2026-01-08 06:13

MUMBAI, Jan 8 (Reuters) - The Indian rupee ended lower on Thursday after a choppy session as fresh, surprise intervention by the Reserve Bank of India was outweighed by tariff worries and equity outflows. The currency , which opened at 89.95 rebounded to 89.75 after RBI intervened for a second straight day, bankers said. It finally ended at 90.0175 after closing at 89.88 on Wednesday. Sign up here. "Market moves have again started to be dominated by one large player, and the currency changes direction based on the presence or absence of RBI," a trader with a foreign bank said. Earlier in the day, bankers had said they doubted the sustainability of the recovery in the rupee to 89.75 from 90.30, hit on Tuesday and were advising importer clients to hedge on the rupee's strength. "The combined effect of 500% tariffs proposed by U.S., fall in equity markets, RBI short forward positions kept the pressure on the rupee consistently even though RBI came intermittently to sell dollars," said Anil Bhansali, head of treasury at Finrex Treasury Advisors. "The rupee premiums again have started to move up as importers bought and paid for forward positions of their import holdings." Equity markets tumbled for the fourth straight day and, with the Nifty 50 Index dropping 1% amid foreign outflows due to intensifying U.S. tariff worries and selloff in export-oriented firms. U.S. President Donald Trump will allow a bipartisan sanctions bill targeting countries doing business with Russia to move forward in Congress and it could be put to a vote as early as next week, Republican Senator Lindsey Graham said on Wednesday. Immediate attention will be on the closely watched U.S. non-farm payrolls report, due after Indian market hours on Friday. The data is expected to offer fresh clues on the labour market and the Federal Reserve's policy path for 2026. https://www.reuters.com/world/india/indian-rupees-rbi-led-push-past-90-risks-reversal-dollar-strength-hedging-2026-01-08/

2026-01-08 05:55

Oil prices rise as traders watch Venezuela developments Eyes on US nonfarm payrolls; bets of two more Fed cuts remain S&P 500 ends near flat NEW YORK, Jan 8 (Reuters) - Major stock indexes were mixed and Treasury yields rose on Thursday ahead of Friday's key U.S. jobs report, while defense company shares gained amid U.S. President Donald Trump's plans for a $1.5 trillion military budget. An aerospace and defense index (.SPLRCAERO) , opens new tab rose to an all-time high, with European defense shares also hitting a new high. Oil prices also climbed as investors monitored developments in Venezuela. Sign up here. Over the weekend, U.S. military forces captured Venezuelan President Nicolas Maduro. The White House said on Tuesday that Trump was also discussing options for acquiring Greenland. Data showed the number of Americans filing new applications for unemployment benefits rose moderately last week, suggesting that layoffs were relatively low at the end of 2025, though demand for labor remained sluggish. Traders are pricing in at least two rate cuts from the Federal Reserve this year, although a divided central bank indicated in December there would be only one cut in 2026. The Fed is expected to keep rates steady at its meeting this month. Friday's U.S. employment report for December will be key. The S&P 500 ended the day flat. Technology (.SPLRCT) , opens new tab was down the most among S&P 500 sectors, while energy (.SPNY) , opens new tab was up the most. A global stock index was slightly lower. "There are lots of potential potholes out there, but so far we seem to be skipping our way around them," said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey. "We're continuing to see rotation back and forth between sectors, but at the base of the market, investors remain constructively positive." The Dow Jones Industrial Average (.DJI) , opens new tab rose 270.03 points, or 0.55%, to 49,266.11, the S&P 500 (.SPX) , opens new tab rose 0.53 points, or 0.01%, to 6,921.46 and the Nasdaq Composite (.IXIC) , opens new tab fell 104.26 points, or 0.44%, to 23,480.02. Shares of Nvidia (NVDA.O) , opens new tab slid 2.2%, Broadcom (AVGO.O) , opens new tab declined 3.2% and Microsoft (MSFT.O) , opens new tab dipped 1.1%. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab fell 2.22 points, or 0.22%, to 1,029.26. The pan-European STOXX 600 (.STOXX) , opens new tab index fell 0.19%. Oil prices climbed after two straight days of declines, settling at a two-week high. Brent futures rose $2.03, or 3.4%, to settle at $61.99 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $1.77, or 3.2%, to settle at $57.76. Copper and nickel prices fell as the dollar strengthened and as investors locked in profits. YIELDS, DOLLAR UP The yield on benchmark U.S. 10-year notes rose 4.5 basis points to 4.183%. The yield curve between two- and 10-year notes steepened by around 2 basis points to 69 basis points. Venezuela's default-stricken bonds were finally cooling off following their near 40% surge after the weekend's events fuelled investor hopes for a massively complex debt restructuring. The dollar gained against the euro and Swiss franc, with investors awaiting Friday's labor report. The dollar index , which measures the U.S. currency against six rivals, was up 0.2% at 98.922 after hitting its highest since December 10. https://www.reuters.com/world/china/global-markets-global-markets-2026-01-08/

2026-01-08 05:41

A look at the day ahead in European and global markets from Thursday Donald Trump headlines have stacked up over the past 24 hours. Sign up here. The U.S. president vowed to block defense contractors from paying dividends or buying back shares until they speed up weapons production. He backed a bipartisan sanctions bill targeting countries doing business with Russia and withdrew the United States from dozens of international and U.N. entities. He also wants to control Venezuela's oil sales, with his vice president saying that's how the U.S. will wield "incredible pressure" on the country. Oh, and not to forget Trump's plans to take over Greenland. Yet, markets couldn't seem to care less. Or maybe there is just too much noise for investors to take in. While stocks were mixed in the Asian session on Thursday, analysts said a modest pullback was only natural after a stellar start to the year, and not a growing sign of alarm in the market. Samsung Electronics' (005930.KS) , opens new tab better-than-expected forecast for a record fourth-quarter operating profit could also give investors another reason to stay bullish on all things AI. Most of the market reaction to the latest developments in Venezuela has been concentrated in commodities, while other asset classes have largely remained driven by economic data, brushing off deepening geopolitical tensions globally. Oil prices recovered after two days of declines, as a larger-than-expected draw in U.S. crude inventories provided some impetus for investors to buy futures. Sources told Reuters that Chevron (CVX.N) , opens new tab is in talks with the U.S. government to expand a key license to operate in Venezuela so it can increase crude exports to its own refineries and sell to other buyers. In Japan, shares of domestic chemical manufacturers fell on Thursday while those of their Chinese rivals jumped after China's commerce ministry said it is launching an anti-dumping probe into imports of chemicals used in chipmaking, in the latest sign of strained bilateral ties between the two nations. But at levels above 50,000, the Nikkei (.N225) , opens new tab remains not far from a record peak and is already up 2% for the year. For now, all eyes are on Friday's all-important U.S. nonfarm payrolls report, after Wednesday's slew of labour market data did little to alter rate expectations for the Federal Reserve. Fed policymakers have said that employment is their focal point when it comes to deciding what to do with interest rates, with investors currently pricing in two rate cuts this year. Friday's nonfarm payrolls report is expected to show a dip in the unemployment rate to 4.5% last month, from 4.6% in November, which would theoretically support the idea that rates do not need to fall dramatically. Key developments that could influence markets on Thursday: - German industrial orders (November) - UK house prices (December) - Euro zone producer prices (November) - U.S. weekly jobless claims https://www.reuters.com/world/china/global-markets-view-europe-2026-01-08/

2026-01-08 04:15

American and European oil companies prepare to visit Venezuela US seizes Venezuela-linked oil tankers amid sanctions escalation Russia-bound tanker attacked in Black Sea, no injuries reported Iraq nationalizes West Qurna 2 oilfield amid US sanctions on Lukoil NEW YORK, Jan 8 (Reuters) - Oil prices climbed over 3% on Thursday after two straight days of declines, settling at a two-week high as investors assessed developments in Venezuela and worried about supplies from Russia, Iraq and Iran. Brent futures rose $2.03, or 3.4%, to settle at $61.99 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $1.77, or 3.2%, to settle at $57.76. Sign up here. That was the highest close for Brent since December 24. Foreign embassies in Venezuela are beginning to arrange visits for next week that will include representatives for U.S. and European oil companies, two sources told Reuters, following Washington's announcement of a $2 billion oil deal and the supply of U.S. goods to the South American country. The U.S. seized two Venezuela-linked oil tankers in the Atlantic Ocean on Wednesday, with one sailing under Russia's flag, as part of U.S. President Donald Trump's aggressive push to dictate oil flows in the Americas and force Venezuela's socialist government to become an ally. After capturing Venezuelan President Nicolas Maduro in a military raid on Caracas on Saturday, the U.S. has been escalating its blockade of vessels that are under sanctions and traveling to and from the South American country, a member of the Organization of the Petroleum Exporting Countries. PRICES REVERT TO PRE-ATTACK LEVELS "The complex is rebounding, with the crude benchmarks back to about levels of last Friday's close prior to the U.S. removal of Maduro," analysts at energy advisory firm Ritterbusch and Associates said in a note. "The fact that this major development is having little impact on the energy complex is not surprising since the arrival of a meaningful amount of Venezuelan crude into the (U.S.) Gulf Coast region could be years away," Ritterbusch said. The U.S. Senate voted on Thursday to advance a resolution that would bar President Donald Trump from taking further military action against Venezuela without congressional authorization, even as Trump said U.S. oversight of the troubled nation could last years. U.S. Energy Secretary Chris Wright said there was room to balance roles for both the U.S. and China in Venezuela to allow for commerce, but that Washington would not allow Beijing to have major control over the South American country. In an interview on Fox Business Network, Wright also said he expected to see Chevron (CVX.N) , opens new tab quickly grow its activities in Venezuela, with other U.S. oil majors ConocoPhillips (COP.N) , opens new tab and Exxon Mobil (XOM.N) , opens new tab also looking to play a constructive role. The Trump administration has invited the bosses of commodity trading houses Vitol and Trafigura to the White House on Friday for talks on marketing Venezuelan oil, four sources familiar with the matter told Reuters. India's Reliance Industries (RELI.NS) , opens new tab, operator of the world's largest refining complex, said it will consider buying Venezuelan oil if permitted for sale to non-U.S. buyers. Venezuela produces about 1% of the world's oil supply. RUSSIA, IRAQ AND IRAN A Russia-bound oil tanker suffered a drone attack in the Black Sea that prompted it to request Turkish Coast Guard assistance and divert from its course, according to a notice by Lloyd's List Intelligence and a separate maritime security source on Thursday. Ukrainian President Volodymyr Zelenskiy said on Thursday the text of a bilateral security guarantee between Kyiv and Washington was "essentially ready" to be finalised with Trump. U.S. Republican Senator Lindsey Graham said on Wednesday that Trump will allow a bipartisan sanctions bill targeting countries doing business with Russia, the second-biggest oil producer in the world behind the U.S., to move forward in Congress. Iraq's cabinet has approved plans to nationalize operations at the West Qurna 2 oilfield, one of the world's largest, as the government looks to avert disruptions stemming from U.S. sanctions imposed on Russian stakeholder Lukoil (LKOH.MM) , opens new tab. Iran's President Masoud Pezeshkian warned domestic suppliers against hoarding or overpricing goods, state media reported on Thursday, as Tehran rolls out high-stakes subsidy reforms during nationwide protests against economic hardship. "Iran has a long history of protests, and there is no sign that the regime is on the verge of collapse. But depending on how the situation evolves, Iranian oil exports - equating to 2% of global supply - could be at risk," said Pavel Molchanov, investment strategy analyst at Raymond James. A nationwide internet blackout was reported in Iran on Thursday, internet monitoring group NetBlocks said, as protests over economic hardships continued around the country. Iraq and Iran are among the biggest oil producers in OPEC behind Saudi Arabia. https://www.reuters.com/business/energy/oil-prices-gain-us-inventory-draw-venezuela-focus-2026-01-08/

2026-01-08 02:15

BENGALURU, Jan 8 (Reuters) - The Indian rupee will trade in a narrow band against the dollar over the next few months, according to a Reuters poll of FX strategists who also said the Reserve Bank of India is likely to keep up with the same pace of currency interventions in the near term. While most Asian currencies made strong gains against the dollar in 2025, the rupee fell by the most in three years as foreign investors withdrew around $18 billion from Indian equities. Sign up here. Washington's punitive 50% tariffs on Indian goods are making some investors hesitate to invest in the world's fastest-growing major economy. The rupee, which hit an all-time low of 91.07 in December, avoided steeper losses due to the RBI's frequent dollar sales in the FX market. The partially convertible rupee was forecast to rise nearly 0.14% from current levels to 89.75 per dollar by end-March, according to the median view of 41 FX analysts polled between January 5-7. It is forecast to trade marginally weaker at 90.3 by end-June 2026 and then at 90.8 in a year. Pressure on the rupee remains intense, with the RBI acting as the main stabilising force, although the underlying bias toward further weakness persists, said Anitha Rangan, chief economist at RBL Bank. "Even if we were to see some (foreign capital) flows coming in prospectively, I would still think that the RBI would use it to actually augment its reserves rather than allow the currency to appreciate," Rangan said. "In an uncertain environment, it's very difficult to see that capital flows will actually resume very easily." FORWARD COMMITMENTS REDUCE RBI'S FIREPOWER Despite the RBI's near $700 billion in FX reserves, the central bank's large forward dollar commitments limit the buffer available to absorb future demand for dollar sales, especially if trade-related uncertainties stay for longer. Still, some economists argue that for an emerging market economy like India, the central bank must make routine interventions in the currency market. "When speculative interest builds up heavily on one side, it is ideal for the central bank to step in and set out expectations, especially in an event or an environment where fundamental pressures also exist. But it is also akin to buying time, not fixing forever. That seems to be the RBI's strategy for now," said Dhiraj Nim, FX strategist at ANZ. A majority of economists, 11 of 17, who responded to a separate question said that the RBI's intervention in the FX market over the coming month will stay the same. Four said it will increase and two said it will fall. The poll forecast the rupee roughly unchanged from current levels by month-end. Median forecasts from a Reuters poll conducted in December showed the RBI is likely done cutting interest rates, after a cumulative easing of just 125 basis points in 2025, the shortest and shallowest campaigns in over a decade. (Other stories from the January foreign exchange poll) https://www.reuters.com/world/india/rbi-actions-likely-keep-rupee-narrow-trading-range-over-coming-months-2026-01-08/

2026-01-08 00:44

US job openings decline more than expected in November Trump says his administration will ban Wall St from buying single-family homes JPMorgan dips after analyst downgrade S&P 500 -0.34%, Nasdaq +0.16%, Dow -0.94% NEW YORK, Jan 7 (Reuters) - The S&P 500 ended lower on Wednesday, pulled down by declines in JPMorgan, Blackstone and other financials, while Nvidia and Alphabet lifted the Nasdaq as investors shifted toward AI-related stocks. Drops in the S&P 500 and Dow Jones Industrial Average followed intraday record highs earlier in the session. Sign up here. Shares of housing acquisition companies tumbled after President Donald Trump said he was moving to ban from buying single-family homes, in a bid to reduce home prices. Blackstone (BX.N) , opens new tab and Apollo Global Management (APO.N) , opens new tab dropped more than 5%, contributing to a 1.4% decline in the S&P 500 financials index (.SPSY) , opens new tab. American Homes 4 Rent (AMH.N) , opens new tab fell 4.3%. Real estate platform Zillow (ZG.O) , opens new tab moved over 2% higher. JPMorgan Chase (JPM.N) , opens new tab fell 2.3% after Wolfe Research downgraded the bank to "peer perform" from "outperform." Northrop Grumman slid 5.5% and Lockheed Martin (LMT.N) , opens new tab lost 4.8% after Trump said he would not permit dividends or stock buybacks for defense companies until they fix problems with the production of military equipment. In his social media post, Trump did not mention specific companies. Nvidia (NVDA.O) , opens new tab and Microsoft (MSFT.O) , opens new tab rose about 1% each, and Alphabet (GOOGL.O) , opens new tab rose more than 2% as investors shifted back into AI stocks following recent worries they were overvalued. Underscoring investor appetite for heavyweight AI players, Anthropic is planning a multibillion-dollar fundraise that would value the Claude chatbot maker at $350 billion. That would make the privately held company more valuable than the vast majority of corporations, including Advanced Micro Devices (AMD.O) , opens new tab, Chevron (CVX.N) , opens new tab and Wells Fargo (WFC.N) , opens new tab. "Investors have come into 2026 with a similar playbook to last year: Buy tech and forget about it. Rumors that the AI trade was done turned out not to be true," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. Heading into fourth-quarter earnings season in the next few weeks, valuations on Wall Street remain relatively pricey. The S&P 500 is trading at about 22 times expected earnings, down from 23 in November, but above the index's five-year average of 19, according to LSEG data. The S&P 500 declined 0.34% to end the session at 6,920.93 points. The Nasdaq gained 0.16% to 23,584.28 points, while the Dow Jones Industrial Average declined 0.94% to 48,996.08 points. Data on Wednesday showed U.S. job openings fell more than expected in November after rising marginally in October, while a separate ADP report showed that private payrolls increased less than expected in December. While the latest labor market datasets mark a return to the standard release of economic data disrupted by the U.S. government shutdown, they did little to change expectations of interest rate cuts from the Federal Reserve ahead of Friday's key government payrolls report. Investors were also monitoring geopolitical developments after the U.S. said it seized a Russian-flagged, Venezuela-linked tanker as part of Trump's aggressive push to dictate oil flows in the Americas and force Caracas' socialist government to become its ally. The White House said on Tuesday that Trump was discussing options for acquiring Greenland, including potential use of the U.S. military. Memory and storage technology companies gave up some of their steep gains following a recent rally. Western Digital (WDC.O) , opens new tab dropped almost 9% and Seagate Technology (STX.O) , opens new tab fell 6.7%. First Solar (FSLR.O) , opens new tab tumbled 10% after Jefferies downgraded the solar panel maker's rating to "hold" from "buy." Declining stocks outnumbered rising ones within the S&P 500 (.AD.SPX) , opens new tab by a 3.4-to-one ratio. The S&P 500 posted 28 new highs and 17 new lows; the Nasdaq recorded 106 new highs and 58 new lows. Volume on U.S. exchanges was relatively heavy, with 17.4 billion shares traded, compared with an average of 16.2 billion shares over the previous 20 sessions. https://www.reuters.com/business/sp-500-nasdaq-futures-inch-lower-after-rally-labor-data-focus-2026-01-07/