2025-03-26 04:02

SHANGHAI, March 26 (Reuters) - Wall Street firm Morgan Stanley (MS.N) , opens new tab raised on Wednesday its index targets for Chinese shares for the second time this year, citing improved earnings growth forecasts and a more optimistic outlook for the economy and currency. The bank upgraded its year-end index targets for Hong Kong's benchmark Hang Seng Index (.HSI) , opens new tab, Hang Seng China Enterprises index (.HSCE) , opens new tab, MSCI China index (.dMICN00000PUS) , opens new tab, and China's blue-chip CSI300 index (.CSI300) , opens new tab to 25,800, 9,500, 83, and 4,220 points, respectively. Sign up here. "The new and higher index price targets are driven by both moderate increases in earnings growth forecasts and higher valuation targets," the U.S. bank said in a note. It also cited "improved macro and FX outlook forecasts". Morgan Stanley noted that earnings results for the fourth quarter of last year from companies tracked by the MSCI China index "are showing a solid 8% net beat", both in terms of the number of companies and weighted earnings – marking the first time in 3-1/2 years. Chinese stocks have gained momentum this year, with the MSCI China Index rising about 16% so far, outperforming global peers. This rise is fuelled by investor optimism surrounding progress in generative AI and Beijing's stimulus measures aimed at boosting consumption and supporting the broader economy. Developments in trade relations between the United States and China have been a key focus for investors. The White House said last week that U.S. President Donald Trump still intends to impose new reciprocal tariffs on several U.S. trading partners, starting April 2. Morgan Stanley also raised its forecast for China's economic growth in 2025 to 4.5%, up from the previous estimate of 4%. The brokerage revised its yuan predictions to 7.35 per dollar by mid-2025 and 7.50 by the end of this year, compared with its prior forecast of 7.50 and 7.60, respectively. "We have always made the point that currency strength serves as an important factor for Chinese equities, especially for the offshore market. "This is because foreign investors' funding costs are usually in U.S. dollar terms, which means a relatively stronger or less weak currency should be a positive catalyst from an asset allocation perspective." Goldman Sachs (GS.N) , opens new tab shared a similar outlook, expecting "more fundamental upside for China stocks." "However, we expect the bull market to slow and profit-taking pressures to build as the U.S.-China policy and geopolitical calendar turns active once again in the coming weeks," GS said in a note on Wednesday. https://www.reuters.com/world/china/morgan-stanley-raises-chinese-stock-targets-again-earnings-optimism-2025-03-26/

2025-03-26 02:00

Listed companies face restrictions on access to US goods Inspur units targeted for working with Chinese military Other Chinese companies hit for work on supercomputers WASHINGTON, March 25 (Reuters) - The U.S. added six subsidiaries of Inspur Group, China's leading cloud computing and big data service provider, and dozens of other Chinese entities to its export restriction list on Tuesday. The Inspur units were listed for contributing to the development of supercomputers for the Chinese military, the Commerce Department said in a posting. Five of the subsidiaries are based in China and one in Taiwan. Inspur Group itself was placed on the list in 2023. Sign up here. The Inspur units are among about 80 companies and institutes added to the export control list on Tuesday. Over 50 are based in China. Others are in Taiwan, Iran, Pakistan, South Africa and the United Arab Emirates. The listings are intended to restrict China's ability to develop high-performance computing capabilities, quantum technologies and advanced AI, and impede China’s development of its hypersonic weapons program. "We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives," said Commerce Secretary Howard Lutnick. China's foreign ministry, in response to an enquiry on Wednesday, condemned the U.S. move and said the country will take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises. The Chinese embassy in Washington said on Tuesday it firmly opposed "these acts taken by the US and demand that it immediately stop using military-related issues as pretexts to politicize, instrumentalize and weaponize trade and tech issues." The Inspur Group did not immediately respond to a request for comment. The U.S. also seeks to disrupt Iran’s procurement of drones and related defense items and to prevent development of its ballistic missile program and unsafeguarded nuclear activities. The government adds companies to the Commerce Department's Entity List for national security or foreign policy concerns. Companies cannot sell goods to those listed without applying for and obtaining licenses, which are likely to be denied. Commerce official Jeffrey Kessler said the administration aims to prevent "U.S. technologies and goods from being misused for high performance computing, hypersonic missiles, military aircraft training, and UAVs (drones) that threaten our national security." When Inspur Group was placed on the list in 2023, executives from AMD (AMD.O) , opens new tab and Nvidia (NVDA.O) , opens new tab were questioned about their dealings with the company. At the time, chip industry insiders and their advisers said firms were trying to assess whether they had to halt supplying Inspur's subsidiaries. Reuters could not immediately determine whether the U.S. companies continued to do business with the subsidiaries. Nvidia declined to comment, and AMD did not immediately respond to a request for comment. Chinese firms Nettrix Information Industry Co, Suma Technology Co and Suma-USI Electronics are among the other companies added to the list. The U.S. said they were added for helping develop Chinese exascale supercomputers, which can process vast amounts of data at very high speeds and conduct large-scale simulations. The companies have also provided manufacturing capabilities to Sugon, also known as Dawning Information Industry Co (603019.SS) , opens new tab, a computer server manufacturer added to the Entity List in 2019 for building supercomputers used by the military, the Commerce Department said. The companies could not immediately be reached for comment. Other companies were added to the list for acquiring U.S.-origin items to advance China's quantum technology capabilities, and for selling products to companies that supply other listed parties, including Huawei, the tech conglomerate viewed as at the center of China's AI ambitions. The Beijing Academy of Artificial Intelligence (BAAI), a Chinese non-profit new research and development institution that was also targeted by the U.S., said on Wednesday that it was shocked and demanded relevant U.S. departments to withdraw the "wrong" decision. https://www.reuters.com/world/us/us-adds-dozens-entities-export-restriction-list-2025-03-25/

2025-03-26 00:34

Brent, WTI hit three-week highs in the previous session Trump press on Venezuelan, Iranian oil fans bullish sentiment Russia, Ukraine agree to sea, energy truce Coming up: U.S. EIA data on crude inventories at 10:30 a.m. EDT March 26 (Reuters) - Oil prices edged higher on Wednesday on supply concerns with the U.S. stepping up efforts to limit Venezuelan and Iranian oil exports, while a bigger-than-expected drop in U.S. crude inventories also lent support. Brent crude futures gained 15 cents, or 0.21%, to $73.22 a barrel by 0723 GMT, while U.S. West Texas Intermediate crude futures rose 16 cents, or 0.23%, to $69.16 a barrel. Sign up here. Both contracts hit their highest in three weeks in the previous session. "Crude oil prices maintain their bullish bias after Trump's sanctions on Venezuelan oil, raising supply-side concerns," Priyanka Sachdeva, a senior market analyst at Phillip Nova, wrote in a market commentary on Wednesday. On Monday Trump signed an executive order authorizing his administration to impose blanket 25% tariffs under the 1977 International Emergency Economic Powers Act on imports from any country that buys Venezuelan crude oil and liquid fuels. Oil is Venezuela's main export. China, already a target of U.S. import tariffs, is its largest buyer. Trade of Venezuelan oil to top buyer China stalled on Tuesday, as Chinese traders and refiners said they were waiting to see how the order would be implemented and whether Beijing would direct them to stop buying. Washington last week also imposed a new round of sanctions on Iran's oil sales targeting entities including Shouguang Luqing Petrochemical, a "teapot," or independent refinery in east China's Shandong province, and vessels that supplied oil to such plants in China, the top buyers of Iranian crude. The market was also buoyed by American Petroleum Institute data that showed U.S. crude inventories fell by 4.6 million barrels last week, a sign of healthy demand for fuel in the world’s largest economy. Analysts polled by Reuters were expecting a decline of 1 million barrels. Official U.S. government data on crude inventories is due on Wednesday. The upswing in oil prices is a temporary phenomenon, with the potential economic slowdown due to Trump's tariffs keeping a lid on price gains, Phillip Nova's Sachdeva said. Despite some threats to supply, executives from the world's top commodity trading houses expect a well-supplied oil market this year and soft prices, with concerns remaining over global demand growth. Further capping oil prices, the U.S. reached deals with Ukraine and Russia to pause attacks at sea and against energy targets, with Washington agreeing to push to lift some sanctions against Moscow. Kyiv and Moscow both said they would rely on Washington to enforce the deals, while expressing scepticism that the other side would abide by them. https://www.reuters.com/business/energy/oil-edges-higher-tighter-supply-concerns-2025-03-26/

2025-03-25 23:53

March 26 (Reuters) - The Black Sea maritime security deal aims to bring Moscow back to predictable grain and fertiliser markets that would allow for profit and ensure global food security, Russian Foreign Minister Sergei Lavrov said in remarks published late on Tuesday. The United States reached separate deals on Tuesday with Ukraine and Russia to cease fighting in the Black Sea and pause attacks against energy targets, with Washington agreeing to push to lift some sanctions against Moscow. Sign up here. "We want the grain and fertilizer market to be predictable, so that no one tries to 'ward us off' from it," Lavrov told the Russian state Channel One television. "Not only because we want ... to make a legitimate profit in fair competition, but also because we are concerned about the food security situation in Africa and other countries of the Global South." If implemented, the deal could be the first significant step toward U.S. President Donald Trump's goal to achieve a more encompassing ceasefire in the war in Ukraine that Russia started with its full-scale invasion three years ago. Lavrov, a veteran Russian diplomat at the helm of the foreign ministry since 2004, said the optimism of U.S. special envoy Steve Witkoff who said that truce could come soon does not take under consideration the European allies of Kyiv. "He (Witkoff) significantly overestimates the elites of European countries, who want to 'hang like a stone around the neck' of (Ukraine's President Volodymyr) Zelenskiy, so as not to allow him to 'give in'," Lavrov said. "Zelenskiy himself does not want to 'give in'." Lavrov praised Trump and his officials for wanting to repair mutual relations and said Moscow is in consensus with the U.S. on not allowing disagreements between the two largest nuclear powers to escalate into a confrontation. But he said Moscow will remain vigilant in its dealings with the U.S. "'Trust, but verify' - this is the great commandment of (Former U.S. President Ronald) Reagan," Lavrov said. "We will not forget it." https://www.reuters.com/world/europe/black-sea-deal-aimed-moscow-making-profit-ensuring-food-safety-russias-lavrov-2025-03-25/

2025-03-25 23:00

CHICAGO, March 25 (Reuters) - Archer-Daniels-Midland Co (ADM.N) , opens new tab CEO Juan Luciano earned $21.6 million in 2024, down from $24.4 million the prior year, a securities filing on Tuesday showed, as the U.S. grains trader faced accounting problems and cost pressures that triggered layoffs and sent its shares plummeting. The Chicago-based company was forced to revise six years of financial statements early last year and further restate some earnings later in the year after an internal investigation into its financial reports. Sign up here. The accounting woes also cost former Chief Financial Officer Vikram Luthar his job and triggered two federal investigations. Luciano's 2024 compensation included a slight increase in base salary to $1.493 million and company stock awards valued at $17.7 million, according to ADM's annual proxy statement filed with the U.S. Securities and Exchange Commission. The top executive's annual incentive plan award fell to $1.2 million, down from $3.6 million the prior year and about 40% of his 2024 target of nearly $3 million, as company earnings and returns on investment fell below preset goals. ADM in February posted its lowest fourth-quarter adjusted profit in six years and warned of a tough 2025 due to slumping margins and U.S. biofuel policy uncertainty. The company also began layoffs in a broader cost-cutting push to save $500 million to $700 million over the next three to five years. Reuters exclusively reported that ADM began a fresh wave of job cuts this week targeting its agricultural services and oilseeds division, the company's largest unit. ADM shares are down 32% since news of the accounting issues broke in January 2024, sending its market cap plunging to around $22 billion from nearly $37 billion previously, according to LSEG data. https://www.reuters.com/markets/commodities/adm-ceo-pay-dips-2024-accounting-issues-job-cuts-hang-over-company-2025-03-25/

2025-03-25 22:54

KB Home falls after downbeat annual revenue forecast Consumer confidence stands at 92.9 in March CrowdStrike gains after brokerage ups rating S&P 500 +0.16%, Nasdaq +0.46%, Dow +0.01% March 25 (Reuters) - Wall Street stocks ended higher on Tuesday, with Apple rising and Nvidia dipping as investors assessed consumer sentiment data and bet on a more flexible trade policy stance from the Trump administration next week. U.S. President Donald Trump said on Monday that automobile tariffs were coming soon, while suggesting that not all proposed tariffs would be enforced in an April 2 announcement on which Wall Street is focused. Sign up here. "I don't expect that we'll get the clarity that the market is hoping for, but investors are desperate for any sort of clarity on this front, and to the extent they'll get some of it, it's a huge day," said Ross Mayfield, an investment strategist at Baird. Weighed by worries that Trump's tariffs would fuel inflation and hurt economic growth, the S&P 500 is down about 2% so far in 2025, and it is on track for its first quarterly loss since June 2023. Ratings agency Moody's said on Tuesday that the United States' fiscal strength is on track for a continued multiyear decline as budget deficits widen and debt becomes less affordable. Another report revealed , opens new tab a dip in consumer confidence, with the index falling to 92.9 in March - its lowest since February 2021. Apple (AAPL.O) , opens new tab rose 1.4%, helping keep the Nasdaq in positive territory, while Nvidia (NVDA.O) , opens new tab slid 0.6%. Tesla shares rose 3.45%, adding to a 12% rally the previous day. The company's market share in Europe continued to shrink in February as sales of the all-electric car maker dropped for a second month, even as EV registrations overall on the continent grew. KB Home (KBH.N) , opens new tab fell over 6% after the homebuilder cut its full-year 2025 revenue forecast. The S&P 500 climbed 0.16% to end the session at 5,776.65 points. The Nasdaq gained 0.46% to 18,271.86 points, while the Dow Jones Industrial Average rose 0.01% to 42,587.50 points. Of the 11 S&P 500 sector indexes, seven rose, led by communication services (.SPLRCL) , opens new tab, up 1.43%, followed by a 0.98% gain in consumer discretionary (.SPLRCD) , opens new tab. Fed Governor Adriana Kugler said the central bank's interest rate policy remains restrictive, but progress on bringing inflation back to the central bank's 2% target has slowed. New York Fed President John Williams said firms and households were "experiencing heightened uncertainty" about what lies ahead for the economy. Among a cascade of economic indicators scheduled this week, focus will be on the personal consumption expenditures price index - the Fed's preferred inflation gauge - due on Friday. CrowdStrike (CRWD.O) , opens new tab gained 3.3% after brokerage BTIG raised its rating on the cybersecurity company to "buy" from "neutral." Declining stocks outnumbered rising ones within the S&P 500 (.AD.SPX) , opens new tab by a 1.3-to-one ratio. The S&P 500 posted 11 new highs and 4 new lows; the Nasdaq recorded 42 new highs and 160 new lows. Volume on U.S. exchanges was relatively light, with 13.0 billion shares traded, compared with an average of 16.4 billion shares over the previous 20 sessions. https://www.reuters.com/markets/us/wall-st-futures-slip-trump-led-rally-loses-steam-2025-03-25/