2025-03-17 06:42

ABOARD AIR FORCE ONE, March 17 (Reuters) - U.S. President Donald Trump said he has no intention of creating exemptions on steel and aluminum tariffs and said reciprocal and sectoral tariffs will be imposed on April 2. Last month, Trump raised tariffs on imports of steel and aluminum to a flat 25%, without exemptions or exceptions, in a move that was designed to help U.S. industry while contributing to an escalating trade war. Sign up here. Speaking to reporters on Air Force One, Trump said reciprocal duties on U.S. trading partners would come alongside auto duties. "In certain cases, both," Trump said when asked if he would be imposing sectoral and reciprocal tariffs on April 2. "They charge us, and we charge them. Then, in addition to that, on autos, on steel, on aluminum, we're going to have some additional," he said. Trump has said previously that he would impose reciprocal tariffs on U.S. friends and foes alike at the beginning of April. https://www.reuters.com/world/us/trump-says-no-exemptions-steel-aluminum-tariffs-2025-03-17/

2025-03-17 06:37

Concerns rise about economic impact of Trump's tariffs US retail sales rebound moderately in February Euro near 5-month high after Germany agrees fiscal deal Yuan firm as Beijing takes steps to bolster consumption NEW YORK, March 17 (Reuters) - The dollar hovered near a five-month low against the euro on Monday as worries about the economic fallout from U.S. President Donald Trump's protectionist trade policies kept investors cautious on the dollar. The euro , which has advanced in recent sessions, lifted by hopes of a German fiscal deal, was 0.4% higher at $1.092325. The common currency was just shy of $1.0947 it hit last week, its highest since October 11. Sign up here. Currency markets have undergone a shift in recent months as traders re-evaluate their initial expectations that Trump's economic policies would both support the dollar and cause other currencies to weaken. The reassessment has prompted the dollar to retreat 6% against the euro since mid-January. "I think the market just called it wrong," said Kyle Chapman, FX markets analyst at Ballinger Group, in London. "They were leading on the tax cuts and deregulation to boost growth, while at the same time creating a sort of risk-averse mood," he said. "Actually the focus has been much more on the protectionism, sending people's heads spinning," Chapman said. Since taking office in January, Trump's declarations on imposing and then suspending tariffs against a wide range of trading partners have unnerved markets. While ruling out the possibility of a financial crisis, Treasury Secretary Scott Bessent, in an interview aired on Sunday, said there were "no guarantees" there will not be a recession in the United States. The dollar found little support from a Commerce Department report on Monday that showed retail sales rebounded moderately in February, after a revised 1.2% decline in January. The week is packed with central bank meetings, including the Federal Reserve, the Bank of Japan and the Bank of England, all of which are widely expected to hold fire as policymakers try to see through the current economic uncertainty. The euro has strengthened after German parties on Friday agreed on a fiscal deal that could boost defence spending and revive growth in Europe's largest economy. Analysts at Societe Generale said on Monday that they had changed their currency forecasts "to reflect Germany's planned fiscal changes, the U.S. economy's self-inflicted (relative) fragility, and Japan's escape from deflation." They see the euro at $1.13 by year-end, up nearly 4% from current levels, and the yen at 139 per dollar, up about 7%. On Monday, the dollar was 0.4% higher against the yen at 149.160 yen, not far from the five-month low of 146.52 yen touched last week. The Bank of Japan is tipped to keep interest rates steady when it meets on Wednesday, but the conditions for another rate hike have been falling into place, with big Japanese firms offering bumper pay hikes in wage talks with unions for a third-straight year. Speaking in parliament last week, BOJ Governor Kazuo Ueda said he expects wage rises to spur a pick-up in consumption, although he was "very worried" about uncertainties surrounding overseas economic developments. Meanwhile, the Chinese yuan edged back towards its strongest level in four months in offshore trading, changing hands at 7.2332 per dollar . Last Wednesday, it strengthened to 7.2158 per dollar for the first time since November 13. On Sunday, China's State Council announced a "special action plan" to boost domestic consumption featuring measures including increasing residents' income and establishing a childcare subsidy scheme. During the session, a string of China data showed the economy started the year on a firmer footing with retail sales picking up speed in the first two months. In cryptocurrencies, bitcoin, the world's largest cryptocurrency by market cap, was up 1.6% on the day at $84,552. https://www.reuters.com/markets/currencies/dollar-back-foot-economic-worries-sap-confidence-yuan-firms-2025-03-17/

2025-03-17 06:22

March 17 (Reuters) - ExxonMobil's (XOM.N) , opens new tab Australian unit said on Monday that its Gippsland Basin joint venture with Woodside Energy (WDS.AX) , opens new tab has approved its final investment decision to develop the Turrum Phase 3 project, targeting underdeveloped gas resources. The approval is for the A$350 million ($221.31 million) project, which aims to drill five new wells in the Turrum and North Turrum gas fields. Sign up here. Earlier this year, Australia's competition regulator flagged that the east coast could face gas shortage supply from 2027, potentially leading to gas imports. The shortfall is expected due to structural decline and uncertainty surrounding future investments. "While depletion of the Gippsland Basin is inevitable, projects such as Turrum will ensure Bass Strait continues to produce gas for the domestic market past 2030," said Simon Younger, Chair of ExxonMobil Australia in an emailed response to Reuters. The Gippsland Basin joint venture is a 50-50 joint venture between Esso Australia Resources and Woodside Energy (Bass Strait), and operated by Esso Australia. "The Turrum Phase 3 project, and the recently approved Kipper 1B project, will unlock additional gas that is needed to avoid future shortfalls," said Liz Westcott, Woodside's executive vice president and chief operating officer for its Australian operations in a separate statement. "Every molecule of gas Woodside supplies from the Bass Strait fields is sold into the Australian domestic market for local manufacturers, power generators and homes." ($1 = 1.5815 Australian dollars) https://www.reuters.com/business/energy/exxonmobil-australia-woodside-approve-final-investment-decision-221-million-gas-2025-03-17/

2025-03-17 06:04

LAUNCESTON, Australia, March 17 (Reuters) - China dipped slightly into crude stockpiles in the first two months of the year as refiners processed more oil and imports remained weak. It was the first time in 18 months that refinery throughput exceeded the amount of crude available from imports and domestic production. Sign up here. Refiners processed about 30,000 barrels per day (bpd) more in the January-February period than the total of crude available, according to calculations based on official data. China does not disclose the volumes of crude flowing into or out of strategic and commercial stockpiles, but an estimate can be made by deducting the amount of oil processed from the total of crude available from imports and domestic output. Refiners processed the equivalent of 14.74 million bpd in the first two months of the year, up 2.1% from the same period a year earlier, according to data released on Monday by the National Bureau of Statistics. China combines import data for January and February to smooth out the impact of the week-long Lunar New Year holiday, the timing for which changes each year. China, the world's biggest crude importer, saw arrivals of 10.37 million bpd in the first two months of the year, and domestic production of 4.34 million bpd. The combined total of 14.71 million bpd was 30,000 bpd below the volume processed, the first time since September 2023 that processing exceeded available crude. Given that it's a relatively rare occurrence for refiners to process more crude than the total of imports and domestic output, it's worth asking why this was the case for the first two months of 2025. The main reason is that crude imports were weak in the first two months, dropping 5% from the same period in 2024. There were likely two main factors behind the decline in imports, the first being that refiners cut back on cargoes from Russia after outgoing U.S. President Joe Biden imposed new sanctions in mid-January on tankers carrying Russian crude. But it's also worth noting that refiners didn't appear to make much effort to replace Russian oil with cargoes from other suppliers, and the most likely reason for that was the strength of global crude prices in January and February. Benchmark Brent futures reached their highest point so far this year of $82.63 a barrel on Jan. 15, having risen steadily from levels around $70 at the start of December. PRICE PULLBACK China's refiners have a track record of paring imports when they believe oil prices have risen too high, or too quickly. The last time they dipped into inventories in September 2023 came after crude prices had rallied strongly from around $72 a barrel in June of that year to reach a 10-month high of $96.26 on Sept. 29, 2023. Crude prices have been retreating since their high in January this year, with Brent trading around $71.00 a barrel in Asian trade on Monday. The decline in prices may be enough to encourage refiners to buy more crude, but this will likely only show up in imports from April onwards given the lag between when oil is ordered and physically delivered. On the refinery processing side of the equation, it's worth noting that while throughput rose 2.1% in the first two months of the year from the same period in 2024, it was still well short of what used to be normal levels. China's refinery processing fell in 2024 for the first year in more than two decades, dropping to 14.13 million bpd. The recovery to 14.74 million bpd in the January-February period is modest, especially when viewed against the period from August 2023 through to March 2024, when processing volumes regularly exceeded 15 million bpd. Refinery processing was also likely boosted by increased gasoline demand for the Lunar New Year holidays, and by the start up of a 200,000 bpd unit at the new Shandong Yulong Petrochemical refinery. The views expressed here are those of the author, a columnist for Reuters. https://www.reuters.com/markets/commodities/china-made-rare-draw-crude-oil-inventories-amid-weak-imports-russell-2025-03-17/

2025-03-17 05:44

Fed likely to hold rates this week No guarantees that there will not be US recession - Bessent Trump will speak with Putin about ceasefire proposal March 17 (Reuters) - Gold prices firmed on Monday, sitting just below the $3,000-mark that was broken last week, with the focus on trade tariffs and the U.S. Federal Reserve's policy meeting. Spot gold was up 0.5% at $2,998.14 an ounce by 01:30 p.m. ET (1730 GMT), having hit a record high of $3,004.86 on Friday. Sign up here. U.S. gold futures settled 0.2% higher at $3,006.10. The Federal Reserve will give its new economic projections this week, which will provide the most tangible evidence yet of how U.S. central bankers view the likely impact of President Donald Trump's policies that have clouded a previously solid economic outlook. There are "no guarantees" there will not be a recession in the United States, although there could be an adjustment, Treasury Secretary Scott Bessent said on Sunday. "I expect some consolidation in gold prices...Right now, the market is in a 'wait-and-see' mode ahead of the Fed’s decision," said David Meger, director of metals trading at High Ridge Futures. Markets expect the U.S. central bank to hold interest rates on Wednesday, with the next cut in June. FEDWATCH Zero-yield bullion is considered a hedge against uncertainty and tends to thrive in a low-interest environment. Data showed U.S. retail sales rebounded by less than expected in February, signalling moderate economic growth despite import tariffs and federal worker layoffs dampening sentiment. "Should economic data continue to soften and the global tariff war escalate, gold will continue to benefit," analysts at Heraeus Metals said in a note. Trump, meanwhile, said he plans to speak to Russian President Vladimir Putin on Tuesday and discuss ending the war in Ukraine. Spot silver was unchanged at $33.78 an ounce and palladium was up 0.2% at $967.01, while platinum added 0.9% to $1,002. https://www.reuters.com/markets/commodities/gold-edges-higher-geopolitical-economic-concerns-linger-2025-03-17/

2025-03-17 05:32

A look at the day ahead in European and global markets from Rae Wee Market movement on Monday continued the narrative of investors falling out of love with U.S. stocks and flocking to European and Chinese peers instead. Sign up here. Wall Street futures sullied a wall of gain early in the day, failing to sustain last week's dip-buying rally that boosted all three major U.S. stock indexes. Monday's dismal reversal of fortunes for U.S. stocks could stem from U.S. Treasury Secretary Scott Bessent commenting on Sunday about there being "no guarantees" that the world's largest economy will avoid recession, just a week after U.S. President Donald Trump declined to rule one out. Investors have sought refuge from the tumultuous U.S. stock market by pouring into a type of exchange-traded fund that offers a trade-off - a cap on potential gain in return for a cushion against possible loss. But across the Atlantic, a different story is playing out. Investors optimistic about Germany's fiscal reset plan have poured money into European stocks, sending the pan-continental STOXX 600 (.STOXX) , opens new tab up more than 7% for the year so far. Germany's DAX (.GDAXI) , opens new tab has similarly gained more than 15% to date, compared with the S&P 500 index's (.SPX) , opens new tab 4% fall. European stock futures again pointed to a strong opening on Monday, with EUROSTOXX 50 futures up 0.17% and DAX futures gaining 0.35%. Germany's parliamentary budget committee on Sunday approved plans for the massive increase in state borrowing to bolster defence and revive economic growth. The bill, which includes a 500 billion euro ($540 billion) fund for infrastructure and changes to borrowing rules, will require a two-thirds majority in a parliamentary vote scheduled for Tuesday. Similarly for China, once beaten-down stocks have emerged as unlikely beneficiaries of Trump's whipsawing tariff policies. Coupled with a major rally in tech shares following Chinese AI startup DeepSeek's splashy debut of its R1 reasoning model, Hong Kong's Hang Seng Index - where many major Chinese companies are listed - is up nearly 20% so far this year. The situation in China is also improving. Official data on Monday showed retail sales growth quickened in January-February, in a welcome sign for policymakers even as joblessness rose and factory output eased. A day earlier, the State Council unveiled what it called a "special action plan" to boost domestic consumption, featuring measures including increasing residents' income and establishing a childcare subsidy scheme. That in turn came days after the financial regulator promised to relax consumer credit quotas and loan terms as it offers long-term backing to make available large sums. Investors will be bracing for a busy week filled with central bank policy decisions including from the Federal Reserve. The Fed is widely expected to keep interest rates on hold, though traders will be looking for hints about further cuts that could restore calm to markets. And in geopolitics, Trump said he planned to speak to Russian President Vladimir Putin on Tuesday and discuss ending the war in Ukraine. Key developments that could influence markets on Monday: https://www.reuters.com/markets/europe/global-markets-view-europe-2025-03-17/