2026-01-06 04:53

Demand for safe haven assets cools after geopolitical tensions Fed's Miran says he wants big rate cuts this year Aussie dollar hits over one year high Euro trades down, yen and Swiss franc weaken against dollar NEW YORK/LONDON, Jan 6 (Reuters) - The U.S. dollar gained against major peers on Tuesday, with the euro trading down following softer inflation data in Europe, but moves were fairly muted with investors focused on how upcoming data will shed light on U.S. monetary policy outlook. The impact of the shock U.S. capture of Venezuelan President Nicolas Maduro over the weekend was short-lived across most asset classes and particularly in currencies. Sign up here. "The primary focus has been how the market would initially react to the Venezuela news with the potential for escalation and with more potential risks ... but we are not seeing any risk-off sentiment in the marketplace and that's encouraging because it seems it is being dealt with in an isolated environment," said Amo Sahota, director at Klarity FX in San Francisco. The dollar was up 0.49% to 0.795 against the Swiss franc and was up 0.14% to 156.6 against the Japanese yen . "Before the holidays, we were in a data vacuum and were slowly playing catch-up on that and I think that's where we are still. There's a lot of uncertainty about what's really happening in the U.S. jobs market. People want to see more evidence and they're going to get a look at that this week starting tomorrow. We get the ADP report and job openings report. And then on Friday, we get the big jobs report as well," Sahota said. Markets are also digesting diverging commentaries by Federal Reserve officials on the path of interest rates this year. Fed interest rate changes will need to be "finely tuned" to incoming data given risks to both the Fed's unemployment and inflation goals, Richmond Fed president Tom Barkin said on Tuesday. Barkin is a non-voter on the Fed's rate-setting committee this year. Fed governor Stephen Miran, whose term ends at the end of January, said Tuesday the U.S. central bank needs to cut interest rates aggressively this year to keep the economy moving forward. Minneapolis Federal Reserve President Neel Kashkari, a voter on the Fed's rate-setting committee this year, told CNBC on Monday he sees a risk that the jobless rate could "pop" higher. "On the fundamental side, we are waiting for what will happen with U.S. monetary policy, and as for now Venezuela is a non-factor," said Adam Button, chief currency analyst at ForexLive. Fed funds futures are still pricing around an 82% chance that interest rates will remain on hold at the U.S. central bank's next meeting on January 27 to 28, according to the CME Group's FedWatch tool. The euro was last down 0.26% at $1.169, giving back early small gains after data showed inflation slowed more than expected in Germany and France in December. That data sent European government bond yields down around 3 basis points, while Treasury yields were slightly higher on the day, a relative move that weighed on the common currency. Traders expect the European Central Bank to keep rates steady for all of this year, and if inflation continues to hold near its 2% target, it will have little reason to rush to hike. The pound dropped in sympathy as traders thought British inflation data could follow a similar pattern, and was last down 0.27% at $1.3504, albeit after hitting a near four-month high against both the dollar and euro earlier in the day. The dollar index , which measures the greenback against major currencies including the yen and the euro, rose 0.19% to 98.57. The index dropped slightly on Monday after U.S. data showed manufacturing activity had contracted more than expected in December and fallen to a 14-month low. Elsewhere, the Australian dollar, which is sensitive to global investor sentiment and often moves in line with stocks, has been outperforming, and hit an over one-year high of $0.6739 on Tuesday. It was last up 0.36% versus the greenback at $0.6737. Against the Chinese yuan trading offshore in Hong Kong , the U.S. dollar was flat at 6.981 yuan. The New Zealand kiwi weakened 0.1% versus the greenback to $0.5782. https://www.reuters.com/world/asia-pacific/dollar-stabilises-venezuela-fears-subside-risk-on-mood-grows-2026-01-06/

2026-01-06 04:44

Martin meets Chinese premier after talks with Xi on Monday Talks cover bilateral and EU-China ties Martin says will discuss beef exports and dairy tariffs Xi says China and the EU should look at 'long-term picture' BEIJING, Jan 6 (Reuters) - Ireland's Prime Minister Micheal Martin was to hold in-depth trade talks with Chinese Premier Li Qiang on Tuesday, aiming to strengthen strategic ties with the world's second-largest economy amid strained China-EU relations. The meeting is part of Martin's five-day trip, which would have "a significant economic dimension," according to a clip posted on his X account. Martin told media he would discuss issues such as beef exports and China’s new dairy tariffs, following Monday's summit with Chinese President Xi Jinping. Sign up here. "I discussed obviously the situation in terms of Irish beef exports into China, the tariff situation in respect of dairy products," Martin said, adding that Xi "undertook to engage with Chinese officials in respect of those specific issues." Martin described his meeting with Xi as "warm and constructive", covering bilateral and EU-China ties. "On a broader level, I think the President was keen that Europe and China would have a broader framework to govern trade into the future," he said. Xi told Martin during their meeting that China and the EU should "bear the long-term picture in mind", state news agency Xinhua reported. "Ireland will always be constructive on trading matters. We've always been in the school within the European Union that has favoured open trade," Martin said on Irish radio. China-EU ties have been tense since the EU imposed levies on Chinese EV imports in 2024, prompting Chinese retaliation including tariffs on EU dairy products. BEEF AND DAIRY GOODS Ireland exports the bulk of its output from its beef and dairy industries, which are major employers in the country. It is among Europe's largest exporters of dairy, shipping about 6 billion euros ($7.04 billion) annually. Irish beef exports to China have been suspended since 2024 after a mad cow disease case. On a visit to China in November, Junior Minister for Agriculture Timmy Dooley said Dublin was making progress in persuading Beijing that Irish beef was safe but that there was "a way to go" to clear the resumption of exports. Irish beef, which the country markets as a premium commodity in the UK and Europe, also faces competition from cheaper South American imports. Last week, China also set import quotas and extra tariffs on beef imports from this year, hitting global suppliers. Martin, the first Taoiseach to visit China since 2012, has recently downplayed Irish intelligence warnings portraying China as a "hostile state actor", preferring instead to adopt a long-term and strategic understanding of China. ($1 = 0.8527 euros) https://www.reuters.com/world/china/irish-pm-aims-deeper-trade-talks-with-china-beijing-2026-01-06/

2026-01-06 03:33

JAKARTA, Jan 6 (Reuters) - At least 14 people were killed after being swept away by flash floods in Indonesia's North Sulawesi, an official said on Tuesday, as the search for the missing continued. Heavy rain early on Monday triggered flash floods on the island of Siau, located in the region of Siau Tagulandang Biaro, said Nuriadin Gumeleng, a spokesperson for the local rescue agency. Sign up here. Sixteen rescuers have been deployed to search for four people who remain missing on Tuesday, Gumeleng told Reuters, adding that 18 people had been injured so far. "We continue to collect data from local residents in case there are more missing people," he said. As of Tuesday, main roads in the affected areas were still covered by rocks, debris and thick mud, Gumeleneg said. At least 444 people have been evacuated to local schools and churches after the flash floods, the country disaster mitigation agency spokesperson Abdul Muhari said in a statement. Authorities have deployed excavators to clear roads that have been blocked by the debris and mud, he said. The floods also destroyed hundreds of houses and government buildings, North Sulawesi governor Yulius Selvanus said. The flash floods took place in the peak of the wet season in Sulawesi island, as forecast by Indonesia's weather agency. The islands of Java, Sulawesi, Maluku, and Papua are expected to experience their peak wet seasons over January and February this year, bringing more risks of floods, the weather agency had said. Rain in other parts of Indonesia like Sumatra and Borneo reached its peak in November and December last year. Last November, cyclone-induced floods and landslides killed more than 1,000 people in Sumatra, with hundreds still missing. Green groups say deforestation linked to mining and logging exacerbated the impact of the floods. https://www.reuters.com/business/environment/flash-floods-indonesias-north-sulawesi-kill-14-four-still-missing-2026-01-06/

2026-01-06 00:46

TOKYO, Jan 6 (Reuters) - Chubu Electric Power (9502.T) , opens new tab shares tumbled by the most in more than 13 years on Tuesday after the Japanese utility disclosed possible problems with how it evaluated seismic waves at an idled nuclear plant during a regulatory review required for a restart. The company's stock led declines on the benchmark Nikkei gauge, falling 9.9% and poised for the steepest one-day decline since October 2012. Sign up here. Chubu Electric said on Monday it might have used a different method than explained to regulators to select representative seismic waves during the review of two reactors at its Hamaoka nuclear power station. They have been idled since a nuclear disaster at the Fukusihima Daiichi power station in 2011 led to an eventual shutdown of all reactors in Japan. The discrepancy could "significantly impact" the regulatory review of the Hamaoka plant in central Japan, Chubu Electric said in a statement. There is suspicion that the representative wave used as the benchmark for expected ground shaking was "deliberately chosen to underestimate seismic motion," Chubu Electric President Kingo Hayashi told reporters on Monday. The Nuclear Regulation Authority (NRA) promptly suspended its review of the No.3 and No.4 reactors at Hamaoka after receiving a report from Chubu Electric on the matter on December 18, an official said, adding that the committee would discuss next steps. The disclosure could dampen momentum to rebuild trust in Japan's nuclear power industry, just after Tokyo Electric Power's (9501.T) , opens new tab Kashiwazaki-Kariwa nuclear power plant and Hokkaido Electric Power's (9509.T) , opens new tab Tomari nuclear plant had secured approval from local communities and were moving toward restarts. https://www.reuters.com/sustainability/boards-policy-regulation/chubu-electric-falls-tokyo-trading-after-nuclear-plant-test-disclosure-2026-01-06/

2026-01-06 00:21

SGH, Steel Dynamics propose A$30 per share cash for BlueScope SGH, Dynamics would split company's Australian and US assets BlueScope says it rejected an A$29/shr approach from a different Steel Dynamics group previously BlueScope says it is considering the latest approach Its shares surge 21%, near bid price SYDNEY, Jan 6 (Reuters) - Media billionaire Kerry Stokes made a near $9 billion buyout approach along with U.S.-based long-time suitor Steel Dynamics (STLD.O) , opens new tab for Australia's top steelmaker BlueScope (BSL.AX) , opens new tab in a move that would substantially broaden his industrial footprint A deal would be a second marquee purchase in two years for Australian Stokes' majority-owned SGH (SGH.AX) , opens new tab under CEO Ryan Stokes, the tycoon's son, which bought building materials maker Boral in 2024. The Stokes empire was built out of free-to-air TV network Seven (SWM.AX) , opens new tab but has amassed interests from energy exploration to heavy equipment sales. Sign up here. SGH and Steel Dynamics said they plan to break up the Australian steelmaker along geographic lines - SGH would take the Australian operations and Steel Dynamics would get the North American unit. Indiana-based Steel Dynamics has assets some 90 kilometres, or 50 miles, from BlueScope's plant in Ohio. The deal would be "highly complementary to our existing operations and further expands our capabilities domestically", said Steel Dynamics CEO and chair Mark Millett. Shares of BlueScope surged to end 21% higher at A$29.54 on Tuesday against a slightly weaker broader market (.AXJO) , opens new tab, just below the A$30 indicated offer price, suggesting optimism a deal would materialise. SGH shares were up 5.4%. The all-cash approach presents a chance of a quick exit for investors in a company that has seen its profit decline as buyers put off orders due to uncertainty about the impact of tariffs ordered by U.S. President Donald Trump - even though BlueScope says its own tariff exposure is small. BlueScope said separately it was considering the approach, and noted it had rebuffed three previous approaches from Steel Dynamics or groups involving it - one of those bids just a dollar per share lower than the current indicative bid. The offer was welcomed by analysts, some of whom said the price would have to be increased. "I see the SGH-led proposal as opportunistic but potentially value-unlocking for shareholders, albeit highly conditional and execution-heavy," said Mark Gardner, CEO of MPC Markets, an investment firm. "For employees and suppliers, there's inevitable uncertainty," he added. The suitors said the Stokes-controlled entity would keep BlueScope's key Australian management if a deal went ahead, while Steel Dynamics would retain its North American leaders. They did not give any further plans for employee retention. Omkar Joshi, chief investment officer at Opal Capital Management, said the carve-up proposal looked straightforward since BlueScope's Australian and U.S. units were separate, but "the bidders will likely need to increase their bid before it can be accepted". BlueScope said the bidders wanted exclusive due diligence but it did not specify whether it agreed to it. Under Australian law, a prospective bidder gets exclusive due diligence for four weeks. SGH hired Barrenjoey and Goldman Sachs to advise on the approach, while Steel Dynamics hired JPMorgan, the companies said. BlueScope said it hired UBS. ($1 = 1.4896 Australian dollars) https://www.reuters.com/world/asia-pacific/australias-bluescope-hits-17-year-high-88-billion-buyout-bid-sgh-steel-dynamics-2026-01-06/

2026-01-06 00:07

Oil stocks gain after Trump's military strike on Venezuela Tesla jumps, snaps seven-day streak of losses Big banks Goldman Sachs, JPM, Morgan Stanley reach record high S&P 500 +0.64%, Nasdaq +0.69%, Dow +1.23% Jan 5 (Reuters) - Wall Street ended higher on Monday, with surging financial shares helping lift the Dow Jones Industrial Average to an all-time peak, while energy firms jumped after a U.S. military strike captured Venezuelan President Nicolas Maduro. Investors bet Washington's move against Venezuela's leadership would allow U.S. firms access to the world's largest oil reserves. President Donald Trump's administration plans to meet with executives from U.S. oil companies this week to discuss boosting Venezuelan production. Sign up here. The S&P 500 energy index (.SPNY) , opens new tab rose 2.7% to its highest since March 2025, with heavyweights Exxon Mobil (XOM.N) , opens new tab and Chevron (CVX.N) , opens new tab both surging. Weapons manufacturers also advanced after Washington's military action. Lockheed Martin (LMT.N) , opens new tab and General Dynamics (GD.N) , opens new tab climbed, while the S&P 500 aerospace and defense index (.SPLRCAERO) , opens new tab rose to a record high. "Energy stocks are really benefiting from the expectation that President Trump is intending to send them in to do more investment in Venezuela and ultimately make more money for themselves," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle. "The lack of permanent boots on the ground, the fact that we're not permanently engaged, means the broader equity markets are able to set aside what might have been fears of a prolonged engagement," Haworth said. Tesla (TSLA.O) , opens new tab climbed 3.1% after seven straight sessions of losses. Nvidia (NVDA.O) , opens new tab dipped 0.4% and Apple (AAPL.O) , opens new tab declined 1.4%. The S&P 500 climbed 0.64% to end the session at 6,902.05 points. The Nasdaq gained 0.69% to 23,395.82 points, while the Dow rose 1.23% to 48,977.18 points. Volume on U.S. exchanges was heavy, with 19.1 billion shares traded, far exceeding the average of 15.9 billion shares over the previous 20 sessions. The S&P 500 financials index (.SPSY) , opens new tab jumped 2.2% as investors looked to upcoming quarterly reports. Analysts on average see S&P 500 financial companies growing their earnings 6.7% year-over-year in the December quarter. Goldman Sachs (GS.N) , opens new tab and JPMorgan Chase (JPM.N) , opens new tab rose more than 3% and hit record highs. "The mood has been favoring financial stocks in recent days and as people look beyond tech, this is a sector many are choosing to look toward," said Steve Sosnick, chief market analyst at Interactive Brokers. Wall Street's main indexes posted double-digit gains in 2025 for the third consecutive year, a run last seen in 2021. Data showed U.S. manufacturing contracted more than expected in December, extending a 10-month slump. The spotlight will now be on the monthly nonfarm payrolls on Friday, which could influence the Federal Reserve's monetary policy in 2026. Markets are pricing in about 60 basis points of interest rate easing this year, according to LSEG. Cryptocurrency-linked shares advanced as bitcoin hit a more than three-week high. Strategy (MSTR.O) , opens new tab, formerly MicroStrategy, climbed almost 5% and Coinbase (COIN.O) , opens new tab rallied 7.8%. Goldman Sachs upgraded Coinbase to "buy" from "neutral". Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX) , opens new tab by a 2.1-to-one ratio. The S&P 500 posted 60 new highs and 11 new lows; the Nasdaq recorded 107 new highs and 49 new lows. https://www.reuters.com/world/americas/us-stock-futures-tick-up-oil-companies-jump-venezuela-shock-2026-01-05/