2025-05-13 06:52
US and China reach deal to temporarily slash tariffs Tariff pause may reduce need for Fed rate cuts, Kugler says US CPI data due at 1230 GMT May 13 (Reuters) - Gold recovered on Tuesday as bargain-hunters stepped in after prices hit a more than one-week low in the previous session, pressured by a U.S.-China tariff truce that lifted appetite for riskier assets and dented bullion's safe-haven appeal. Spot gold was up 0.6% at $3,254.39 an ounce, as of 0639 GMT. Bullion recorded a 2.7% decline in the previous session. Sign up here. U.S. gold futures were up 1% at $3,258.70. After two days of negotiations in Geneva, U.S. and China announced tariff reductions for the next three months, with U.S. tariffs on Chinese imports dropping from 145% to 30% and Chinese duties on U.S. imports falling to 10% from 125%, leading to a surge in global shares. The U.S. and China had imposed tit-for-tat tariffs on each other last month, triggering a trade war. "There is some value-buying happening on gold at current levels which is helping to prop up the price, despite the generally better outlook for global growth with the US and China on better terms," said KCM Trade Chief Market Analyst Tim Waterer. "The consolidation move in the dollar has allowed the gold price to make a mild push higher." Federal Reserve Governor Adriana Kugler said the pause on import levies reduces chances that the U.S. central bank will need to lower interest rates in response to an economic slowdown. Traders await the U.S. Consumer Price Index report, due later in the day, for fresh signals on the Fed's monetary policy trajectory. The market is expecting a 55-basis-point rate cut this year by the Fed, starting September. "If the inflation data happened to produce a downside miss this could take some momentum away from the USD, which could see gold make forward progress," Waterer said. Gold, traditionally considered a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment. Meanwhile, Citi projected a continued short-term consolidation in the $3,000 to $3,300 range and downgraded the 0-to-3-month price target to $3,150. Spot silver rose 1.5% to $33.10 an ounce, platinum climbed 1.2% to $987.85 and palladium was up 0.6% at $950.95. https://www.reuters.com/markets/commodities/gold-languishes-near-more-than-1-week-low-after-us-china-tariff-truce-2025-05-13/
2025-05-13 06:51
Zelenskiy will attend talks only if Putin does, says aide Kremlin yet to say whether Putin will attend Trump's envoys will travel to Istanbul for the talks Europe works on more sanctions on Russia KYIV, May 13 (Reuters) - President Volodymyr Zelenskiy said on Tuesday he would attend talks with Russia on the war in Ukraine this week only if Vladimir Putin is also there, and goaded him by saying the Russian leader was scared to meet him face-to-face. The Kremlin has yet to say whether Putin will take part in the talks scheduled to be held in Istanbul on Thursday, more than three years into the deadliest conflict in Europe since World War Two. Sign up here. The planned talks have become the main focus of peace efforts led by U.S. President Donald Trump, who said he would send Secretary of State Marco Rubio and has also offered to attend. Trump is also sending senior envoys Steve Witkoff and Keith Kellogg, three sources familiar with the plans said. Zelenskiy said he wanted to negotiate an unconditional 30-day ceasefire as a step toward ending the war, and that Putin should take part in talks because "absolutely everything in Russia" depends on him. "We want to agree on a beginning to the end of the war," Zelenskiy told a press conference. But he added: "He (Putin) is scared of direct talks with me." Zelenskiy said he expected the U.S. and the European Union to impose "strong sanctions" if talks did not take place. Moscow and Kyiv have both sought to show they are working towards peace after Trump prioritised ending the war, which has raged since Russia's full-scale invasion of Ukraine in February 2022. Russian bombs killed at least three people in Ukraine's Kharkiv region on Tuesday, a local official said. Putin on Sunday proposed direct talks with Ukraine, after ignoring a Ukrainian offer for an unconditional 30-day ceasefire. Trump publicly told Zelenskiy to accept the proposal. The Ukrainian leader then said he would be waiting for Putin in Istanbul on Thursday, though the Kremlin chief had never made clear he intended to travel himself. Asked who would represent Russia at the talks, Kremlin spokesperson Dmitry Peskov said: "As soon as the president sees fit, we will announce it." TRUMP MAY ATTEND During a speech in Saudi Arabia, Trump said Rubio would attend the talks on Thursday, as well as others. "We'll see if we can get it done," he said. Kellogg, in an earlier interview on Fox Business Network, said Trump would join the talks in Istanbul if Putin showed up. "We're hoping President Putin shows up as well, and then President Trump will be there. This could be an absolutely incredible meeting," he said. "We can get peace, I really believe, pretty fast if all three leaders sit down and talk." Kellogg told Fox Ukraine was willing to accept a "ceasefire in place" in which Ukrainian and Russian forces would each back up 15 kilometres (9 miles), creating a demilitarized zone. International forces would be stationed west of the Dnipro River as a deterrent. Ukrainian officials have not publicly said what ceasefire terms it may accept. Russia has said it would not accept international forces in Ukraine. Ukraine's embassy in Washington did not immediately respond to a request for comment. Newly elected Pope Leo promised Zelenskiy on Monday he would do his best to help bring about a just and lasting peace, a Zelenskiy aide said. Reuters reported last year that Putin was open to discussing a ceasefire with Trump but that Moscow ruled out making any major territorial concessions and demanded that Kyiv abandon ambitions to join NATO. Ukraine has said it is ready for talks but a ceasefire is needed first, a position supported by its European allies. Russian Deputy Foreign Minister Sergei Ryabkov was quoted by Russian news agencies as saying Moscow was ready for serious talks on Ukraine but doubted Kyiv's capacity for negotiations. The agencies quoted him as saying realities "on the ground" should be recognised, including the incorporation of what Moscow calls "new territories" into Russia - a reference to territory in Ukraine that is occupied by Russian forces. U.S. officials want Russia to agree to a comprehensive 30-day land, air, sea and critical infrastructure ceasefire, a senior U.S. official said. https://www.reuters.com/world/rubio-discusses-way-forward-ukraine-ceasefire-with-european-counterparts-2025-05-13/
2025-05-13 06:49
JOHANNESBURG, May 13 (Reuters) - Exxaro Resources (EXXJ.J) , opens new tab said on Tuesday it has reached an agreement to buy manganese mines in South Africa in a deal worth 11.67 billion rand as it diversifies into green transition minerals. The South African coal miner entered into a binding agreement to buy shares and claims in manganese assets held by Ntsimbintle Holdings and OM Holdings, it said in a statement. Sign up here. The coal miner has been seeking to diversify into manganese and copper, as it positions to benefit from surging demand for the minerals, vital in the global transition from polluting fossil fuels to cleaner energy technologies. "This acquisition provides Exxaro with a strong entry point into the manganese sector," Ben Magara, who took over as CEO in April, it said in the statement. South Africa is the world's biggest producer of the steelmaking ingredient. Manganese is also used in lithium-ion ore batteries for electric vehicles. The deal gives Exxaro exposure to four operating manganese mines in South Africa's Northern Cape province. The mines have long-term contracts with customers in China and India where Exxaro sells its coal, it said. https://www.reuters.com/markets/deals/south-africa-coal-miner-exxaro-agrees-deal-buy-manganese-assets-2025-05-13/
2025-05-13 06:49
UK jobs market is slowing, official figures show Tax data shows 33,000 fewer people employed in April Vacancies fall by most in more than a year Wage growth slows by more than expected LONDON, May 13 (Reuters) - Britain's jobs market showed further signs of a slowdown as employment fell and growth in wages cooled, according to official data published on Tuesday that is likely to reassure the Bank of England that inflation pressures are waning. Economists said the figures reflected concerns among employers about a tax increase imposed on them by finance minister Rachel Reeves and over U.S. President Donald Trump's trade war. Sign up here. Provisional tax authority data showed the number of employees fell by 33,000 in April after a 47,000 drop in March. Vacancies fell further below their pre-COVID pandemic level as they fell by 42,000 - the most in more than a year - in the three months to April to 761,000, the Office for National Statistics said. Average weekly earnings, excluding bonuses, rose by 5.6% in the first three months of 2025 compared with the same period last year, the slowest increase since the three months to November last year, the ONS said. A Reuters poll of economists had pointed to regular wage growth of 5.7%. "While the labour market continues to slow, and there is some evidence of the impact of the increase in national insurance ... there is nothing to suggest it immediately fell off a cliff in response to the shock," Luke Bartholomew, deputy chief economist at fund management firm Aberdeen, said. "Combined with the better trade news recently, there is nothing here to make the Bank of England regret its decision to say the easing cycle will continue to be only 'gradual'," Bartholomew said. Private-sector pay excluding bonuses - a gauge of domestic inflation pressure watched closely by the BoE - also rose by 5.6%, weaker than an increase of 5.9% in the three months to February. The BoE is monitoring the inflation pressures in Britain's labour market closely as it considers whether to speed up its pace of interest rate cuts to shield the economy from the fallout from Trump's policies. Jack Kennedy, senior economist at global jobsite Indeed, said the BoE was likely to remain on guard about the risks posed by still high wage growth in Britain. Last week, the central bank's Monetary Policy Committee split three ways on its May interest rate decision with five members backing a quarter-point cut, two favouring a bigger half-point reduction and two voting to keep rates on hold. "A more material and sustained cooling of wage pressures would open the door to faster interest rate cuts, but the MPC's split vote in May underlines the continued caution over persistent inflation pressures," Kennedy said. The ONS said Britain's unemployment rate, which is based on a survey that is being overhauled and is no longer considered an accurate gauge of the jobs market, rose to 4.5% from 4.4%, in line with the Reuters poll. Sterling was little changed after the data was published. https://www.reuters.com/sustainability/sustainable-finance-reporting/uk-wages-grew-by-56-first-three-months-2025-2025-05-13/
2025-05-13 06:20
NEW DELHI, May 13 (Reuters) - India is looking at levying import duties on some products made in the United States to counter Washington's tariffs on steel and aluminium products, a document submitted to the World Trade Organization shows. "The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States," the document dated May 12 said. Sign up here. It did not say what kind of products might be subjected to tariffs. In March, the U.S. imposed 25% levies on steel and aluminium imports - an extension of tariffs first imposed in 2018 during U.S. President Donald Trump's first term. India, the world's second-largest producer of crude steel, said in its document to the WTO that the measures would affect $7.6 billion worth of India-made products imported into the United States. In addition to the duties on steel and aluminium, Trump's administration has threatened reciprocal tariffs of 26% on Indian goods. The two countries are trying to clinch a trade deal, with New Delhi offering to slash its tariff gap with the U.S. by two-thirds. India has some of the world's highest tariffs on imports, and Trump has previously called India a "tariff abuser". India has also levied tariffs of its own on steel. Last month, it imposed 12% temporary tariffs to curb imports of cheap steel, primarily from China. In addition to its attempts to stem supply domestically, New Delhi is also trying to secure greater access for Indian steel exports through trade talks with partner countries. https://www.reuters.com/markets/commodities/india-proposes-counter-duties-against-us-notice-wto-shows-2025-05-13/
2025-05-13 06:18
US-China tariff pause lifts sentiment but worries linger Traders reel in bets on Fed rate cuts NEW YORK/LONDON, May 13 (Reuters) - The dollar fell and major U.S. stock indexes rose on Tuesday on news that U.S. consumer inflation picked up less than expected in April when President Donald Trump unveiled a raft of tariffs that has wreaked havoc on global markets. European shares edged higher for a fourth straight session, and global equities (.MIWD00000PUS) , opens new tab also gained. Sign up here. Crude oil prices rose, boosted by a temporary cut in U.S.-China tariffs. The U.S. and China said on Monday they would pause their trade war for 90 days, bringing down reciprocal duties and removing other measures while they negotiate a more permanent arrangement. The agreement has reignited investor appetite for stocks, cryptocurrencies and commodities and Tuesday's inflation figures helped power that move. The Bureau of Labor Statistics said its consumer price index rose 0.2% in April, bringing the annual increase down to 2.3% from 2.4%. Economists polled by Reuters had forecast a monthly rise of 0.3% and a yearly rise of 2.4%. The report was good news, said Bill Adams, chief economist for Comerica Bank in Dallas, in a note. "Inflation should be manageable for most consumers and businesses in 2025." The S&P 500 and the Nasdaq advanced on the softer-than-expected inflation numbers and easing of U.S.-China trade tensions. The S&P 500 (.SPX) , opens new tab rose 42.36 points, or 0.72%, to 5,886.55 and the Nasdaq Composite (.IXIC) , opens new tab rose 301.74 points, or 1.61%, to 19,010.09. The Dow Jones Industrial Average (.DJI) , opens new tab fell 269.67 points, or 0.64%, to 42,140.43, under pressure from UnitedHealth's slide after the company suspended its annual forecast and its CEO stepped down. The dollar pulled back from sharp gains in the prior session on the inflation data. It was last down 0.79% against a basket of currencies. The euro rose up 0.94% at $1.1191. "The report basically indicates that the Fed needs to be very cautious and that the stand that they have taken is probably the right course, for now," said Peter Cardillo, chief market economist at Spartan Capital in New York. European shares ended slightly higher, ending up 0.1%, around their highest level since late March. Emerging market stocks (.MSCIEF) , opens new tab fell 5.03 points, or 0.43%, to 1,156.82. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab closed 0.51% lower at 603.95, while Japan's Nikkei (.N225) , opens new tab rose 1.43% to 38,183.26. Following the Geneva talks over the weekend, the U.S. said it will cut tariffs on Chinese imports to 30% from 145%, while China said it will slash duties on U.S. imports to 10% from 125%. The shift in U.S.-China trade relations has led traders to reduce their expectations for Federal Reserve rate cuts, as they believe policymakers may have more leeway to lower rates if the risks to inflation abate. Traders are now pricing in 56 basis points of cuts this year, down from forecasts for over 100 basis points in April, when fears about the impact of Trump's tariffs were at their worst. "The Fed has embarked on what seems to be the right course and unless there's any real movements in terms of trade war ending by June, it looks like a June rate cut remains in question," Cardillo said. Economists, fund managers and analysts have said that while the 90-day pause is welcome, it has not changed the bigger picture. "When all is said and done, tariffs will still be dramatically higher and will weigh on U.S. growth," said Christopher Hodge, chief U.S. economist at Natixis. Ratings agency Fitch estimates the U.S. effective tariff rate is now 13.1%, a notable decline from 22.8% prior to the agreement but still at levels unseen since 1941 and above the 2.3% that prevailed at the end of 2024. The benchmark U.S. 10-year note yield rose 1.6 basis points to 4.473%, and the 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 0.2 basis points to 4.004%. In commodities, spot gold rose 0.61% to $3,253.51 an ounce. U.S. gold futures settled 0.6% higher at $3,247.80. Brent crude futures settled at $66.63 a barrel, up $1.67, or 2.57%. U.S. West Texas Intermediate crude finished at $63.67, up $1.72 or 2.78%. https://www.reuters.com/markets/global-markets-wrapup-1-2025-05-13/
