2025-01-15 15:01
JOHANNESBURG, Jan 15 (Reuters) - South African assets gained on Wednesday, after a key U.S. inflation report showed consumer prices rose slightly more than expected last month in the world's biggest economy. At 1449 GMT, the rand traded at 18.7550 against the U.S. dollar , about 1% firmer than its previous close. The dollar last traded about 0.45% weaker against a basket of currencies. The U.S. consumer price index rose 0.4% last month while economists polled by Reuters had forecast the CPI gaining 0.3%. In the 12 months through December, the CPI advanced 2.9%, in line with expectations. As markets remain wary of incoming U.S. President Donald Trump's policies on tariffs, the latest data points to still elevated inflation, strengthening the case for the Federal Reserve's cautious stance on interest rates. "Volatility is expected to persist... with the rand's value largely influenced by external factors such as U.S. trade and monetary policies," said Zain Vawda, market analyst at MarketPulse by OANDA. On the stock market, the blue-chip Top-40 (.JTOPI) , opens new tab index was last up about 1.9%. South Africa's benchmark 2030 government bond was also stronger, with the yield down 13 basis points at 9.175%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-stocks-surge-after-us-consumer-inflation-data-2025-01-15/
2025-01-15 15:01
JOHANNESBURG, Jan 15 (Reuters) - South Africa's rand strengthened on Wednesday, ahead of a key U.S. inflation report that could provide clues on the Federal Reserve's interest rate path. At 0805 GMT, the rand traded at 18.8775 against the dollar , about 0.3% firmer than its previous close. Investors were awaiting the U.S. Consumer Price Index (CPI) report due later in the day to see if it supports the Fed's cautious stance on rates. "Today's US CPI data (is) expected to influence monetary policy and bond yields globally," said Andre Cilliers, currency strategist at TreasuryONE. On the stock market, the Top-40 (.JTOPI) , opens new tab index was up 0.6%. South Africa's benchmark 2030 government bond was stronger, with the yield down 6 basis points to 9.245%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-firms-ahead-us-consumer-inflation-data-2025-01-15/
2025-01-15 14:32
MEXICO CITY, Jan 15 (Reuters) - Mexican President Claudia Sheinbaum said on Wednesday that she expects state oil firm Pemex's (PEMX.UL) debt to suppliers to be paid off in March. Pemex is one of the most heavily indebted state oil producers in the world. Sign up here. https://www.reuters.com/business/energy/mexico-state-oil-firm-pemexs-debt-with-suppliers-should-be-paid-off-march-2025-01-15/
2025-01-15 14:30
Jan 15 (Reuters) - Federal Reserve policymakers may be able to reduce interest rates a couple of times this year, traders bet on Wednesday, after a government report helped allay fears that inflation was accelerating in the final full month of Joe Biden's presidency. The core consumer price index, which excludes food and energy prices and is seen as a gauge of underlying inflation pressures, rose 0.2% month-over-month in December, a Labor Department report showed. Economists had penciled in a 0.3% rise. Traders of interest-rate futures still see the Fed waiting until June to deliver a first rate cut, but are now pricing about even odds the central bank will follow with a second rate cut by year's end. Before the report, interest-rate futures reflected bets on only a single reduction this year. "There's still more inflation-fighting work for the Fed to do," wrote BMO senior economist Sal Guatieri after the report. Softer core CPI inflation, he said, gives Fed policymakers some breathing room as they wait for details on the economic policies of incoming president Donald Trump, who takes office on Monday. The central bank "may not resume cutting rates until it gets some clarity on the inflation pass-through of the tariffs that could begin rolling out next week," he wrote. Sign up here. https://www.reuters.com/markets/us/traders-bring-back-bets-two-fed-rate-cuts-2025-2025-01-15/
2025-01-15 14:07
SAO PAULO, Jan 15 (Reuters) - Services activity in Brazil fell more than expected in November, statistics agency IBGE said on Wednesday, the latest in a series of data indicating that the local economy might be cooling amid tight financial conditions. Service sector activity, the main engine of Brazil's economy, slipped 0.9% in November from the previous month, IBGE said, the biggest monthly drop since April 2023. Economists polled by Reuters had expected a 0.3% fall. The sector's positive performance throughout 2024 helped Brazil's gross domestic product (GDP) surprise on the upside last year, but elevated borrowing costs are expected to keep growth in check going forward. The local central bank has been hiking interest rates in a bid to bring inflation back to its 3% target after robust activity, a tight labor market, fiscal concerns and a weakening currency pushed consumer price readings and expectations up. "The service data indicates a slowdown. The scenario should remain restrictive for activity," lender Inter's chief economist Rafaela Vitoria said. IBGE data had already shown negative readings for retail sales and industrial output in November. The monthly services drop, the statistics agency said, was driven mainly by transportation (-2.7%) and professional services (-2.6%). On a yearly basis, Brazil's service sector grew 2.9% in November, it added. Economists had forecast a median rise of 3.4% in a Reuters poll. Sign up here. https://www.reuters.com/markets/brazil-service-sector-undershoots-forecasts-november-activity-slows-2025-01-15/
2025-01-15 12:32
LONDON, Jan 15 (Reuters) - OPEC on Wednesday forecast world oil demand in 2026 will rise at a similar, relatively robust rate to this year, while reducing its figure for 2024 for a sixth time highlighting China's sputtering role as the world's demand growth engine. Sign up here. https://www.reuters.com/business/energy/first-look-2026-opec-predicts-robust-global-oil-demand-growth-2025-01-15/
