2025-11-14 06:03

India discount jumps to $43/oz, up from $14 last week Premiums of $1.5-$3.5/oz charged in Singapore Nov 14 (Reuters) - Physical gold demand across major Asian markets was subdued this week as elevated prices curtailed buying activity, with discounts in India reaching their highest level in five months. Indian dealers' discounts were up to $43 per ounce over official domestic prices, inclusive of 6% import and 3% sales levies, up from the last week's discount of up to $14. Sign up here. "Footfall at jewellery stores has dropped a lot after Diwali, and sales are also down sharply because prices are so high," said a Chennai-based jeweller. Domestic gold prices were around 126,900 rupees ($1,443.77) per 10 grams on Friday, up 6.5% from last week's low 119,150 rupees. Benchmark spot gold prices were on track for a weekly gain, up 5% this week. Meanwhile, the India Bullion and Jewellers Association (IBJA) has asked the government to close a policy loophole that allowed import-duty-free platinum-alloy jewellery that contained about 90% gold. After extracting gold from the jewellery, a few dealers sell it at a discount, distorting trade as banks are required to pay a 6% duty on imported gold, said Harshad Ajmera of wholesaler JJ Gold House in Kolkata. In top consumer China, bullion traded anywhere from a discount of $8 to a $4 premium an ounce over the global benchmark spot price . "Asia's gold market has entered a 'pause mode' led by China," said Bernard Sin, regional director of Greater China at MKS PAMP. "Sentiment remains cautious: with gold prices at record highs and higher volatility, many traditional retail buyers are staying on the sidelines, waiting for a clearer correction." In Singapore , gold traded between a $1.50 and $3.50 premium this week. Gold in Hong Kong was sold at premiums ranging between $0.50 and $2.50. In Japan, bullion was sold at par to a premium of $0.50 per ounce over spot prices. ($1 = 87.8950 Indian rupees) https://www.reuters.com/world/china/asia-gold-price-rise-dulls-activity-top-hubs-india-discounts-hit-5-month-high-2025-11-14/

2025-11-14 06:02

AMSTERDAM, Nov 14 (Reuters) - A 3.4 magnitude earthquake hit the Groningen region in the north of the Netherlands early on Friday, Dutch meteorology institute KNMI said. No injuries were reported. Sign up here. The quake was the most severe in years to hit Groningen, where decades of gas production have led to dozens of minor tremors every year. Production at what was once one of Europe's major natural gas fields was permanently halted two years ago to limit the seismic activity that has damaged thousands of buildings over the years. The end of production is expected to limit the risk of severe quakes in the future, but it will probably take decades for seismic activity to completely subside, Dutch mining authority SodM said on Friday. https://www.reuters.com/business/environment/dutch-groningen-region-hit-by-34-magnitude-earthquake-2025-11-14/

2025-11-14 05:56

BERLIN, Nov 13 (Reuters) - Germany's lower house of parliament passed two bills late on Thursday aimed at lowering electricity prices, which are among the highest in Europe and are a burden on industry and the wider economy. The costs are inflated by transmission fees, levies and taxes. Sign up here. ($1 = 0.8575 euros) https://www.reuters.com/sustainability/boards-policy-regulation/german-lawmakers-back-measures-lower-electricity-costs-2025-11-14/

2025-11-14 05:32

SINGAPORE, Nov 14 (Reuters) - A look at the day ahead in European and global markets from Gregor Stuart Hunter It has been a wrenching 24 hours for markets as traders reined in expectations that the U.S. Federal Reserve will ease policy at its December meeting, with a cut now viewed as a coin toss. Stocks, Treasury bonds and the U.S. dollar all fell. Sign up here. Adding to the gloom, data released on Friday showed China's factory output and retail sales grew at their weakest pace in over a year in October. Comments from Fed officials have increased the prospects of a hold at the central bank's final meeting of the year. Alberto Musalem, president of the St. Louis Fed, said there was limited room to ease further without becoming overly accommodative, while Cleveland Fed President Beth Hammack said the interest rate policy should remain restrictive in order to put downward pressure on inflation. Minneapolis Fed President Neel Kashkari told Bloomberg that he opposed a rate cut last month and is on the fence about December as well. Fed funds futures are now pricing an implied 50.7% probability of a quarter-point cut at the central bank's next meeting on December 10, according to the CME Group's FedWatch tool, down from a 63% chance on Thursday. The yield on the benchmark 10-year Treasury note rose to 4.1211% compared with its U.S. close of 4.111% on Thursday, while the two-year yield , which rises with traders' expectations of a higher Fed funds rate, reached 3.593%, compared with a U.S. close of 3.589%. The greenback found little reprieve from higher bond yields, however, with the U.S. dollar index sliding 0.1% to 99.13, nearing its lowest point of the month. Asian markets fell after Wall Street stocks snapped a four-day winning streak on Thursday, pushing MSCI's broadest index of Asia-Pacific shares excluding Japan (.MIAPJ0000PUS) , opens new tab down 1.5% on Friday. Dip-buying during Asian trading hours had petered out by the afternoon, with S&P 500 e-mini futures paring gains to last trade down 0.1%. In early European trading, Euro Stoxx 50 futures were down 0.4%, German DAX futures rose 0.1% and FTSE futures slid 0.5%. Sterling was last down 0.4% at $1.3145 after the Financial Times, citing officials briefed on the decision, reported that British Prime Minister Keir Starmer and Chancellor of the Exchequer Rachel Reeves have abandoned plans to raise income tax rates, changing course just weeks before the November 26 release of the government's budget. Oil prices rose after a Ukrainian drone attack damaged a Russian oil depot, sending Brent crude prices up 1.5% to $63.96. Key developments that could influence markets on Friday: Earnings: Allianz, Swiss Re, Rolls-Royce Holdings Economic data: France: CPI for October Eurozone: Employment flash for Q3, trade balance for September, GDP flash estimate for Q3 Debt auctions: U.K.: 1-month, 3-month and 6-month government debt https://www.reuters.com/world/china/global-markets-view-europe-2025-11-14/

2025-11-14 05:09

MUMBAI, Nov 14 (Reuters) - The Indian rupee weakened on Friday and for the week as global risk-off sentiment added to pressure from unfavourably skewed hedging and investment flows, keeping the currency pinned near its record low. The Reserve Bank of India likely intervened across the spot, NDF and futures markets to stabilise the currency, traders said. The rupee closed at 88.7425 per U.S. dollar, down about 0.1% on both the day and week. Sign up here. Global markets were under strain after hawkish Federal Reserve commentary dampened expectations of a U.S. rate cut next month. India’s benchmark equity indexes, the BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab though, bucked the trend with a 0.2% rise compared to the near 2% drop in MSCI’s gauge of Asian shares outside Japan (.MIAPJ0000PUS) , opens new tab. The rupee hovered in touching distance of its all time low at 88.80 through the day's session but averted steeper losses on account of the central bank's market intervention. The currency has held on the stronger side of that level since Sept. 30, supported by stepped-up RBI defence that has also kept volatility expectations contained. Asian currencies were trading mixed and the dollar index was steady at 99.2. While the U.S. government shutdown has concluded, investors continue to fret over gaps in economic data that could delay or even derail future policy easing. Money markets are currently pricing in a near 49% chance of a Fed rate cut next month, down from above 60% earlier in the week. "The bar for a December cut has risen when hearing Fed officials. While the move in the dollar fits our bearish view, it feels a bit premature and at risk of rapid reversal should the initial batch of US data prove not as bad as seemingly priced in," ING said in a note. https://www.reuters.com/world/india/risk-off-poised-drag-rupee-near-record-low-challenging-rbis-defence-2025-11-14/

2025-11-14 04:28

Reflationist aides of Takaichi see weak yen as positive Finance minister's verbal warnings fail to halt yen slide Premier signals displeasure over near-term BOJ rate hike Hurdle for yen-buying intervention seen high TOKYO, Nov 14 (Reuters) - As Japanese authorities once again battle a slide in the yen, their efforts this time are struggling for traction, undermined by new prime minister Sanae Takaichi's promotion of advocates of big fiscal and monetary stimulus to key posts. While Tokyo officials this week warned against sharp downward moves in the currency, maintaining the jawboning of previous administrations, their voices are increasingly competing with calls by new policy advisers preaching the benefits of a weak yen. Sign up here. A proponent of expansionary fiscal and monetary policy, Takaichi filled seats in key government panels with advocates of big spending backed by low interest rates - policies that work to depreciate the yen's value. For one, Takuji Aida, an economist who joined a panel on the government's growth strategy, stressed the benefits of a weak yen such as easing the blow to manufacturers from U.S. tariffs. The reflationists' sanguine view on the weak yen contrasts with the concerns of previous administrations, who primarily focused on cost of living pressures caused by the currency's impact on imported inflation. "The Takaichi administration hasn't escalated its warning, which suggests it is tolerating a weak yen," said Masafumi Yamamoto, chief currency strategist at Mizuho Securities. "Given the administration doesn't seem to prioritise combatting a weak yen, it would take a slide below 155 per dollar for it to escalate verbal warnings and a fall below 160 to contemplate direct intervention in the market," he said. To be sure, Finance Minister Satsuki Katayama warned on Wednesday that authorities were vigilant to "one-sided, sharp moves" in the exchange-rate market, adding the negative aspects of a weak yen have become more pronounced than the positives. But the remarks failed to prop up the yen as they were short of more direct threats of currency intervention, such as that authorities were ready to take "decisive action." Underscoring a lack of consensus within the administration, economic revitalisation minister, Minoru Kiuchi, said last month the weak yen had benefits to growth. On Tuesday, he said the boost to import costs from a weak yen was fading. Such views have also helped fuel market expectations the Bank of Japan will be forced to go slow in raising interest rates, pushing the yen to a record low against the euro and a nine-month trough versus the U.S. dollar. The dollar has risen about 5% against the yen since Takaichi won the ruling party's leadership race on October 4. It stood around 154.50 yen on Friday, after breaking a key milestone of 155 earlier this week. INTERVENTION HURDLE HIGH Japan last intervened in the currency market in July 2024 when the yen fell to a 38-year low of around 161.96 to the dollar. The BOJ also raised interest rates to 0.25% that month, causing the yen to strengthen to around 150 per dollar. Such concerted action highlighted the concern then-premier Fumio Kishida had about a weak yen. By contrast, Takaichi and her reflationist aides are fans of "Abenomics," a mix of big spending and bold monetary easing deployed in 2013. The policies helped reverse sharp yen rises blamed for prolonging deflation and economic stagnation. Now, a weak yen has become a pain point for an economy that relies heavily on fuel and food imports. Yen declines have kept inflation above the BOJ's 2% target for well over three years, causing grumblings from households hit by rising living costs. Mindful of broadening inflationary pressures, BOJ Governor Kazuo Ueda signaled the chance of a hike as soon as next month. But Takaichi and her finance minister both made clear their displeasure over a near-term rate hike, saying Japan has yet to see inflation durably achieve the BOJ's target. Almost a year since its last rate hike in January, investors have taken comfort in selling yen on prospects the BOJ is unlikely to hike steadily at a set pace. "There's a higher chance than initially thought that Takaichi's administration would favour reflationary policies," said Ryutaro Kono, chief Japan economist at BNP Paribas. "Given the administration's policy stance as suggested by the recent personnel appointments, it's hard to project the BOJ accelerating its pace of rate hikes," said Kono, who now expects the bank to hike twice next year instead of three times. If BOJ rate hikes were put on hold, the only remaining tool to counter yen falls would be currency intervention. But getting consent from Washington may be tough as U.S. Treasury Secretary Scott Bessent has repeatedly signaled that rate hikes are the best way to prop up the yen. Former BOJ official Toru Sasaki expects Japan to hold off intervening unless the yen falls below 165 to the dollar. "Conducting yen-buying intervention at a time Japan's real interest rates remain deeply negative would be wasting foreign reserves." https://www.reuters.com/world/asia-pacific/japans-fight-with-yen-bears-dulled-by-takaichis-doves-2025-11-14/