2024-10-23 06:30
Oct 23 (Reuters) - India's finance ministry will take a view on scrapping windfall tax on local crude oil output, Tarun Kapoor, advisor to the Indian prime minister, said on Wednesday. The imposition of windfall tax on crude oil has no relevance now, he said, as global oil prices have softened sharply compared to 2022, when the tax was first levied. "Finance ministry will take a view ...I think petroleum ministry has already written to them," Kapoor told reporters on the sidelines of an event. Sign up here. https://www.reuters.com/world/india/india-consider-ending-windfall-tax-crude-says-govt-official-2024-10-23/
2024-10-23 06:21
Oct 23 (Reuters) - Swedish steelmaker SSAB (SSABa.ST) , opens new tab reported a smaller than expected drop in its third-quarter operating profit on Wednesday, citing more resilient demand for its high-strength steel despite still weak European markets. Steel companies have struggled with weakening demand and brutal competition from cheaper Asian rivals, as cost inflation continues to weigh on profits and higher spending is needed to cut emissions of the carbon-heavy industry. SSAB's operating result slumped 71% from a year earlier to 1.25 billion Swedish crowns ($118.6 million) in the July-September quarter, but beat analysts' average forecast of 1.05 billion crowns in a consensus , opens new tab provided by the company. The group said lower U.S. plate prices had a negative impact on its earnings compared to a year earlier. It also carried out maintenance during the seasonally weaker third quarter, incurring costs of 950 million crowns, broadly in line with its forecast. The specialized high-strength steels producer said it expected shipments for its Special Steels and Europe divisions to be somewhat lower in the last three months of the year, while they should be higher for the Americas arm. It also sees lower realized prices for Europe and Americas units and somewhat lower for Special Steels in the fourth quarter. ($1 = 10.5408 Swedish crowns) Sign up here. https://www.reuters.com/markets/commodities/swedens-ssab-beats-q3-operating-profit-forecast-2024-10-23/
2024-10-23 06:05
ATHENS, Oct 23 (Reuters) - Greece has banned the transportation and reproduction of sheep and goats across the country for 10 days after detecting more than 100 pox infections, the agriculture ministry said. The measures are precautionary and are aimed at containing the spread of the virus, which does not affect humans, the ministry said in a statement late on Tuesday. So far, 104 cases have been detected, most of them in the northern area of Evros. About 17,500 animals have been culled. Authorities are investigating the initial source of the outbreak and tests are being conducted in the wider area where the cases were first detected, in line with EU rules, it said. Greece is home to the largest number of goats in Europe, the ministry has said. Their milk, used in Greece's trademark feta cheese, is a major economic driver. "Starting today, we announce a complete ban on the movement of sheep and goats for breeding, fattening, grazing and slaughter, throughout the Greek territory for 10 days," Agriculture Minister Costas Tsiaras said. In June, Greece imposed similar restrictions to contain a viral infection known as "goat plague". Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/greece-imposes-restrictions-contain-spread-pox-among-sheep-goats-2024-10-23/
2024-10-23 06:04
Dollar tops 153 vs yen Bank of Canada cuts rates by 50 bps, as expected Fed's Beige Book shows little change in economic activity NEW YORK, Oct 23 (Reuters) - The dollar climbed above 153 against the yen for the first time in nearly three months on Wednesday on U.S. economic strength and an expected divergence among major global central banks' pace of interest rate cuts. The greenback is on track for its 16th gain in 18 sessions and fourth straight week of gains as a run of positive economic data has dampened expectations about the size and speed of rate cuts from the Federal Reserve, which has pushed U.S. Treasury yields higher. The yield on benchmark U.S. 10-year notes rose 3.4 basis points (bps) to 4.24%, after hitting a 3-month high of 4.26%. After declining for five straight months, the yield on the 10-year is up about 40 basis points for October. Investors were also positioning ahead of the U.S. presidential election on Nov. 5. "We've gone from phase one to phase two, if you like, the phase one being that the recovery being all about the U.S. economy, the strong data that we've had coming out over the past month or so... and this second phase could be all about politics," said George Vessey, lead FX strategist at Convera in London. "But the bias for a stronger dollar in the short term probably from here is going to be more of potential Trump hedges rather than the rate story which arguably is overblown, but having said that you continue to see yields surging higher." The dollar index , which measures the greenback against a basket of currencies, rose 0.32% to 104.43, after climbing to 104.57, its highest since July 30. The euro was down 0.18% at $1.0778 after dropping to $1.076, its lowest since July 3. Sterling weakened 0.49% to $1.2919. Recent comments from Fed officials have indicated the central bank will take a gradual approach to cutting rates. The central bank's "Beige Book" released on Wednesday showed economic activity was little changed from September through early October while firms saw an uptick in hiring, continuing recent trends that have reinforced expectations the Fed will settle on a smaller 25-basis-point cut at its November meeting. Markets are pricing in an 88.9% chance for a cut of 25 basis points at the Fed's November meeting, with an 11.1% chance of the central bank holding rates steady, according to CME's FedWatch Tool , opens new tab. The market was completely pricing in a cut of at least 25 bps a month ago, with a 53% chance of a 50 bps cut. The upcoming U.S. presidential election also continues to drive currency moves, as market expectations have grown in recent days for a victory by Republican presidential candidate and former President Donald Trump, which would likely bring about inflationary policies such as tariffs. The Bank of Canada on Wednesday cut its key benchmark rate by 50 basis points to 3.75%, as was widely expected by the market, its first bigger-than-usual move in more than four years, and hailed signs the country has returned to an era of low inflation. The Canadian dollar was 0.14% weaker versus the greenback to 1.38 per dollar. European Central Bank (ECB) President Christine Lagarde said on Wednesday the central bank will need to be cautious when deciding on further interest rate reductions and take its cue from incoming data. In addition, ECB chief economist Philip Lane said the recent flow of relatively weak data on the euro zone economy has raised questions about the bloc's prospects but the European Central Bank still expects the recovery to take hold. Against the Japanese yen , the dollar strengthened 0.99% to 152.56, on track for its biggest daily percentage gain since Oct. 4, after climbing to 153.18, its highest since July 31, when the Bank of Japan raised interest rates to their highest since 2007. Japan is set to hold a general election on Oct. 27. Recent opinion polls indicated that the ruling Liberal Democratic Party could lose its majority with coalition partner Komeito. The risk of a minority coalition government has raised the prospect of political instability complicating the Bank of Japan's effort to reduce dependence on monetary stimulus. Sign up here. https://www.reuters.com/markets/currencies/fed-outlook-pushes-dollar-2-12-month-peak-yen-under-pressure-2024-10-23/
2024-10-23 05:52
JOHANNESBURG, Oct 23 (Reuters) - The South African rand was little changed in early trade on Wednesday, before the release of local consumer inflation figures that will be the main focal point for the day's trading. At 0535 GMT, the rand traded at 17.5425 against the U.S. dollar , down less than 0.1% on Tuesday's closing level. Statistics South Africa will release September Consumer Price Index (CPI) data around 0800 GMT. Economists polled by Reuters predict that annual inflation (ZACPIY=ECI) , opens new tab fell to 3.9% last month, well below the 4.5% level the central bank aims for. A further drop in inflation, from 4.4% in August, could encourage the South African Reserve Bank to deliver another interest rate cut at November's monetary policy meeting, after its first cut (ZAREPO=ECI) , opens new tab in more than four years last month. South Africa's benchmark 2030 government bond was marginally stronger in early deals, with the yield down 2 basis points to 9.325%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-little-changed-cpi-data-focus-2024-10-23/
2024-10-23 05:44
Wall Street stocks end lower Gold pulls back from all-time high Dollar index gains US yields hit three-month highs Crude prices slip NEW YORK/LONDON, Oct 23 (Reuters) - Global stocks edged lower on Wednesday amid tepid trading ahead of the U.S. election, while gold prices retreated from record highs, dragged down by gains in the U.S. dollar. Investors are also rethinking how much the Federal Reserve might need to cut interest rates after the most recent U.S. economic data pointed to an economy that continues to expand and create jobs. Markets are pricing a 92% chance of a 25-basis-point cut at the Fed's next meeting in November and another 25-bps cut by year-end. A month ago, traders were pricing in as much as a full percentage point in cuts by January. The yield on benchmark U.S. 10-year notes hit three-month highs and was last up 3.2 basis points at 4.238%. "This is a classic case of buy the rumor and sell the fact," said Bill Strazzullo, chief markets strategist at Bell Curve Trading in Boston. "Buy the rumor of the rate cuts, and then as you get the rate cut, sell into it." On Wall Street, all three main indexes finished lower, driven by losses in consumer discretionary, technology and communication services stocks. Real estate and utilities were the biggest gaining sectors. The Dow Jones Industrial Average (.DJI) , opens new tab fell 0.96% to 42,514.95, the S&P 500 (.SPX) , opens new tab fell 0.92% to 5,797.42 and the Nasdaq Composite (.IXIC) , opens new tab fell 1.60% to 18,276.65. The MSCI All-World index (.MIWD00000PUS) , opens new tab lost 0.79%, while in Europe, the STOXX 600 (.STOXX) , opens new tab finished down 0.30%. "We'll see what the Fed does if they can handle this the right way and get the soft landing or not. And then, on top of that, obviously you got the election," Strazzullo added, referring to the Nov. 5 U.S. election. The chances of Republican candidate Donald Trump beating Democratic candidate Kamala Harris have recently edged higher on betting websites, though opinion polls show the race to the White House remains too tight to call. The prospect of another Trump presidency has been in focus for investors, as his policies include tariffs and restrictions on undocumented immigration, among other measures, which are expected to push up inflation. "There is an illusion that if Trump wins, you want to buy energy. Energy actually underperformed during the period from 2016 to 2020 (when Trump was president). What did outperform, and people should be buying on that basis, would be industrials like Boeing (BA.N) , opens new tab, small caps, and, believe it or not, emerging markets and China equities," said Thomas Hayes, chairman at Great Hill Capital in New York. Gold retreated after hitting record highs amid gains in the U.S. dollar. Demand for safe-haven gold is partly driven by U.S. election worries and geopolitical tensions in the Middle East and Europe. Bullion, which has risen 33% this year, was last down 1.19%at $2,715.62 an ounce. U.S. gold futures fell 0.1% to $2,741.50 an ounce. It hit a record high of $2,758.37 earlier in the session. The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.26% to 104.37. Against the Japanese yen , the dollar strengthened 1% to 152.57. The euro fell 0.11% to $1.0785. Goldman Sachs said in a note on Tuesday the euro could fall by as much as 10% in a scenario under which a Trump presidency ushered in hefty tariffs and tax cuts. Oil prices fell after data showed U.S. crude inventories rose by more than expected even as refining activity rebounded. Brent crude futures settled at $74.96 per barrel, down 1.42%. U.S. West Texas Intermediate crude futures settled down 1.35% at $70.77. Sign up here. https://www.reuters.com/markets/global-markets-wrapup-1-2024-10-23/
