2025-05-09 07:10

Trump says China tariffs will likely come down from 145% Dollar down 0.3% against its rivals Gold up 2.5% so far this week Several Fed officials scheduled to speak later in the day May 9 (Reuters) - Gold prices rose on Friday and were headed for a weekly gain, supported by a weaker dollar and lingering geopolitical tensions, while focus remained on U.S.-China trade talks due this weekend. Spot gold was up 0.6% to $3,325.20 an ounce at 1134 GMT. The metal has gained 2.5% so far this week. U.S. gold futures were up 0.8% to $3,334.30. Sign up here. The dollar index (.DXY) , opens new tab slipped 0.3%, making gold more attractive for holders of other currencies. "The exaggerated moves (in gold) suggest there is strong buying on the one hand on economic uncertainty, while strong selling is in evidence as some see the higher prices as an opportunity to take profit," said Ross Norman, an independent analyst. "Markets are particularly focused on a possible U.S.-China trade deal ... Equally, minds are also concerned about the India/Pakistan crisis." U.S. and Chinese officials will meet in Switzerland over the weekend, in a possible first step in dialling down the damaging trade war between the world's two biggest economies. Gold, used as a safe store of value during times of political and financial uncertainty, scaled an all-time high of $3,500.05 per ounce last month, boosted by central bank buying, tariff war fears and strong investment demand. On the geopolitical front, Pakistan's armed forces launched multiple attacks using drones and other munitions along India's western border on Thursday night and early Friday, the Indian army said. Also on the radar, several U.S. Federal Reserve officials are scheduled to speak later in the day, potentially providing further insights into the economy and the central bank's policy path. The Fed needs to be patient in assessing how the Trump administration's tariffs affect the economy - especially inflation and unemployment - before making any adjustments to interest rates, Fed Governor Michael Barr said. Elsewhere, spot silver eased 0.2% to $32.44 an ounce, platinum rose 0.6% to $981.94 and palladium climbed 0.4% to $980.15. https://www.reuters.com/markets/commodities/gold-falls-us-uk-trade-deal-weighs-safe-haven-appeal-us-china-talks-focus-2025-05-09/

2025-05-09 07:03

SINGAPORE/BENGALURU, May 9 (Reuters) - Investors have been selling U.S. shares and piling into Asian equity funds, as the Trump administration's tariffs cast a cloud over the U.S. growth outlook and whether years of world-beating gains in U.S. markets may be drawing to an end. Net flows into exchange-traded equity funds that invest in Asia totalled $8.45 billion for the three weeks ended May 7, the highest in about seven months, LSEG Lipper data covering 844 funds listed globally showed. Sign up here. Meanwhile, U.S. equity funds logged a fourth straight week of outflows, totalling $43.5 billion to May 7, as President Donald Trump's trade policies have shaken investor confidence. "There is more awareness of the need for portfolio diversification and the overcrowding in the Magnificent 7 stocks, helping flows to non-U.S. markets including Asia," said Prashant Bhayani, chief investment officer at BNP Paribas Wealth Management. These outflows coincide with good performance and recent rises in currencies across Asia, suggesting a rush of money moving to the region and offering an added attraction for foreign buyers. Valuations and a belief that countries could either strike trade deals or end up beneficiaries from new routes opened up to avoid U.S. levies are also supporting sentiment. Gary Tan, a portfolio manager at Allspring Global Investments, has bought some stocks in ASEAN recently, which he thought were good value. "After the initial tariff shock in April, investors have been selectively investing in market-specific ETFs in countries where they anticipate positive outcomes from tariff negotiations," he said. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab is up more than 4% for the year so far, while the S&P 500 (.SPX) , opens new tab and Nasdaq (.IXIC) , opens new tab have clocked losses of close to 4% and 7%, respectively. The one-year forward price-to-earnings (PE) ratio for Malaysia's benchmark index (.KLSE) , opens new tab, for instance, stands at 17.56, with Taiwan (.TWII) , opens new tab at 14.64 and the S&P 500 at 20.62. "We think the growing need for diversification away from U.S. assets, the dollar weakening towards its long-run fair value over time, coupled with cheaper valuations and lighter positioning, are supportive for Asian equities," said Sunil Koul, global emerging market equity strategist at Goldman Sachs. https://www.reuters.com/business/investors-looking-beyond-us-scoop-up-asian-funds-2025-05-09/

2025-05-09 07:00

LISBON, May 9 (Reuters) - Portugal's largest utility EDP (EDP.LS) , opens new tab on Friday reported a stronger-than-expected 21% increase in first-quarter net profit, after heavy rainfall boosted hydroelectric output in Iberia, where power prices almost doubled. Net profit rose to 428 million euros, beating the average forecast of 368 million euros in an LSEG poll of analysts, even though it did not make a capital gain in the quarter. A year ago it had booked 108 million euros worth of capital gains. Sign up here. Excluding capital gains, recurring net profit rose 69%, it said. Subsidiary EDP Renovaveis (EDPR.LS) , opens new tab, the world's fourth-largest wind energy producer, on Thursday reported a 24% fall in net profit to 52 million euros. EDP said in a statement that total electricity generation rose 5% to 18,300 gigawatt-hours (GWh), sustained by "significant rainfall" during the first three months of the year in Iberia, which filled reservoir volumes to 88% of their capacity. In the Iberian market, first-quarter average electricity spot prices almost doubled year-on-year to 85 euros per megawatt per hour, it said. "It was a good start to the year with solid and sustainable results," Chief Executive Miguel Stilwell de Andrade said. EDP would focus on business execution and efficiency, he added. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 6% to 1.42 billion euros, compared to 1.38 billion euros expected by analysts. As of March, EDP's installed capacity reached 32 GW, 10% more than a year earlier. EDP will announce a new strategic plan in November to "reinforce its commitment to the energy transition and investment in networks and renewables", the CEO said. https://www.reuters.com/business/energy/portugals-edp-reports-21-profit-rise-iberia-rainfall-boosts-hydro-2025-05-09/

2025-05-09 06:51

All eyes on US-China trade talks in Switzerland after US-UK deal Trump says 80% tariff on China 'seems right' Rising Middle East tensions also support oil prices OPEC oil output edged lower in April, Reuters survey finds NEW YORK, May 9 (Reuters) - Oil prices settled nearly 2% higher on Friday and notched their first weekly gains since mid-April as a U.S. trade deal with the United Kingdom turned investors optimistic ahead of talks between top officials from Washington and Beijing. Brent crude futures rose $1.07, or 1.7%, to settle at $63.91 a barrel, while U.S. West Texas Intermediate crude futures advanced $1.11, or about 1.9%, to settle at $61.02. Sign up here. Week-over-week, both benchmarks gained over 4%. U.S. President Donald Trump on Friday said China should open its market to the U.S., and that an 80% tariff on Chinese goods "seems right," a day after he announced a deal lowering tariffs on British car and steel exports, among other agreements with the United Kingdom. "Energy markets - as bearish as they've been - are finally shaking off some of the pessimism and catching the broader market optimism that's showing back up as progress on trade relationships has begun," said Alex Hodes, oil analyst at brokerage StoneX. The UK agreement and Trump's comments on China have raised hopes for similar deals between Washington and Beijing. U.S. Treasury Secretary Scott Bessent was to meet with China's top economic official Vice Premier He Lifeng in Switzerland on May 10. Current U.S. tariffs on Chinese imports stand at 145%. "While prohibitively high, you can't knock the math ... 80% is substantially less than 145%," Hodes wrote to clients. Chinese exports rose faster than expected in April while imports narrowed their decline, customs data showed on Friday, giving Beijing some relief ahead of the talks. UNCERTAIN OUTLOOK Rising hostilities in the Middle East also boosted oil prices this week, Nikos Tzabouras, senior market analyst at trading platform Tradu, said. Israel's military said it had intercepted a missile launched from Yemen towards its territory, days after Oman mediated a ceasefire between the U.S. and Yemen's Houthis, who claimed responsibility for Friday's attack. Still, the outlook for oil prices remains uncertain and will largely depend on the trajectory of the U.S. economy, its trading policies and the enforcement of sanctions on Iran and Russia, said Marcus McGregor, head of commodities research for asset management firm Conning. On Thursday, the U.S. imposed sanctions on a third Chinese independent oil refinery for purchases of Iranian crude, ahead of a fourth round of nuclear talks in Oman this weekend. Keeping a ceiling to oil price gains this week was the planned increase to oil output by the Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+. However, a Reuters survey found that OPEC oil output edged lower in April as production declines in Libya, Venezuela and Iraq outweighed a scheduled increase in output. The survey was just enough to add an extra glimmer to markets already hopeful ahead of the U.S.-China trade talks, PVM analyst John Evans wrote to clients on Friday. https://www.reuters.com/business/energy/oil-prices-little-changed-ahead-sino-us-trade-meeting-2025-05-09/

2025-05-09 06:49

JAKARTA, May 9 (Reuters) - Indonesia plans to change the source of some of its fuel imports from Singapore to the United States as part of negotiations over steep tariffs, its energy minister said on Friday. The United States has imposed a 32% tariff on Indonesian goods, but like other countries, implementation has been paused until July to make room for negotiations. Sign up here. Minister Bahlil Lahadalia said the change of some fuel imports away from Singapore would happen gradually. Indonesia could shift as much as 60% of its total fuel imports from Singapore to the United States in the early stages, he said. "It is almost certain that we will take other fuel imports from other countries, not from that one (Singapore)," he told reporters, adding the shift could happened in the next six months. Increasing fuel imports from the United States is part of a wider proposal that Indonesia has made to Washington to address the tariffs. The government has said that it wants to increase U.S. energy imports by about $10 billion, which also includes buying U.S. fuel, crude oil and liquefied petroleum gas Bahlil has said that as part of the negotiations, Indonesia wants to import 10 times more U.S. crude than now. At present, about 4% of its crude imports are from the United States. State energy firm Pertamina has said that it will be ready to execute the plan and might need to increase its fuel storage capacity in order to store U.S. fuels. https://www.reuters.com/markets/asia/indonesia-eyes-cut-fuel-imports-singapore-favour-us-part-tariffs-negotiations-2025-05-09/

2025-05-09 06:43

China's April soybean imports hit a 10-year low Customs delays hit soybean crushing, tightening soymeal supplies China reduces purchases from the U.S. Brazil's May exports may fall to 12.6 mln tons BEIJING/SINGAPORE, May 9 (Reuters) - China's soybean imports plunged to a 10-year low in April as prolonged customs clearance delays and late Brazilian shipments caused by harvest slowdowns and logistics issues disrupted the usual flow of cargoes, traders and analysts say. Total imports for the month reached 6.08 million metric tons, down 29.1% from the same period last year, marking the lowest level since 2015, according to Reuters calculations based on data from the General Administration of Customs. Sign up here. The customs delays have severely strained China's oilseed processing sector from April through early May, tightening soymeal supplies for its vast livestock industry. Soybean cargoes now take 20-25 days to move from ports to crushing plants, up from the usual 7-10 days, according to four traders, who were granted anonymity given the sensitivity of the issue in China. "Crushing operations have taken a hit," said one source. By early May, several crushing plants in northern and northeastern China had to cut output or halt operations due to backlogs, a trader and analyst said, adding that some feed mills ran out of stock and turned to costly spot cargoes. There has been no official acknowledgement of delays, which come amid the trade war between China and its second-largest soybean supplier. China's customs did not immediately respond to faxed questions about the delay. China's benchmark Dalian soymeal futures briefly rallied in late April but have since retreated, with expectations of incoming Brazilian shipments putting pressure on prices. While crushing activity is gradually recovering, market participants remain cautious about potential port congestion if delays persist. From January to April, soybean arrivals totalled 23.19 million tons, reflecting a 14.6% decline from the 27.15 million tons recorded in the same period last year. Soybean imports are expected to rebound sharply in May and June with some Chinese analysts and traders expecting monthly numbers around 11 million tons. However, Brazil's grain exporters association, Anec, said on Wednesday that total soybean exports could fall to 12.6 million tons in May, potentially limiting how much could be shipped to China. U.S. SOYBEAN PURCHASES DECLINE While Friday's data does not distinguish imports by country of origin, purchases from the U.S. have continued to decline, said Wang Wenshen, an analyst at Shandong-based Sublime China Information. As of the week ending May 1, net soybean sales to China for the 2024/25 marketing year were zero , opens new tab, weekly United States Department of Agriculture data showed. Beijing's 125% retaliatory tariff would virtually halt U.S. soybean imports if no agreement is reached before the marketing season later this year. All eyes are on the upcoming meeting between Chinese and U.S. officials in Switzerland, where U.S. President Donald Trump expects progress on trade and the potential reduction of the 145% U.S. tariff on China. https://www.reuters.com/markets/commodities/chinas-april-soybean-imports-hit-decade-low-customs-delays-disrupt-trade-2025-05-09/