another leg higher, analysts say. The index was expected to reach 27,750 by the end of next year, a gain of 6.4%. "Once there is more clarity on trade and lower interest rates start filtering through the economy in 2026, we see a reacceleration in earnings," Kourkafas, from Edward Jones, said. (Other stories from the Reuters Q2 global stock markets poll package) https://www.reuters.com/markets/tsxs-gains-set-slow-trade-war-hits-canadas-economy-2025-05-27/
2025-05-27 12:12
CAIRO, May 27 (Reuters) - Oman's overall budget revenue fell 7% year-on-year to 2.635 billion Omani rials ($6.85 billion) in the first quarter of 2025 as oil revenue dropped, Oman's state news agency reported on Tuesday, citing data from the finance ministry. Oil revenue for the OPEC+ member was down 13% at 1.468 billion rials in the first three months of the year, from 1.688 billion rials in the first quarter of 2024, with gas revenue down 2% to 436 million riyals. Sign up here. Public spending rose 4% to 2.771 billion rials from a year earlier, according to the state news agency. The sultanate's public debt eased to 14.3 billion rials from 15.3 billion rials. The finance ministry paid more than 304 million riyals in arrears to the private sector during the quater. ($1 = 0.3850 Omani rials) https://www.reuters.com/world/middle-east/omans-first-quarter-budget-revenue-down-falls-oil-income-drops-2025-05-27/
2025-05-27 11:53
More than 200 emergency workers respond to blast and blaze Hospital says it is treating injured people, no official details Environmental team testing at site, no results yet available BEIJING, May 27 (Reuters) - A large explosion and fire at a chemical plant in China's eastern province of Shandong sent thick plumes of smoke into the sky on Tuesday, as authorities raced to find the cause. Authorities did not immediately release information on any casualties. Sign up here. A local hospital told the Paper, a state-run media outlet, it was treating individuals injured in the explosion, but declined to disclose further details. More than 200 emergency workers responded to the blast that shook part of a chemical plant operated by Shandong Youdao Chemical in the city of Weifang just before noon. Videos circulating on Chinese social media platforms including Douyin, and verified by Reuters, showed plumes of orange and black smoke billowing into the sky. Windows of nearby buildings were ripped from their hinges by the explosion, one of the videos showed. Government officials urged crews to quickly contain the fire and confirm the number of casualties in a statement issued by China's emergency response authority on Tuesday afternoon. Drone video posted by The Beijing News, a government-run publication, showed smoke emerging from the chemical plant and from a second, unidentified facility nearby. Baidu (9888.HK) , opens new tab maps show other manufacturing companies next to Youdao's plant, including a textile company, a machinery company and a company that makes industrial coating materials. The Weifang Ecological Environment Bureau dispatched staff to test the site of the blast but said there were no results yet available. The bureau advised nearby residents to wear face masks in the meantime, Beijing News reported. Shandong Youdao Chemical is owned by Himile Group, which also owns listed Himile Mechanical (002595.SZ) , opens new tab, shares of which closed down nearly 3.6% on Tuesday. Youdao was established in August 2019 in the Gaomi Renhe chemical park in Weifang, according to the company's website. The plant covers more than 47 hectares (116 acres) and has more than 300 employees. The company develops, produces and sells chemical components for use in pesticides and pharmaceuticals. Blasts at chemical plants in China in recent years have included one in the northwest region of Ningxia in 2024 and another in the southeastern province of Jiangxi in 2023. Two massive explosions at warehouses containing hazardous and flammable chemicals in the Chinese port city of Tianjin in 2015 killed over 170 people and injured 700 more. That incident prompted the government to tighten laws covering chemical storage. An explosion in 2015 at another chemical plant in Shandong killed 13 people. https://www.reuters.com/markets/emerging/large-blast-hits-chemical-plant-chinas-shandong-2025-05-27/
2025-05-27 11:38
NEW DELHI, May 27 (Reuters) - India is likely to see above average monsoon rains for the second straight year in 2025, the government said on Tuesday, retaining its April forecast and keeping alive the possibility of higher farm output and economic growth. The monsoon is expected to total 106% of the long-term average this year, said M. Ravichandran, secretary in the Ministry of Earth Sciences. Sign up here. The India Meteorological Department defines average or normal rainfall as ranging between 96% and 104% of a 50-year average of 87 cm (35 inches) for the four-month season from June to September. The monsoon delivers nearly 70% of the rain needed to water crops and replenish reservoirs and aquifers in India. With nearly half of the country's farmland without any irrigation, it depends on the June-September rains to grow a number of crops. Good rains will help bring down food prices, keep inflation within the central bank's comfort band, and allow the world's biggest rice exporter to ship more of the staple. The country is likely to receive 108% rainfall of the long-term average in June, Ravichandran said. https://www.reuters.com/business/environment/india-retains-forecast-above-average-monsoon-rains-2025-05-27/
2025-05-27 11:37
LONDON, May 27 (Reuters) - The pound ticked lower versus a broadly stronger dollar on Tuesday, yet remained close to a more than three-year high scaled on Monday as reduced bets on Bank of England rate cuts and some brighter economic data lifted the mood. At 1110 GMT, the pound was down 0.13% against the dollar at 1.35470. , not far from the 1.359 it touched on Tuesday, its highest level against the greenback since February 2022. Sign up here. The dollar was stronger against a range of currencies on Tuesday as investors took comfort from U.S. President Donald Trump's decision to delay higher tariffs on the European Union while the yen weakened as Japanese bond yields slumped. But the pound has gained more than 8% against the dollar in 2025 amid erratic U.S. trade policy. Michael Brown, senior research strategist at Pepperstone said while the pound's recent strength is largely a dollar weakness story, there are a few idiosyncratic factors at play. "We did have a much more hawkish than expected May policy decision from the BoE, then compounding that we had hotter than expected UK inflation last week which has seen participants continuing to trim their bets on BoE easing this year." Last week's inflation print erased market expectations for a cut at the Bank of England's next meeting in June. Bets are now heavily weighted to the BoE keeping the rate steady, with 93.6% of traders expecting that outcome . The central bank slashed the bank rate by 0.25 percentage points to 4.25% on May 8. UK economic data has also proved more resilient than expected this year, said Brown. Figures published on Friday showed British retail sales jumped in April. Elsewhere, a survey from the British Retail Consortium on Tuesday showed British shop prices fell slightly overall this month but food price inflation accelerated. Against the euro, the pound was up 0.27% at 83.74 and now in its seventh consecutive week of gains against the single currency. https://www.reuters.com/world/uk/sterling-weakens-versus-dollar-stays-close-over-three-year-high-2025-05-27/
2025-05-27 11:34
BRUSSELS, May 27 (Reuters) - European Union countries backed plans on Tuesday to scale back the bloc's carbon border levy to cover just 10% of the companies currently covered by the scheme, on the grounds that these firms account for nearly all of the emissions involved. Their approval makes it highly likely that the EU will exempt most of the 200,000 importers that had been due to face the world's first carbon border tariff, starting next year. Sign up here. EU countries must negotiate the final changes with the European Parliament, which said last week it would support the proposals. Ministers from EU countries on Tuesday approved the proposed changes at a meeting in Brussels. The EU's carbon border tariff is designed to shield European producers against cheaper rivals in countries with less ambitious climate laws. It will impose a fee on imported goods that is equivalent to the carbon price already paid by EU-based companies under the bloc's CO2 emissions policies. The Commission had proposed the changes in February. It said they would spare smaller businesses from time-consuming bureaucracy without compromising the environmental impact of the policy, as the remaining 10% of importers are responsible for more than 99% of the emissions it covers. Under the changes, the carbon border tariff will apply costs to companies that import more than 50 metric tons per year of goods including steel, cement, aluminium and fertilisers. That would replace the existing rules, under which all individuals or companies importing such goods with a value above 150 euros ($170) would have had to pay the levy from next year. Companies will have to buy permits, starting in 2027, to cover the carbon emissions of importing products from the year 2026. https://www.reuters.com/sustainability/climate-energy/eu-countries-agree-exempt-most-firms-carbon-border-tariff-2025-05-27/
