2025-04-22 06:05

US stocks end sharply higher with earnings in focus Dollar index edges higher after falling on Monday Bessent forecasts de-escalation in US-China trade tensions NEW YORK, April 22 (Reuters) - U.S. stocks rebounded on Tuesday from the previous day's selloff as investors focused on earnings, while the dollar rose after U.S. Treasury Secretary Scott Bessent said in a closed-door meeting that he believes there will be a de-escalation in U.S.-China trade tensions. U.S. Treasury long-term yields dipped after moving higher on Monday. Sign up here. Bessent also described future negotiations with Beijing as a "slog" that has not started yet, according to a person who heard his closed-door presentation to investors at a JP Morgan conference. Investor confidence has been shaken by U.S. President Donald Trump's multi-front tariff battles, which investors worry could create severe disruption in world trade and hurt the economy. The International Monetary Fund on Tuesday slashed its forecasts for growth in the United States, China and most countries, citing the impact of U.S. tariffs now at 100-year highs. Investors on Tuesday also continued to assess Trump's criticism of the Federal Reserve Chair Jerome Powell. Trump this week criticized Powell for not cutting interest rates, which raised concerns about the president's influence over the central bank and added to concerns about U.S. economic stability. Trump said last week he believes Powell will leave his job if Trump asks him to do so, although Powell himself has said he would not. It is unclear whether Trump has the authority to fire Powell, though lawsuits over unrelated firings by Trump are being watched as possible proxies. The first-quarter earnings season for U.S. companies picked up steam. Shares of industrial conglomerate 3M Co (MMM.N) , opens new tab were up 8.1% after the company beat first-quarter profit expectations, while it noted a likely hit to 2025 profit from tariffs. Results from Alphabet (GOOGL.O) , opens new tab are due later this week. In stocks, "overall, the trend is down, but it's not a fire sale, get rid of everything. People are looking for opportunity and pockets of value, which are there," said Oliver Pursche, senior vice president, adviser for Wealthspire Advisors in Westport, Connecticut. "All of the soft (economic) data points are weakening but the hard data continues to be robust. That's one of the things that investors are grappling with," he said. Minneapolis Fed President Neel Kashkari said the Fed's monetary policy independence was foundational and the key to better economic outcomes. The Dow Jones Industrial Average (.DJI) , opens new tab rose 1,016.57 points, or 2.66%, to 39,186.98, the S&P 500 (.SPX) , opens new tab rose 129.56 points, or 2.51%, to 5,287.76 and the Nasdaq Composite (.IXIC) , opens new tab rose 429.52 points, or 2.71%, to 16,300.42. Mega-cap names were up sharply, including Apple (AAPL.O) , opens new tab, which gained 3.4%. Shares of Tesla (TSLA.O) , opens new tab were slightly higher in after-hours trading after the company reported first-quarter total gross margin that beat analysts' estimates, while the company missed estimates for first-quarter revenue. Shares of Coinbase Global (COIN.O) , opens new tab were up 8.6% as bitcoin extended recent gains. Bitcoin was up 4.61% to $91,360.62. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 12.25 points, or 1.56%, to 795.36. The pan-European STOXX 600 (.STOXX) , opens new tab index ended up 0.25%. The dollar regained some ground. The U.S. dollar index , which measures the greenback against six other major currencies, was up 0.6% at 98.937, after sinking as low as 97.923 in the previous session, a level not seen since March 2022. The dollar was up 0.42% at 141.470 yen , after earlier falling below the psychological 140 level for the first time since mid-September. Fears that Trump's trade policies could lead to a U.S. economic slowdown provided some demand for U.S. government bonds. Benchmark 10-year yields were last at 4.391%, about one and a half basis points lower than Monday. Recent weakness in the dollar, along with demand for safe-havens, helped gold hit another all-time high of $3,500.05 earlier in the day. Spot gold was last at $3,425.91 an ounce. Oil prices ended more than $1 a barrel higher as new U.S. sanctions against Iran and rising stock markets helped spark a recovery. Brent crude futures rose $1.18, or 1.8%, to settle at $67.44, while the U.S. West Texas Intermediate crude contract for May , which expired on Tuesday's settlement, gained $1.23, or 2%, to close at $64.32. The more actively traded WTI June contract also gained 2% to settle at $63.47. https://www.reuters.com/markets/global-markets-wrapup-1-2025-04-22/

2025-04-22 06:03

LITTLETON, Colorado, April 22 (Reuters) - China's power system has notched up several new clean energy generation records during the January to March quarter of 2025, cementing the country's position as the global leader in clean electricity production. Total clean electricity generation in China during the first quarter of the year was just over 951 terawatt hours (TWh), according to data from energy think tank Ember. Sign up here. That was the highest first-quarter total on record, was up 19% from the same period in 2024, and sharply exceeded the growth pace of clean power in other major markets, including Europe and the United States. The growth in clean output also helped lift its share of China's generation mix to a record 39% for the January to March quarter, up from a 34% share during the same months last year. SOLAR SHINES Wind farms were China's largest source of clean power during the opening quarter of 2025, with the 307 TWh of wind electricity accounting for a record 13% share of total generation during the quarter. However, solar farms registered the largest overall output increase from the opening quarter of 2024, with total solar generation expanding by 48% to 254 TWh. Solar's share of total generation was a record 10%. New capacity helped both solar and wind assets generate more electricity than hydro dams for the first time during the January to March period, ensuring that renewable energy sources continue to expand their share in China's generation mix. Hydro power output was 7% higher in the first quarter of 2025 from the same months of 2024 at 226 TWh, while nuclear output was 13% up at 117 TWh. FOSSIL CUTS Thanks to sharply higher supplies of clean power, China's utilities were able to reduce output from coal and natural gas plants during the January to March window from the year before. Coal-fired power output - which remains China's largest overall electricity source - declined by 4% from the opening quarter of 2024 to 1,421 TWh, while coal's share of the generation mix fell to 58% from 63%. Gas-fired plant output also shrank by 4% to 67 TWh, while total fossil fuel production also dropped by 4% to 2,445 TWh. GLOBAL TRENDS The expansion in China's clean power output dwarfs the growth pace of clean power in other major markets. The 19% swell in China's clean power generation during January to March from the year before compares to just a 6% expansion in clean generation in the United States and a 5% contraction in clean power output in Europe. And this year's growth pace follows China's 15% expansion in clean generation in 2024, which was more than double the 6% expansion posted by both Europe and the United States last year. China's clean generation lead over Europe and the United States looks set to swell further in the coming months as China's mammoth solar farms boost overall clean output to its annual peak around July and August. Fossil fuel-fired generation in China also looks set to grow heading into the summer, as the higher temperatures across the country tend to trigger increased demand for power-hungry air conditioning systems. But with hydro dam production also set to peak during the summer alongside solar, China's overall clean electricity generation looks set to keep growing to ensure that 2025 sets another record for clean power output in the country. The opinions expressed here are those of the author, a market analyst for Reuters. https://www.reuters.com/sustainability/climate-energy/china-sets-new-clean-electricity-milestones-during-q1-2025-maguire-2025-04-22/

2025-04-22 06:02

Europe relies heavily on natural gas imports Surge in LNG production to keep global prices low in coming years Government reserves would act as critical buffer in case of supply disruption LONDON, April 22 - European governments may have a rare window of opportunity to build up strategic gas stockpiles in the coming years to help manage supply shocks that could become more common if geopolitical tensions keep rising. Europe has long been dependent on energy imports, particularly natural gas. North Sea production, primarily in Norway, is the main regional source but accounts for only around a third of consumption. Sign up here. The dangers of this acute dependency were laid bare when Moscow started reducing its huge volume of supplies to Europe in the lead up to its 2022 invasion of Ukraine, plunging the region into its biggest energy crisis in decades. Europe has successfully reduced Russian pipeline imports to near zero since then, but it has consequently become highly dependent on liquefied natural gas imports, at a huge cost to businesses, consumers and governments. LNG today makes up over a third of European supplies, with 45% coming from the United States and another 19% from Russia in 2024. Beyond LNG, Europe imports gas from Norway, North Africa and Turkey via pipeline. This might seem like a relatively diversified supply matrix. But it isn't hard to imagine scenarios that could severely disrupt supplies: physical or cyberattacks on North Sea infrastructure, civil war in Algeria or Libya, Gulf Coast hurricanes, or war with Iran and subsequent disruption in the Straits of Hormuz, a choke point for 20% of the world's oil and gas. In another scenario, which might have seemed far-fetched only a few months ago, the United States could restrict exports of oil and gas in order to lower domestic prices under the 1950 Defense Production Act , opens new tab, which grants the president control over supply of critical materials and services. STRATEGIC THINKING Given the growing list of potential risks, Europe would be wise to create a comprehensive plan for storing and managing natural gas to avoid a repeat of the 2022 shock. Several major economies, including the United States, Britain, EU members, China and Australia, today hold strategic oil reserves, typically equivalent to 90 days of their fuel consumption. These strategic petroleum reserves, created following the 1973 Arab oil embargo, have been tapped several times to help with severe disruptions, including in the wake of the Ukraine war, the 2011 civil war in Libya and Hurricane Katrina in 2005. Europe already has huge gas storage facilities in underground salt caverns and aquifers that have capacity to hold around a quarter of Europe's annual consumption of around 400 billion cubic metres, when combining the EU and Britain. These inventories are regularly filled during the summer months to be drawn on in winter. LNG import terminals also offer a modest amount of additional storage capacity. These are commercial inventories that are mostly governed by market forces. The European Union has tried to centrally manage reserves since 2022, introducing rules that require countries to fill 90% of storage capacity by November 1. But the requirements have led to rising prices, thus complicating traders' effort to refill storage. The EU has also tried to jointly buy LNG in large volumes in order to reduce costs, but had little traction in the market. Therefore, a government-run storage system that buys and sells gas independently and with state financing appears to be a more viable solution to prepare for emergencies. RIDE THE WAVE How much gas can and should Europe store? Those are complex questions given costs and technical restrictions. Europe could emulate its oil SPR system, which holds at least three months-worth of demand, but that seems a tall order given the significant cost it would entail of around $34 billion at today's prices and the storage capacity currently available. Such scale might not be required, however. Holding just two months’ worth of LNG imports in strategic reserves, or around 20 bcm, would offer the European market a significant buffer against a rupture in supplies, buying precious time to reroute LNG cargoes to the region, similar to how the SPR helped deal with oil market disruption. A transatlantic tanker voyage typically lasts around two weeks. European governments could use some of the many depleted oil and gas fields dotted across the North Sea to store strategic gas reserves. Such a programme would certainly not be cheap: 20 bcm of gas is valued at $7 billion at today's benchmark TTF prices, and then there is the cost of building the infrastructure. But a wave of new LNG supply is set to come on stream in the next few years, mostly in the United States and Qatar, which should help keep gas prices relatively low and steady compared to recent volatility. Taking advantage of these favourable conditions to build up a comprehensive gas storage mechanism would leave the region much better prepared for whatever emergency is next coming down the pike. ** The opinions expressed here are those of the author, a columnist for Reuters. ** Want to receive my column in your inbox every Thursday, along with additional energy insights and trending stories? Sign up for my Power Up newsletter here. https://www.reuters.com/business/energy/europe-can-ride-lng-wave-build-strategic-gas-reserves-bousso-2025-04-22/

2025-04-22 05:54

April 22 (Reuters) - Bitcoin , the world's largest cryptocurrency, rose 5.01% to $91,713.49, after earlier breaking through the $90,000 for the first time since March as U.S. President Donald Trump's trade policies have rocked global markets. Sign up here. https://www.reuters.com/world/middle-east/dollar-wallows-near-3-year-low-trumps-attacks-fed-chief-unnerve-traders-2025-04-22/

2025-04-22 05:03

Administration moves to rapidly slash regulations through new executive orders EPA opens door to exemptions for air, water rules while formally undertakes deregulation process Environmental groups ready to launch legal defense of clean air, water rules April 22 (Reuters) - U.S. environmental groups say they are hiring lawyers and preparing for a major legal showdown with President Donald Trump's administration over its rapid-fire and sweeping efforts to sidestep federal regulations on oil, gas and coal development. The preparations will pose a test for the Trump administration’s strategy since January of relying mainly on emergency authorities and executive orders to slash what it views as obstructions to a surge in fossil fuel energy production. Sign up here. In the last two weeks, Trump issued an executive order directing agencies to sunset every existing energy regulation by next year and, in a separate memorandum, said those agencies may repeal certain regulations without allowing the public to weigh in. Federal officials have also notified companies that they can seek exemptions to clean air regulations via email, exempted dozens of companies from mercury and air toxics limits, fast-tracked a controversial oil pipeline tunnel in the Great Lakes, and dispensed with a court-ordered environmental review of thousands of oil and gas leases on federal lands. Those actions test existing law, attorneys and policy experts said, including the provisions of the Administrative Procedure Act of 1946 that require agencies to publish notices of proposed and final regulations and allow the public to comment on them. "They really are kicking it into high gear now," Dan Goldbeck, director of regulatory policy at the conservative think tank American Action Forum, said in an interview. "They are trying to push some of these legal doctrines a bit to see if they can implement a new policy framework." Environmental group Earthjustice said it is hiring attorneys as it prepares to challenge some of Trump’s moves. The organization has 10 lawyer positions currently posted and wants to increase that amount substantially this year, adding to its existing stable of around 200 lawyers, it said. Earthjustice and other groups say they want to be ready to sue once Trump’s agencies begin to implement his directives, including his order to sunset all federal energy regulations. "President Trump's proposal is almost comically illegal," said Sambhav Sankar, Earthjustice senior vice president for programs. "If any federal agency actually tries doing this, we'll see them in court." Waiting until the administration moves on Trump's orders is key, though, according to the groups. "We can't sue over the president's delusional thinking, but what we can do is sue when agencies try to implement that delusional thinking," said David Bookbinder, director of law and policy at the Environmental Integrity Project (EIP). The White House did not respond to a request for comment about the potential for legal challenges from environmental groups. Last week, the Interior and Commerce Departments handed environmental lawyers a possible target when they proposed a rule that would allow agencies to permit projects that degrade the habitats of endangered species, EIP's Bookbinder said. "This is what, in some sense, we've been waiting for - not big pronouncements from the White House," he said. Challenging the two-year exemptions for coal-fired power plants from mercury and air toxics limits may prove harder, said Zach Pilchen, senior counsel at Holland & Knight, who served in both the first Trump and Biden administrations. Trump relied on a provision of the Clean Air Act passed by Congress in 1990 that enables the president to exempt certain sources for national security reasons or if mitigating technology is not available. "This is uncharted territory here," Pilchen told Reuters. "That provision has never been tested and it could be somewhat difficult to bring a challenge in court." He said that among other things, the Clean Air Act has a judicial review provision governing lawsuits over actions by the Environmental Protection Agency administrator, but it does not specifically mention actions by the president. Earthjustice's Sankar said his organization expects to have to challenge the administration's actions repeatedly over the coming years. He pointed to the government's resistance to a U.S. Supreme Court order that it facilitate the return of a Salvadoran man mistakenly deported and now being held in a notorious prison in El Salvador. "Normally in impact litigation, once you win a case, the government changes its behavior in other similar cases to comply with the precedent," said Sankar, adding that he did not expect the administration to follow precedent anymore. https://www.reuters.com/sustainability/climate-energy/environmental-lawyers-get-ready-pounce-trumps-energy-deregulation-moves-2025-04-22/

2025-04-22 05:03

MUMBAI, April 22 (Reuters) - The Indian rupee treaded water on Tuesday as mild dollar inflows helped offset the impact of the Chinese yuan's decline, with traders expecting the rupee to hold a slightly positive bias in the near term. The rupee was nearly flat at 85.13 per U.S. dollar as of 10:05 a.m. IST. Sign up here. The local currency has steadied after a five-day winning streak that lifted it by more than 1.5% as the dollar sank to a three-year low against major peers. On the day, weakness in the Chinese yuan squeezed Asian currencies, after the yuan's daily fix - set by the central bank - moved lower despite broader weakness in the greenback. Wavering investor confidence in U.S. assets amid concerns about the impact of sweeping changes to trade policy and threats to central bank independence has weighed on the dollar. It has declined by over 9% against major peers since Donald Trump took over as U.S. President. "Further losses cannot be ruled out if Trump’s policies undermine the credibility (institutional stability and integrity, sound monetary policy, and fiscal discipline) painstakingly rebuilt after the Global Financial Crisis," DBS Bank said in a note. The U.S. economy could slow unless interest rates are lowered immediately, President Donald Trump said on Monday, repeating his criticism of Federal Reserve Chair Jerome Powell. However, the dollar weakness has offered some breathing room to emerging market assets. On the day, dollar offers from two foreign banks supported the rupee, a trader at a private bank said. A pickup in foreign portfolio inflows, both for Indian equities and debt, has also supported the rupee over recent sessions, the trader added. India's benchmark equity index, the Nifty 50 (.NSEI) , opens new tab is up about 2.3% over 2025 so far, outperforming the MSCI's Asia ex-Japan equity index, which is down nearly 2% on the year. https://www.reuters.com/world/india/rupee-little-changed-wedged-between-modest-inflows-weaker-yuan-2025-04-22/