2024-10-29 07:03

Sentiment index rises more than expected Reaches highest level since April 2022 Economic expectations register third straight fall BERLIN, Oct 29 (Reuters) - German consumer sentiment is set to continue to recover heading into November as households are more optimistic about their income prospects, though high prices and bad job market news are diluting those positive factors, a survey showed on Tuesday. The consumer sentiment index, published by GfK and the Nuremberg Institute for Market Decisions (NIM), increased more than expected going into November, rising to -18.3 points from a slightly revised -21.0 the month before. Analysts polled by Reuters had expected a much smaller rise, to -20.5. Income expectations and the propensity to buy improved for the second time in a row, while the propensity to save declined slightly, boosting the overall index to its highest value since April 2022, though still at a low level, found the survey. Economic expectations for the next 12 months for Europe's largest economy fell for the third time in a row, said the survey. That tracks with the government's forecast for a 0.2% contraction for 2024, which would mark a second year of decline and cement Germany's place as a laggard among its large eurozone peers. "The uncertainty caused by crises, wars and rising prices is still very pronounced at the moment and prevents positive factors for consumption, such as noticeable real income increases, from having their full effect," said NIM analyst Rolf Buerkl. Reports of a rising number of corporate bankruptcies and plans to cut jobs or relocate production abroad are also preventing a more significant recovery, added Buerkl. NOTE - The survey period was from Oct. 4-15, 2024. The consumer climate indicator forecasts the progress of real private consumption in the following month. An indicator reading above zero signals year-on-year growth in private consumption. A value below zero indicates a drop compared with the same period a year earlier. According to GfK, a one-point change in the indicator corresponds to a year-on-year change of 0.1% in private consumption. The "willingness to buy" indicator represents the balance between positive and negative responses to the question: "Do you think now is a good time to buy major items?" The income expectations sub-index reflects expectations about the development of household finances in the coming 12 months. The additional business cycle expectations index reflects respondents' assessment of the general economic situation over the next 12 months. Sign up here. https://www.reuters.com/markets/europe/german-consumer-sentiment-steady-path-recovery-november-finds-gfk-2024-10-29/

2024-10-29 06:59

Meta, Microsoft, Apple, Amazon.com still due this week U.S. monthly payrolls expected on Friday U.S. election in final stretch with polls too close to call NEW YORK, Oct 29 (Reuters) - Global stock indexes mostly rose on Tuesday, with the Nasdaq scoring a record closing high ahead of key earnings reports this week, while Treasury yields hit multimonth highs early as the U.S. presidential election was just a week away. After the closing bell, shares of Alphabet (GOOGL.O) , opens new tab were up more than 5% as the Google parent topped third-quarter revenue expectations and noted an AI-driven surge in its cloud business. The stock ended the regular session up 1.8%. Meta Platforms (META.O) , opens new tab and Microsoft (MSFT.O) , opens new tab are expected to report on Wednesday, followed by Apple (AAPL.O) , opens new tab and Amazon.com (AMZN.O) , opens new tab on Thursday. Stocks have seen strong gains this year, partly due to optimism over technology companies and artificial intelligence. The Nov. 5 U.S. election has entered its final stretch, with opinion polls still too close to call a winner in the race between Vice President Kamala Harris, the Democratic candidate, and former Republican President Donald Trump. "It wouldn't be a surprise to see further de-risking in the short-term, and some turbulent trade for now, ahead of Election Day next Tuesday," said Michael Brown, a senior research strategist at Pepperstone. The U.S. Labor Department's JOLTS survey showed job openings were at 7.44 million in September, compared with estimates of 8 million, according to a Reuters poll of economists. Investors are keen to see Friday's U.S. jobs report for October. The Dow Jones Industrial Average (.DJI) , opens new tab fell 154.52 points, or 0.36%, to 42,233.05, the S&P 500 (.SPX) , opens new tab rose 9.40 points, or 0.16%, to 5,832.92 and the Nasdaq Composite (.IXIC) , opens new tab rose 145.56 points, or 0.78%, to 18,712.75. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab rose 0.15 point, or 0.02%, to 848.08. The STOXX 600 (.STOXX) , opens new tab index fell 0.57%. Benchmark 10-year U.S. Treasury yields hit a nearly four-month high on investor wariness to buy the debt before next week's U.S. elections, but dipped later in the day after a strong seven-year note auction. U.S. 10-year yields were last down 0.6 basis point at 4.272%. The yen found its footing following Monday's dip to a three-month low as the coalition government's drubbing in Japan in weekend elections clouded the outlook for Japanese fiscal and monetary policies. The dollar was last up 0.12% on the day at 153.47 yen . The Bank of Japan announces its monetary policy decision on Thursday, and is widely expected to leave rates unchanged. A period of wrangling to secure a coalition in Japan is likely after Prime Minister Shigeru Ishiba's Liberal Democratic Party and its junior partner Komeito lost their majority in parliament, a result that potentially means bigger fiscal spending and complicates the BOJ's push to normalize interest rates. The head of the opposition Democratic Party for the People said on Tuesday that the central bank should avoid making big changes in its ultra-loose monetary policy because real wage growth remains at a standstill. The dollar index , which measures the greenback against a basket of currencies, rose 0.01% to 104.27, with the euro down 0.03% at $1.0815. Oil prices closed slightly lower after a more than 6% drop in the previous session. Axios reporter Barak Ravid said on social media platform X, citing two sources, that Israeli Prime Minister Benjamin Netanyahu will hold a meeting for a diplomatic solution to the war in Lebanon. Brent crude futures fell 30 cents, or 0.4%, to settle at $71.12 a barrel, while U.S. West Texas Intermediate crude shed 17 cents, or 0.3%, to $67.21 a barrel. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-10-29/

2024-10-29 06:58

OSLO, Oct 29 (Reuters) - The Nordic power market will on Tuesday switch the method for setting day-ahead prices, aiming to boost grid efficiency, improve renewable energy integration and even out electricity costs across the region, market operators said. The market consists of 12 bidding zones, five in Norway, four in Sweden, two in Denmark and one in Finland, that are interconnect via electricity transmission lines. The available grid capacity together with bids and offers from buyers and producers, form the price for next-day electricity supply, which is set daily at 1145 GMT. The four Nordic transmission system operators (TSOs), Svenska kraftnat, Statnett, Energinet and Fingrid traditionally calculated how much power can be moved between adjoining zones, but have long planned a switch. The new system takes a broader view of transit flows across the Nordics and even Europe, Erik Ek, head of operations at Swedish TSO Svenska kraftnat, told Reuters. Called flow-based market coupling, this system has been used in continental Europe for several years, and test runs in the Nordics showed power flows from north to south could increase more than 10%, Ek added. Most new Nordic production in recent years came from volatile wind output built in sparsely populated northern parts, while demand is mostly in the south. Higher power flows should see prices converge, rising in the north and falling in the south, but there are also cost savings, according to Ek. "If you can use the grid more efficiently, you do not have to build as much grid," he said. For traders, the new methodology offers more opportunities, Ek added. "It will be exciting to observe the capacities we achieve for both the day-ahead and intraday (markets), as well as the extent to which bidding behaviour changes," said Tom Darell, CEO of Nord Pool, the region's dominant physical market place. Sign up here. https://www.reuters.com/sustainability/climate-energy/nordic-region-switches-power-market-model-aid-renewables-integration-2024-10-29/

2024-10-29 06:30

NEW DELHI, Oct 29 (Reuters) - India's JSW Steel (JSTL.NS) , opens new tab said on Tuesday it has signed a preliminary agreement with South Korea's steel major POSCO (005490.KS) , opens new tab to set up an integrated steel plant with an initial capacity of 5 million metric tons a year. JSW Steel, India's largest steelmaker by capacity, will also explore a collaboration with POSCO on battery materials for electric vehicles as well as for renewable energy for the proposed steel plant's requirement, it said. "This JV (joint venture) also entails collaboration for renewable energy for a state-of-the-art integrated steel plant and for setting up an EV ecosystem in India," Sajjan Jindal, chairman of JSW Group, said in a statement. POSCO runs a cold-rolled, galvanised mill with an annual production capacity of 1.8 million metric tons in the western state of Maharashtra, supplying automotive steel to India's leading automakers. It dropped plans a few years ago for what was seen as India's biggest foreign investment - a $12-billion steel plant project with an annual capacity of 12 million tons in the eastern state of Odisha - stung by inordinate delays in land acquisition. In 2022, POSCO also entered into a pact with Indian billionaire Gautam Adani's infrastructure group to invest about $5 billion on projects that included setting up an integrated steel mill in the western state of Gujarat. Sign up here. https://www.reuters.com/markets/commodities/indias-jsw-steel-inks-pact-with-s-koreas-posco-set-up-steel-plant-2024-10-29/

2024-10-29 06:28

Australia faces competition from Guinea mine, green iron projects Tough lesson in Australia's nickel industry collapse Fortescue presses for more government, industry collaboration Oct 29 (Reuters) - Australia risks losing its dominant position in the global iron ore market if it does not move swiftly to produce green iron, and would do well to learn lessons from the near wipe-out of its nickel industry, Fortescue CEO Dino Otranto said on Tuesday. Australia is the world's biggest supplier of seaborne iron ore, accounting for around half of global supply. But the Pilbara grades dug up from the country's west are generally regarded as too low to be turned into steel without using coal. That means as steel makers decarbonise, they are turning elsewhere for iron ore, which could hit Australia's top export earner, Otranto said at the IMARC conference in Sydney. "The message is, take the opportunity," he said on the sidelines of the conference. "We have an abundance of solar and wind... so the logical next step is to get into downstream industries." Competition is growing from new green steel projects - made without the use of fossil fuels - in the Middle East, while Guinea's giant Simandou iron ore mine is set to start up next year, he said. "That's a high grade deposit going straight into the steel mills in China," he said of Simandou. "Let's not sit here with our head in the sand thinking it's not going to happen again." Australia had the opportunity to help build Indonesia's nickel industry but did not anticipate China's speed and technical innovation, and its domestic industry suffered as a result. "The Chinese ... built the biggest nickel industry the world has ever seen and ... took out an entire market sector in four years," he said, referring to the transformation of Indonesia's nickel industry into the world's dominant supplier, driven by Chinese stainless steel giant Tsingshan. That flood of supply has hammered nickel producers around the globe, including in New Caledonia and Australia. Otranto said a similar scenario could play out in Australia's iron ore industry which, along with the Australian government, was underplaying the threat to the sector and that government and industry need to collaborate to lower power costs in particular. "We have to bring in Chinese manufacturing of solar panels and wind turbines, because they're doing it better than anyone else," he said. Automating robots for installation would cut labour costs to help make green iron production economic, he said. The world needs Australia's iron ore to sustain steel production so answers must be found. "We cannot lose the opportunity to place the 600 to 700 million tons of iron ore that Australia ships out," he said. "So we have to work unbelievably hard, even harder than we're doing now." The world's fourth largest iron ore miner, Fortescue will use green hydrogen from solar farms at its Christmas Creek operations to start producing 2,000 tons per year of green iron using hydrogen next year. On Monday, Brazilian miner Vale (VALE3.SA) , opens new tab, the world's second biggest iron ore producer, said it had partnered with China's Jinnan Steel Group to build an iron ore beneficiation plant in Oman to make high quality pellet. Sign up here. https://www.reuters.com/markets/commodities/australia-risks-losing-top-spot-global-steel-supply-chain-fortescue-says-2024-10-29/

2024-10-29 06:20

Oct 29 (Reuters) - German chemicals maker Covestro (1COV.DE) , opens new tab lowered the upper end of its full-year core profit forecast range on Tuesday for the second time this year, citing lacklustre global demand in a challenging economic environment. The company, whose main products include foam chemicals used in mattresses, car seats and insulation for buildings, now expects its annual core profit to come between 1 billion and 1.25 billion euros ($1.08 billion-$1.35 billion). Covestro had previously forecast its 2024 earnings before interest, tax, depreciation and amortisation (EBITDA) at 1 billion to 1.4 billion euros. "Global demand is intact but remains at a low level. We continue to face challenges in various industries and regions," CFO Christian Baier said in a statement. The company's EBITDA rose 3.6% to 287 million euros during July-September, but slightly missed analysts' average estimate of 292 million euros in a company-provided consensus. Last week, Abu Dhabi's ADNOC said the acceptance period for its voluntary public takeover offer for Covestro of 14.7 billion euros has started, with an end date of Nov. 27. Covestro's third-quarter sales came in at 3.60 billion euros, up 1% from last year, but below the consensus of 3.68 billion euros. ($1 = 0.9250 euros) Sign up here. https://www.reuters.com/markets/commodities/covestro-lowers-upper-end-2024-profit-target-again-amid-tough-economy-2024-10-29/