2025-04-09 11:23
Commodities hit by escalating US-China trade war Metals, palm oil prices decline amid recession fears Copper hits eight-month low, iron ore slides 3% in China Robusta and arabica coffee futures hit four-month lows SINGAPORE/LONDON April 9 (Reuters) - Oil prices fell to a four-year low on Wednesday while several commodities, including coffee, tumbled as the trade war between China and the U.S. intensified. Asian and European shares also fell on Wednesday as the rollout of steep U.S. retaliatory tariffs, including a 104% duty on some Chinese goods deepened fears over a global recession. Sign up here. "Crude oil extended losses amid signs of escalation in the trade war," ANZ said in a note. "Copper has lost nearly 10% since Trump announced his reciprocal tariffs on major trading partners." The United States said on Tuesday that the higher tariffs on imports from China would take effect shortly after midnight, even as the Trump administration moved to quickly start talks with other trading partners targeted by sweeping duties. Oil prices dropped to their lowest in more than four years. "Fears of weaker global oil demand, combined with the OPEC+ decision to loosen output more quickly than expected, have created a toxic cocktail fueling concerns of an oversupplied oil market," said SEB analyst Ole R. Hvalbye. Brent crude was down 2.5% at $60.31 a barrel, while West Texas Intermediate Futures were at $57.02. by 1045 GMT. Oil has lost about one-fifth of its value since Trump announced higher tariffs on its trading partners on April 2, the biggest five-day drop since March 2022. Analysts at Morgan Stanley lowered their quarterly price forecasts for Brent crude by $5 a barrel to $65 for Q2, $62.50 for Q3 and $62.50 for Q4 2025. COFFEE AND GAS World coffee and cocoa prices hit fresh multi-month lows. "In our view, the bull market (in coffee) is likely over unless a fresh fundamental catalyst — such as a frost — emerges. The breathless headlines about tariffs will likely continue," said broker and consultant Michael J Nugent. Both robusta and arabica coffee futures traded on the ICE exchange hit their lowest in more than four months, while London and New York cocoa , hit five-month lows. In other soft commodities traded, raw and white sugar, and , hit one-month lows. Copper extended its decline on Wednesday, with Chinese prices touching an eight-month low, after still higher U.S. tariffs were imposed on top metals consumer China. Benchmark three-month copper on the London Metal Exchange (LME) was down 0.1% to $8,650.50 per metric ton by 0940 GMT. LME copper has tumbled by 20% since touching its highest in more than nine months on March 26 at $10,164.50. In the European gas markets the benchmark Dutch front-month contract was down 2.3% at 34.80 euros per megawatt hour (MWh) or $11,26/mmBtu by, LSEG data showed. However, some markets bucked the wider trend. Gold prices climbed 2% as traders sought a safe haven amid the market turmoil. Chicago soybeans rose for a third session, rebounding from four-month lows hit earlier in the week, aided by rising prices in Brazil and a softer dollar. https://www.reuters.com/markets/commodities/commodities-oil-suffers-biggest-5-day-drop-since-2022-metals-plunge-trade-war-2025-04-09/
2025-04-09 11:08
U.S. tariffs to hit export market economies, industry group says Industry association head warns of possible decline in exports China domestic EV sales rise, outselling gasoline cars in March BEIJING, April 9 (Reuters) - China's car exports will likely face greater than forecast pressure this year as U.S. tariff hikes hit the economies of important overseas markets hard, potentially curbing consumer demand, a Chinese auto industry association said on Wednesday. China ships very few cars to the United States, which imposed a 100% tariff on imported Chinese electric vehicles under the previous administration of President Joe Biden. Sign up here. However, Cui Dongshu, the secretary general of the China Passenger Car Association (CPCA), said the sweeping tariffs announced by President Donald Trump last week were expected to have a major indirect impact on export sales. "The abrupt hike in U.S. tariffs will have a disastrous impact on economies such as Southeast Asia, and thus our exports to these markets will be impacted more than expected," Cui said. Southeast Asian nations were hit with some of Trump's heftiest tariffs. Cui said automakers should also be cautious about expansion plans in the United States' southern neighbour Mexico, which is also in the crosshairs of Trump's tariff offensive. He warned of a potential decline in car exports, a downward revision from a January forecast that had already foreseen export growth cooling to 10% this year from 25% in 2024 when China was the world's top exporter for a second year running. Car exports fell 8% in March from a year earlier, reversing an 11% increase in February, CPCA data showed. Notably, joint ventures and luxury brands exported 47,000 vehicles last month, down 45% year-on-year. Exports of Trump adviser Elon Musk's Tesla (TSLA.O) , opens new tab EVs produced at its Shanghai plant slumped 82.4% to 4,701 vehicles in March. Its exports of China-made vehicles were down 56.9% year-on-year to 38,147 in the first quarter, per CPCA data. Domestically, car sales rose 14.4% in March from a year earlier, as government-subsidised trade-ins bolstered demand for EVs and plug-in hybrids, despite deepening deflationary pressures in the world's largest auto market. Passenger vehicle sales hit 1.97 million units last month, and were up 6.1% to 5.18 million units in the first quarter, according to CPCA. EVs and plug-in hybrids outsold gasoline cars for the first time in four months to make up 50.4% of overall sales in March. The program, likened to the U.S. "cash-for-clunkers" stimulus, rewards a shift toward EVs with higher subsidies and had covered 2 million cars as of early this year, as households remained cautious about spending amid job and income worries. Chinese EV giant BYD (002594.SZ) , opens new tab, reliant on its home market for 90% of global sales, beat Tesla in global EV deliveries for the second straight quarter in the January-March period. https://www.reuters.com/business/autos-transportation/chinas-car-sales-rise-144-year-march-2025-04-09/
2025-04-09 11:08
MOSCOW, April 9 (Reuters) - Russia's defence ministry said in a statement on Wednesday that Ukraine had carried out six attacks on Russian energy infrastructure over the past day, in violation of a U.S.-brokered moratorium on hitting energy infrastructure targets. Ukraine and Russia agreed to pause strikes on each other's energy facilities last month, but both sides have repeatedly accused each other of breaking the moratorium. Sign up here. In statements published on the Telegram messenger app, the ministry said that Kyiv had damaged energy infrastructure in Russia's Rostov and Kursk regions, as well as in the Russian-controlled part of Ukraine's Zaporizhzhia region. It also said that Ukraine had mounted two failed strikes in Russia's Krasnodar region, including on a compressor station serving the TurkStream pipeline, which sends gas from Russia to Turkey via the Black Sea. Reuters was unable to verify the battlefield reports. https://www.reuters.com/world/europe/russia-says-ukraine-violated-moratorium-energy-infrastructure-strikes-six-times-2025-04-09/
2025-04-09 10:51
April 9 (Reuters) - The pound hit a one-year low versus the euro and a new 7-month low versus the yen on Wednesday, as a U.S. asset selloff spooked investors, triggering a rush into safe-haven currencies. Stocks, the dollar and U.S. Treasuries took a hit on Wednesday, as U.S. tariffs on world economies kicked in. Sign up here. Prime Minister Keir Starmer said on Monday that Britain will fight to secure an economic partnership with the United States while also working to lower trade barriers with key partners. Against the euro, which has benefited from the flight out of the dollar, the pound fell 0.3% to 86.09 pence after hitting 86.35, its lowest level since April 23. It reached 185.48 against the yen , its lowest since mid-September. "With global investor sentiment so weak and volatility so elevated, it was only a matter of time before investors ditched the UK currency in favour of safer alternatives with current account surpluses," said George Vessey, lead forex and macro strategist at Convera. He recalled that the pound is a pro-cyclical currency that "appreciates in good times and depreciates in bad times". Investors also anticipate more Bank of England (BoE) rate cuts as they expect an economic slowdown to spill into the UK. Markets are now pricing in around 82 basis points of reductions to the BoE's benchmark rate by December, up from about 43 basis points at the end of March. They also fully price a 25-basis-point rate cut in May. Sterling rose 0.3% against the dollar at $1.2810. Most economists think Trump's tariffs will be negative for growth globally, but there is less consensus about the medium-term implications for inflation. Analysts said the prospect of loosening the fiscal rules to face the negative economic impact of tariffs remained a concern for markets as it could weaken market perception about the stability of the British government's finances. https://www.reuters.com/markets/currencies/sterling-hits-one-year-low-versus-euro-investors-rush-into-safe-havens-2025-04-09/
2025-04-09 10:47
RAVENNA, Italy, April 9 (Reuters) - Eni (ENI.MI) , opens new tab expects investors interested in a minority stake in its renewables and retail arm, Plenitude, to value the business at more than 10 billion euros ($11 billion) including debt, one of the Italian energy group's executives said on Wednesday. Under its so-called satellite strategy, Eni plans to sell a second minority stake in Plenitude after Swiss fund Energy Infrastructure Partners (EIP) bought an initial stake that valued the business at 10 billion euros. Sign up here. "We have received binding offers for another Plenitude stake ... There are five bidders," Eni's Chief Transition and Financial Officer, Francesco Gattei, said on the sidelines of an energy conference in Ravenna. Gattei said that recent market volatility triggered by U.S. trade tariffs had not dented interest in Plenitude. Eni has evaluated preliminary offers and will soon move to the second phase of the process to seek binding bids and discuss governance and contractual details, Gattei said. The expectation is that there will be a premium compared with the value established in the first transaction, he said without commenting on media reports that mentioned a valuation of up to 13 billion euros. Eni last month sold 30% of its biofuel business Enilive to U.S. fund KKR (KKR.N) , opens new tab. The Italian group's long-term strategy is opening up its so-called satellite operations to outside investors including investment funds and private equity firms to raise funds for energy transition purposes. Gattei said these satellite operations are expected to generate about 13 billion euros of cashflow in the next four years. ($1 = 0.9069 euros) https://www.reuters.com/business/energy/investors-value-plenitude-more-than-10-bln-euros-new-deal-eni-says-2025-04-09/
2025-04-09 10:42
Parliament speaker praises Nabiullina for protecting economy Nabiullina says high interest rate keeps rouble stable Says investment up by a quarter in last three years Nabiullina says trade wars represent new risk MOSCOW, April 9 (Reuters) - Russia's Central Bank Governor Elvira Nabiullina won rare praise in parliament on Wednesday for shielding the economy from Western sanctions imposed in response to Moscow's military operations in Ukraine, a sign she has cemented her position. Nabiullina has faced criticism in recent months over her handling of the country's battle with inflation, which led to the benchmark interest rate climbing to its highest level since the early years of President Vladimir Putin's rule more than 20 years ago. Sign up here. Much of the criticism has been voiced in parliament, with communist and nationalist deputies accusing her of acting on orders from the International Monetary Fund (IMF) to destroy the economy. The attacks had fuelled rumours of her imminent removal as Putin considers replacing her with a more flexible technocrat. But the tone in parliament on Wednesday was different. "The leadership of the central bank, as well as the parliament's banking committee, should be praised for doing everything in order to protect our country's financial system," influential Duma speaker Vyacheslav Volodin said. He cited the creation of the national payment system, which kept transactions running when Visa and Mastercard pulled out of the country and many Russian banks were cut off from the SWIFT banking messaging system, as Nabiullina's main achievement. 'COUNTING ON DISORGANISATION' In the early days of Russia's operations in Ukraine, Nabiullina came under fire from war hawks who questioned her loyalty to Putin, while war critics likened her and her team members to Adolf Hitler's war production minister, Albert Speer. Speaking in the Duma, Nabiullina listed recent threats such as sanctions on Russia's financial infrastructure introduced last year, including the Moscow Stock Exchange, which stopped trading in dollars and euros. "They were counting on a serious disorganisation of our financial system but that did not happen. Trading partially shifted to a different format. The calculation of official exchange rates did not stop for a single day," she said. Nabiullina countered some of the criticism saying that despite high interest rates investment was at 20% of GDP in 2024, the highest level since mid-2000s, and has grown by one quarter in the last three years. Nabiullina said Western sanctions had complicated cross-border payments but had no major impact on exports and imports as the regulators and businesses had developed alternative channels including cryptocurrency. She defended high interest rates, saying her opponents' warnings about mass bankruptcies, economic stagnation and recession had not materialised. "The key interest rate protects the stability of the rouble through maintaining price stability, supports people's real incomes and creates conditions for balanced economic growth," she said. Nabiullina said that amid a global trade war and market turbulence the central bank should make sure a slowdown in inflation is sustainable before embarking on a rate-cutting cycle. "The tectonic changes in global trade are unfolding before our eyes, and it is still very difficult to judge where they will lead the global economy and how they will affect Russia," she said. https://www.reuters.com/markets/europe/tectonic-shifts-global-trade-represent-new-risk-says-russian-central-bank-2025-04-09/
