2024-10-30 06:27

Q3 EBIT $1.70 bln vs forecast $1.89 bln Profit hit by lower prices, goodwill impairments Underlying profit in line, analyst says Sees 2024 output at higher end of forecast OSLO, Oct 30 (Reuters) - Norwegian oil firm Aker BP (AKRBP.OL) , opens new tab, partly owned by BP (BP.L) , opens new tab, on Wednesday reported a bigger-than-expected decline in third-quarter operating profit, but said its full-year output would be in the upper-half of its forecast. The group's profit before interest and tax fell to $1.70 billion for July-September, from $2.62 billion a year earlier, weighed down by lower prices and higher goodwill impairments. Analysts had expected profit before interest and tax of $1.89 billion in company-compiled consensus. The company reported output of 414,700 barrels of oil equivalent per day (boed) in the third-quarter, down from 449,800 boed a year earlier, due to planned maintenance at several fields. The production is expected to recover in the fourth quarter, Aker BP said. The company raised its full-year output forecast to 430,000-440,000 barrels of oil equivalent (boe) per day from a previous plan of 420,000-440,000, and cut its production cost outlook to $6.5 per boe from $7. "We are pleased to report another quarter of high production efficiency, supported by smooth execution of our maintenance program," Aker BP CEO Karl Johnny Hersvik said in a statement. "This performance has allowed us to increase our production guidance for 2024 and reinforces our position as an industry leader in both low costs and low emissions," he added. The group's earnings before interest, tax, depreciation and amortisation (EBITDA) - a measure that excludes impairments - stood at $2.61 billion, down from $3.17 billion a year prior, but was ahead of analysts' forecast of $2.48 billion. Adjusting for factors such as the timing of oil and gas sales, the underlying EBITDA was virtually in line with expectations, DNB Markets said in a note. Aker BP maintained a dividend of $0.60 per share for the third quarter. Sign up here. https://www.reuters.com/business/energy/aker-bp-q3-profit-lags-forecast-2024-10-30/

2024-10-30 06:22

JOHANNESBURG, Oct 30 (Reuters) - The South African rand was marginally weaker in early trade on Wednesday, ahead of a keenly-awaited budget speech by the finance minister. At 0612 GMT, the rand traded at 17.6725 against the U.S. dollar , down 0.1% on its previous close. The mid-term budget starts around 1200 GMT and is the first under a coalition government formed after the African National Congress party lost its majority. The coalition government has committed to lifting economic growth and making progress with reforms, boosting investor confidence and contributing to a rally in the rand and local currency debt. "The currency market will be watching closely for signs of such reforms and structural improvements," Commerzbank analyst Volkmar Baur said in a note. "Nevertheless, the fiscal situation is tight and the budget will, hence, provide an insight into the government's priorities." Economists polled by Reuters predict Finance Minister Enoch Godongwana will announce a lower 2024/25 budget deficit estimate than was given in February's main budget. But further out Godongwana faces traditional challenges, including state companies seeking bailouts and trade unions demanding above-inflation wage hikes. South Africa's benchmark 2030 government bond rose slightly in early deals, as the yield fell 3.5 basis points to 9.235%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-marginally-weaker-all-eyes-budget-speech-2024-10-30/

2024-10-30 06:18

Gold hit record high of $2,783.96/oz ADP employment report due at 1215 GMT PGMs seen higher in 2025 on supply risks, stronger demand - poll Oct 30 (Reuters) - Gold hit an all-time peak on Wednesday as investors flocked towards the safe-haven metal with less than a week left for the U.S. presidential election, while they also awaited economic data for clues on the Federal Reserve's rate stance. Spot gold rose 0.3% to $2,783.72 per ounce, as of 0545 GMT, after hitting an all-time high of $2,783.96 earlier in the session. U.S. gold futures rose 0.5% to $2,795.60. "Gold is very much being anchored on the U.S. election outcome ... In the near term, spot gold will face resistance at $2,800, then followed by $2,826," said Kelvin Wong, OANDA senior market analyst for Asia Pacific. The Nov. 5 election has entered its final stretch, with recent polls indicating a fiercely competitive race between Donald Trump and Kamala Harris. Another contributor to gold's record rally is expectations of additional U.S. interest rate cuts. Lower rates reduce the opportunity cost of holding zero-yield bullion. Fed policymakers are nearly certain to deliver a quarter-point reduction in short-term borrowing costs next week, as a U.S. Labor Department report showed job openings dropped in September to their lowest level since January 2021. "If we see hot inflation numbers or a strong jobs report, then there could be a derailment in gold prices," Wong added. Other major data due this week include the ADP employment report at 1215 GMT on Wednesday, U.S. Personal Consumption Expenditures (PCE) on Thursday and Friday's payrolls report. Goldman Sachs lowered its gold forecast from $3,080 to $3,000 by December 2025, but maintained its bullish stance. It also anticipates a 7% upside from Western exchange-traded fund (ETF) holdings. On the retail front, Indian gold buyers overlooked record high prices and made purchases for the Dhanteras and Diwali festivals that started on Tuesday, according to industry officials. Spot silver shed 0.6% to $34.25 per ounce. Palladium fell over 2% to $1,197.75 per ounce, while platinum rose 0.3% to $1,048.85. Stronger demand and the risk of supply disruption are expected to drive platinum and palladium prices higher in 2025 from this year's averages, a Reuters poll showed. Sign up here. https://www.reuters.com/markets/commodities/gold-marches-record-us-election-jitters-fuel-safe-haven-rush-2024-10-30/

2024-10-30 06:17

US stocks end lower UK shares fall as government unveils new budget Gold hits all-time high in risk-off mood Bitcoin nears record high early NEW YORK, Oct 30 (Reuters) - Global stock indexes edged lower on Wednesday as a disappointing forecast from Advanced Micro Devices weighed on chipmakers, while gold prices rose to a record high as uncertainty ahead of next week's U.S. presidential election drove safe-haven demand. British stocks (.FTSE) , opens new tab hit their lowest level since August as UK Finance Minister Rachel Reeves said she would raise taxes by 40 billion pounds ($52 billion) a year in her first budget. Shares of Alphabet (GOOGL.O) , opens new tab rose 2.8% after the company late on Tuesday reported quarterly revenue that beat estimates. On the flip side, shares of semiconductor company Advanced Micro Devices (AMD.O) , opens new tab dropped 10.6% after its revenue forecasts and artificial intelligence chip sales disappointed investors. Other chipmakers also slipped, with Nvidia (NVDA.O) , opens new tab down 1.4%. After the closing bell, shares of Facebook owner Meta Platforms (META.O) , opens new tab were down 1.5% after it beat analysts' estimates for third-quarter revenue and profit but warned of "significant acceleration" in infrastructure expenses related to its AI buildout. The stock ended the regular session down 0.2%. Apple (AAPL.O) , opens new tab and Amazon.com (AMZN.O) , opens new tab are due to report results on Thursday. "The market is heavily focused on what these (megacap) companies are going to deliver, their guidance and any signal that perhaps their purchases of AI-related infrastructure could change," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina. Stocks are up sharply for the year so far, and Krosby said upbeat results from the megacap companies would help to support the overall market. The Dow Jones Industrial Average (.DJI) , opens new tab fell 91.51 points, or 0.22%, to 42,141.54, the S&P 500 (.SPX) , opens new tab fell 19.25 points, or 0.33%, to 5,813.67 and the Nasdaq Composite (.IXIC) , opens new tab fell 104.82 points, or 0.56%, to 18,607.93. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab fell 3.14 points, or 0.37%, to 844.94. Europe's main stock index fell to its lowest level in over a month as technology and mining stocks led a broader market decline. The STOXX 600 (.STOXX) , opens new tab index closed 1.3% lower. The FTSE 100 dropped 0.7%. Gold rose to an all-time high as uncertainty over the Nov. 5 U.S. presidential election boosted safe-haven demand. Spot gold rose 0.5% to $2,788.87 per ounce, after reaching a record high of $2,789.73 earlier in the session. A recent Reuters/Ipsos poll showed Vice President Kamala Harris, a Democrat, leading Republican Donald Trump 44% to 43% among registered voters nationally, within the margin of error. Other opinion polls show tight margins in the seven election battleground states. Among riskier assets, bitcoin was down slightly after surging to near its all-time high from March as investors weighed the prospect of a victory by Trump, widely seen as favorable towards crypto. "Bitcoin has been considered an important barometer for liquidity in the market," Krosby said, adding that its recent gains have been "associated with a Trump victory." Bitcoin was down 0.12% at $72,221.00. The dollar edged down against other major currencies after stronger-than-expected U.S. data and the UK budget release. Data showed U.S. private payrolls growth surged in October. The key U.S. jobs report for October is due on Friday. The U.S. dollar index , which measures the currency against six major rivals, rose to 104.43 earlier in the session but was last down 0.17% to 104.06. Sterling , which fell as much as 0.6% as Reeves delivered the Labour government's first budget, was last down 0.34% at $1.2971. The benchmark 10-year Treasury yield pared an earlier drop and shorter-dated yields rose on the strong U.S. economic data ahead of Friday's jobs report. "The economic data this morning was generally good, as anchored by the first estimate of third-quarter GDP, which points towards healthy underlying growth and moderating inflation," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott in Philadelphia. The benchmark 10-year yield was last down 1 basis point at 4.264%, after reaching a nearly four-month peak of 4.339% on Tuesday. Employers added an estimated 113,000 jobs in October, according to economists polled by Reuters, but analysts noted the number could be lower due to recent hurricanes in areas including Florida and North Carolina. (USNFAR=ECI) , opens new tab Investors were also digesting data showing the euro zone grew faster than expected last quarter. A separate report showed the U.S. economy had maintained steady third-quarter growth. In the energy market, oil prices rebounded from declines earlier in the week. Data on Wednesday showed U.S. crude and gasoline inventories fell unexpectedly last week. Brent crude futures settled up $1.43, or 2.01%, at $72.55 a barrel. U.S. West Texas Intermediate crude rose $1.40, or 2.08%, to $68.61. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-10-30/

2024-10-30 05:57

NEW YORK, Oct 30 (Reuters) - The dollar softened against other major currencies on Wednesday, after stronger-than-expected U.S. data and a UK budget release set off choppy trading in a market awaiting jobs data later this week and a U.S. election the next. U.S. private payrolls growth surged in October, overcoming fears of temporary disruptions from hurricanes and strikes, according to the ADP National Employment Report. Meanwhile, separate data showed the U.S. economy grew at an annualised rate of 2.8% in the third quarter, slightly lower than the 3% expected by economists. The U.S. dollar index , which measures the currency against six major rivals, rose to 104.43 earlier in the session but was last seen down 0.17% to 104.06. It rose to the highest since July 30 at 104.63 on Tuesday. "Besides sterling, I think today is about position adjusting ahead of the data on Friday," said Marc Chandler, chief market strategist at Bannockburn Global Forex. "The two big uncertainties are the U.S. jobs data on Friday and the U.S. election." Mixed U.S. indicators overnight, showing a loosening U.S. jobs market but a confident consumer, provided little clarity on the outlook for Federal Reserve rates, allowing the greenback to drift lower with Treasury yields. Recently though, economic readings have pointed to a resilient jobs market and economy, spurring traders to pare back their bets on rate cuts. Uto Shinohara, senior investment strategist at Mesirow Currency Management in Chicago, said markets have priced in a 25-basis-point cut for November's Fed meeting, but that another cut in December remains a coin flip. "With the focus more on employment data, a strong non-farm payroll print would provide Fed ammunition for a December pause," said Shinohara. "Although the election result can have a major consequence on rates over the next presidential term, the effect in the short-term will be dependent upon employment and growth." Both the dollar and U.S. bond yields have also been buoyed in recent days by rising speculation in markets and on some betting platforms of a victory in the Nov. 5 presidential election for Republican candidate Donald Trump - whose tariff and immigration policies are seen as inflationary - and who is standing against Democrat Kamala Harris. That helped leading cryptocurrency bitcoin surge to near its all-time high from March at $73,803.25, as Trump has vowed to make the United States "the crypto capital of the planet". The token last changed hands at about $71,959, after pushing as high as $73,609.88 in the previous session. UK BUDGET Sterling , which fell as much as 0.6% as British finance minister Rachel Reeves delivered the Labour government's first budget, was last down 0.34% at $1.2971. Gilt yields initially fell during Reeves' budget but then rose later in the session, with the 10-year UK government bond yield rising 6 basis points to hit 4.39%, its highest since late May. Reeves, along with Prime Minister Keir Starmer, has reiterated the need for tough fiscal measures to help improve Britain's public finances. They are seeking to retain the confidence of investors, two years after then-prime minister Liz Truss' tax-cutting plans sparked a crisis in the bond market. "I think generally, the expectations were fairly low for the budget, and they delivered a fairly reasonable budget," said Amo Sahota, director at Klarity FX, San Francisco. "Sterling has managed to avoid a major slip up here, and actually it has been a bit more supportive of the pound than I thought." The euro was last up 0.36% at $1.0857, while the dollar was flat at 153.42 yen . German growth and regional inflation data came in stronger than expected causing traders to trim their bets on an outsized rate cut from the European Central Bank in December. The euro zone economy also grew 0.4% in the third quarter, more than the 0.2% expected by economists. The Aussie dollar , which dropped as low as $0.6537 for the first time since Aug. 8, after data showed inflation slowed to a 3-1/2-year low, was up 0.26% at $0.6577. Sign up here. https://www.reuters.com/markets/currencies/us-dollar-rally-pauses-before-jobs-data-aussie-droops-rba-outlook-2024-10-30/

2024-10-30 05:34

A look at the day ahead in European and global markets from Rae Wee Investors will have a full calendar of major releases to digest on Wednesday, from bank and Big Tech earnings to a UK budget, along with a U.S. private payrolls report and growth figures for the U.S. and several big European economies. As if that weren't enough, bitcoin is closing in on a record high, the European Union has decided to increase tariffs on China-built electric vehicles and the latest polls reinforce that the U.S. presidential election is set to go down to the wire. European stocks were set for a negative opening ahead of the various risk events likely to shape the day's market moves, chief among them the first budget from Britain's Labour government after 14 years of Conservative rule. Traders have already sold UK stocks and gilts in the run-up, unsure how finance minister Rachel Reeves can possibly balance high debt, public spending pledges and a promise not to hike the income tax. Sterling held steady around the $1.30 level, although options pricing reflected some degree of nervousness over the budget outcome. Investors will also have their eye on various earnings releases later in the day, including Meta Platforms (META.O) , opens new tab and Microsoft (MSFT.O) , opens new tab, which are among the "Magnificent 7" of U.S. megacaps. Google parent Alphabet (GOOGL.O) , opens new tab on Tuesday offered a positive note with quarterly revenue that beat estimates. The run of results - including Apple (AAPL.O) , opens new tab and Amazon.com (AMZN.O) , opens new tab numbers due on Thursday - will be crucial to determining whether Wall Street can sustain the optimism around technology and artificial intelligence that has lifted indexes to record highs this year. On the economic front, Wednesday's advance third-quarter growth figures in the United States are likely to show that the world's largest economy maintained a solid pace of growth, as subsiding inflation and strong wage gains powered consumer spending. That is likely to contrast with the increasingly dour growth outlook for the euro zone, which has flirted with recession for more than a year now. The euro is headed for a fall of nearly 3% against the dollar in October, its worst monthly decline since May 2023. In Asia, Chinese assets fell broadly on Wednesday, as investors braced for a tightly contested U.S. election that could have huge ramifications for China, even as Beijing tries to shore up growth. News that China is considering approving the issuance of more than 10 trillion yuan ($1.4 trillion) in extra debt in the next few years was overshadowed by the prospect of hefty tariffs in the event of a victory next week by Donald Trump, especially if accompanied by a clean sweep in Congress for his Republican party. China's currency and equities will bear the brunt of a protectionist shift in the U.S. and are likely to be sensitive to any trade and foreign policy implications in news on the election. Key developments that could influence markets on Wednesday: - UK budget - Various earnings releases including: UBS Group AG, Volkswagen AG, Airbus SE, Meta Platforms, Microsoft - France, Germany, Euro zone, U.S. preliminary GDP - U.S. ADP National Employment Report Sign up here. https://www.reuters.com/markets/europe/global-markets-view-europe-2024-10-30/