2025-04-01 06:16

S&P 500, Nasdaq end higher in choppy trading Bond yields fall, yen gains as safe havens garner demand Spot gold hits record high Oil eases as traders weigh slowdown risks NEW YORK/LONDON, April 1 (Reuters) - Global shares edged higher in choppy trading on Tuesday, while safe-haven gold soared to a record peak as markets awaited details of U.S. President Donald Trump's tariff plans. Investors are bracing for Trump's so-called Liberation Day on Wednesday, when he has promised to unveil a massive reciprocal tariff plan. Sign up here. White House spokeswoman Karoline Leavitt said reciprocal tariffs on countries that impose duties on U.S. goods would take effect immediately after Trump announces them, while a 25% tariff on auto imports will take effect on Thursday. An announcement is scheduled on Wednesday for 4 p.m. EDT (2000 GMT), Leavitt confirmed on Tuesday. On Wall Street, the benchmark S&P 500 and the Nasdaq ended higher after losing ground earlier in the session, with gains in consumer discretionary communication services, consumer staples and technology stocks offset by losses in healthcare and financial equities. The Dow finished a shade lower. "In terms of the upcoming tariff announcement, we still don't know which countries they'll be imposed on and what rate. It's fair to say that the administration might not have the final plan ready as yet," Deutsche Bank strategist Jim Reid said. The Dow Jones Industrial Average (.DJI) , opens new tab fell 0.03% to 41,989.96, the S&P 500 (.SPX) , opens new tab rose 0.38% to 5,633.07 and the Nasdaq Composite (.IXIC) , opens new tab rose 0.87% to 17,449.89. European stocks (.STOXX) , opens new tab rallied, recovering from the previous day's bout of profit-taking, particularly in assets that are highly vulnerable to U.S. tariffs. The benchmark pan-European STOXX 600 index, which rose 5.1% in the first three months of the year, ended up 1%, with technology, industrial and financial stocks leading the way. Uncertainty is running high. Various measures of stock, bond and currency volatility have risen sharply in the past few days, reflecting the challenge for investors of trading the unknown. Gold eased after hitting a new record high for a fourth straight session, hitting $3,148.88 per ounce. It fell 0.15% to $3,118.25 an ounce, while U.S. gold futures settled 0.1% lower at $3,146. Mark Malek, chief investment officer at SiebertNXT, said investors are not just faced with uncertainty from tariffs but they are also worried about the possibility of a looming economic slowdown given weakness in recent data. Data from the Institute for Supply Management showed U.S. manufacturing contracted in March after growing for two straight months. A separate report from the Labor Department showed U.S. job openings fell in February. "I can tell you anecdotally that the number of client calls that we've been taking lately has increased and it's not necessarily about tariffs but they are worried about the economy," Malek said. "They are losing confidence, and that's investor confidence - which is a tough thing to fight." Demand for the safety of Treasuries sent yields lower, with benchmark 10-year note yields falling 8 basis points to 4.165%. In Europe, the yield on benchmark German 10-year Bunds fell 0.3 basis point to 2.679%. Investor caution toward U.S. assets has resulted in continued pressure on the dollar, which posted its worst first-quarter performance against a basket of currencies in nine years this year, with a drop of nearly 4%. The Japanese yen held firm, as did the Swiss franc, as traditional safe-haven assets drew demand. The yen strengthened 0.25% against the greenback to 149.57 per dollar. Against the Swiss franc , the dollar weakened 0.07% to 0.884 franc. The euro was down 0.25% at $1.079. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.04%. The Australian dollar strengthened 0.48% versus the greenback to $0.6276. The RBA held rates at 4.1%, having just cut them by a quarter-point in February for the first time in over four years. Bitcoin gained 3.15% to $85,033.03. Oil prices edged lower as traders weighed reciprocal tariffs from Trump and his threats to impose secondary tariffs on Russian crude and attack Iran. Brent futures settled 0.37% lower at $74.49 a barrel. U.S. West Texas Intermediate crude futures fell 0.39% to $71.20. https://www.reuters.com/markets/global-markets-wrapup-1-2025-04-01/

2025-04-01 06:05

RBA holds rates steady at 4.1% amid global uncertainties RBA warns about risks to global growth and Australia from US tariffs Policy statement slightly dovish; markets see chance of May rate cut SYDNEY, April 1 (Reuters) - Australia's central bank on Tuesday left its cash rate steady as widely expected but took a small step towards further easing in a policy meeting dominated by risks of a global trade war. Wrapping up its April policy meeting, the Reserve Bank of Australia (RBA) held interest rates steady at 4.1%, having just cut them by a quarter point in February for the first time in over four years. Sign up here. Markets had seen scant chance of a further easing this week given policy makers had emphasised that they needed to be certain core inflation was under control before acting again. "Monetary policy is well placed to respond to international developments if they were to have material implications for Australian activity and inflation," the board said in a statement. The statement also dropped an explicit reference to being cautious about cutting rates again, in a slightly dovish tone. It also omitted a sentence that upside risks to inflation remain. Governor Michele Bullock, in the post-decision press conference, said the board did not discuss a rate cut this time, and the slightly dovish turn in the statement did not open the door to an easing in May. "We still think there is tightness in the labour market, so at the moment it seems prudent to wait and get a bit more data, a bit more information about labour market and inflation to make sure." The Australian dollar perked up 0.3% at $0.6262, while the three-year bond futures held steady at 96.31. Swaps moved around after the RBA decision and implied a 60% probability of a rate cut at the next policy meeting in May. The recent flow of data has printed largely in line or slightly weaker than expected. A benign inflation reading for February has raised hopes that the quarterly price data due at the end of the month would be tame enough for the RBA to move in May. There are two monthly job reports due before the May meeting. "We view the statement as providing the Board a degree of optionality regarding future monetary policy moves," said Adam Boyton, head of Australian economics at ANZ, who is forecasting just one more rate cut in August. "However, greater market instability and global policy uncertainty could see additional (and earlier) RBA easing." Earlier in the day, data showed retail sales rose a modest 0.2% in February, underscoring consumer demand remained tepid. The steady decision means the centre-left Labor government won't get a rate cut boost in polling ahead of a general election on May 3. Prime Minister Anthony Albanese is struggling in polls over the high costs of living and housing. The central bank has pushed back against easing expectations after the rate cut in February, which already lifted housing prices to a record last month. GLOBAL UNCERTAINTIES Australia's economy has moved past its worst, with consumer spending picking up amid lavish government tax cuts. However, the outlook has been clouded by the spectre of a global trade war as U.S. President Donald Trump imposes a blitz of tariffs on trading partners and is set to announce reciprocal tariffs imminently. Australia is a major exporter of resources to China and tariffs on the world's second-biggest economy's goods could hinder growth there and its demand for commodities. The Federal Reserve has taken a cautious approach to further rate cuts due to concerns Trump's policies will stoke inflation, though investor anxiety over a possible U.S. recession has also risen in recent months. Bullock said the central bank is speaking to its peers in other central banks, particularly small and open economies to make sense of what's going on and what can be expected over the next year. "There is a lot more uncertainty introduced in the international context. What it means for us is not 100% clear. We're cautious. We are going to wait," said Bullock. The RBA added the overseas developments will have an adverse effect on global activity and Australia is vulnerable given its reliance on world trade. Much will depend on China's response to the U.S. tariffs, Bullock said. However, the implications on prices is less clear, with the RBA saying that inflation "could move in either direction." https://www.reuters.com/markets/australias-central-bank-holds-rates-steady-noting-pronounced-global-risks-2025-04-01/

2025-04-01 06:04

Gold hits record high of $3,148.88 Global investors await Trump's tariff announcement on Wednesday Goldman Sachs raises probability of US recession to 35% from 20% April 1 (Reuters) - Gold prices extended their record run on Tuesday, hitting a record high buoyed by safe-haven demand as investors braced for U.S. President Donald Trump's planned announcement on reciprocal tariffs. Spot gold was up 0.3% at $3,133.01 per ounce at 1147 GMT, after hitting an all-time high of $3,148.88 earlier in the day. Sign up here. U.S. gold futures were 0.4% higher at $3,161.60. "Trump's tariff comments and his increasingly volatile stance on Russia's war against Ukraine are proving the perfect chaos for new record gold prices," surpassing even the COVID-19 pandemic five years ago, said Adrian Ash, head of research at online marketplace BullionVault. Trump said on Sunday his reciprocal tariffs to be announced on Wednesday would include all countries, not just a smaller group of 10 to 15 countries with the biggest trade imbalances. On Monday, Goldman Sachs raised the probability of a U.S. recession to 35% from 20% and said it expected more rate cuts by the Federal Reserve. Non-yielding bullion thrives in a low-interest rate environment. Gold's recent bull run has benefited from two drivers - growing demand from central banks beginning in spring 2022, and the return of Western safe-haven seekers this year - said Carsten Menke, analyst at Julius Baer. Geopolitical instability in the Middle East and Europe, and increased flows into gold-backed exchange-traded funds have also supported bullion's rally. Gold closed out its strongest quarter since 1986 on Monday, and climbed over $3,100/ounce, marking one of the most significant upswings in the precious metal's history. On a technical basis, gold's Relative Strength Index (RSI) stands above 70, indicating the metal is overbought. "I’m looking for a long overdue correction before an eventual push towards our target at $3,300... a correction will only get a bit more serious if we break below the $2,955 area," said Ole Hansen, head of commodity strategy at Saxo Bank. Investors now await U.S. job openings data later on Tuesday and the U.S. non-farm payrolls report on Friday. Silver fell 0.7% to $33.85 an ounce and platinum eased 0.8% to $984.51. Palladium steadied at $982.36. https://www.reuters.com/markets/commodities/gold-hits-all-time-high-trumps-tariff-plans-stir-inflation-worries-2025-04-01/

2025-04-01 05:19

BANGKOK, April 1 (Reuters) - Thailand's cabinet has approved reducing electricity prices for the public from May to August, the prime minister said on Tuesday. Sign up here. https://www.reuters.com/business/energy/thai-cabinet-approved-electricity-price-reduction-public-consumption-2025-04-01/

2025-04-01 04:44

SINGAPORE, April 1 (Reuters) - Shell (SHEL.L) , opens new tab has completed the sale of its Singapore refinery and refining assets to a Chandra Asri-Glencore joint venture, the company said on Tuesday, while trade sources noted that the new owners have already started purchasing feedstock. Last year, Shell announced the sale of its Bukom and Jurong islands facility, which dates back to 1961. The deal makes Indonesia-based Chandra Asri, the majority owner of the joint venture, one of Southeast Asia's largest petrochemicals players. Sign up here. Financial terms of the deal, which was earlier slated to close at the end of 2024, have not been disclosed. Shell said that its staff at the site will remain with the new venture, Aster Chemicals and Energy Pte Ltd. Office-based staff have relocated to new premises under the new ownership, according to two sources familiar with the matter. Shell declined to comment on the staffing adjustments. Chandra Asri has already made several open-spec naphtha purchases for Singapore arrivals starting in March as it took charge of Aster's petrochemicals feedstock procurement, according to several sources familiar with the matter. Under Shell, the Jurong Island chemicals site imported around 1.5 million tons per year of naphtha in 2023 and 2024, shiptracking data from Kpler showed. Meanwhile, Swiss trading giant Glencore has made several crude purchases for May and June arrival into Singapore, including from Canada and Kazakhstan, two sources familiar with the purchases said. Both Chandra Asri and Glencore did not immediately respond to a Reuters query for comment, while Shell said that the company had signed crude supply and products offtake agreements that will come into effect following the completion of the sale. https://www.reuters.com/markets/deals/shell-completes-sale-singapore-refining-assets-chandra-asri-glencore-group-2025-04-01/

2025-04-01 04:33

A look at the day ahead in European and global markets from Kevin Buckland The deep breath that global markets are taking in the countdown to Donald Trump's "Liberation Day" tariff announcement looks like it will continue into the European session, with futures there pointing higher. Sign up here. Wall Street's relatively minor respite was magnified in Asia. Some markets such as Hong Kong, Taiwan and South Korea surged back 1% or more from steep declines on Monday. Nerves are definitely still a bit frayed though, with supreme safe haven gold marking an all-time peak for a fourth straight session. To be clear, nothing has really changed: We still are no wiser as to what Trump is set to announce on Wednesday. Any expectations that there might be room for trade partners to negotiate apparently came undone with the U.S. president's statement late on Sunday that essentially every country will be slapped with reciprocal levies. Late on Monday, the White House released an encyclopaedic list of foreign countries' policies and regulations it regards as trade barriers. Trump says he's willing to accept higher consumer prices at home to reset the playing field for global trade, even with a recent hot CPI reading stoking market fears of stagflation. Upping the ante on a potential tariff-triggered slowdown, Goldman raised its estimate on the odds of a recession to 35%, and predicted three Fed rate cuts this year. There's a lot of information about the state of the U.S. economy this week, particularly the job market, with the JOLTS report later today, the ADP report a day later, and monthly payrolls figures on Friday, when Fed Chair Jay Powell is also giving a speech on the economic outlook. In Europe, ECB President Christine Lagarde and fellow board member Philip Lane speak separately at a conference in Frankfurt today, when we get euro-area data on consumer prices, the manufacturing PMI and the jobless rate. Britain will also have the manufacturing PMI, and the Bank of England's Megan Greene gives a keynote speech to the Royal Economic Society in London. Meanwhile, French far-right politician Marine Le Pen plans to appeal as soon as possible an embezzlement conviction that bars her from running in the 2027 presidential election. A front-runner to take over from President Emmanuel Macron, Le Pen maintains her innocence and says the ruling was politicised. Le Pen's five-year public office ban actually cannot be suspended by appeal, although she retains her parliamentary seat until her term ends. Key developments that could influence markets on Tuesday: -Euro-area manufacturing PMI, CPI, unemployment rate -ECB's Lagarde, Lane speak -UK manufacturing PMI -BoE's Greene speaks -US JOLTS report https://www.reuters.com/markets/europe/global-markets-view-europe-2025-04-01/