2024-10-22 08:36
JOHANNESBURG, Oct 22 (Reuters) - The South African rand was stronger on Tuesday, buoyed by global precious metals prices and its appeal for carry trades. At 1502 GMT, the rand traded at 17.5050 against the dollar , 0.6% stronger than its closing level on Monday. Carry trades involve investors borrowing funds in countries with low interest rates and putting the money in countries with higher rates. ETM Analytics said in a research note that a rise in domestic bond yields should ensure the rand retains its ability to attract portfolio inflows. "Another factor worth considering is the performance of the gold price ... versus an oil price which remains more subdued, to ensure that SA's (South Africa's) terms of trade remain supportive," it added. Gold hit an all-time peak on Tuesday, while platinum also rose. Those precious metals are key South African exports. Early on Tuesday, central bank data showed a leading business cycle indicator fell 0.7% in August (ZALEAD=ECI) , opens new tab, erasing the previous month's increase. While there has been a pickup in business confidence in South Africa (ZABCI=ECI) , opens new tab since the formation of a coalition government in June and strength in retail sales (ZARET=ECI) , opens new tab recently, other sectors like mining (ZAMNG=ECI) , opens new tab remain in a slump. Focus on Wednesday will turn towards September inflation figures. Economists polled by Reuters expect year-on-year inflation last month of 3.9%. On the stock market, the Top-40 (.JTOPI) , opens new tab index closed about 0.4% lower. South Africa's benchmark 2030 government bond was stronger, with the yield down 2 basis points to 9.325%. Sign up here. https://www.reuters.com/markets/south-african-rand-supported-by-carry-trade-precious-metals-2024-10-22/
2024-10-22 08:04
BHUBANESHWAR, India, Oct 22 (Reuters) - Schools in some parts of India's eastern state of Odisha were ordered to shut and tourists asked to vacate the popular beach city of Puri, as authorities braced for a severe cyclonic storm that is expected to hit later this week. Cyclone Dana, currently over the Bay of Bengal, is expected to strengthen into a severe cyclonic storm with wind speeds gusting up to 120 kph (74 mph), and is likely to make landfall late on Thursday, the weather office said. Schools in 14 districts will be closed from Wednesday to Friday, and fishermen have been asked not to venture into the sea, a senior official from the Special Relief Commissioner's office, which oversees disaster management, told Reuters. Tourists and pilgrims who frequent the coastal city of Puri, home to the famous Jagannath temple, have been asked to leave, officials said, while rescue teams were on standby. Heavy to extremely heavy rainfall in Odisha was likely in the next three days, the weather office said, and the ensuing storm could damage houses, roads, crops, and power lines, causing flooding and landslides. Odisha is prone to cyclones, but has improved disaster preparedness over time, reducing damage and casualties. Sign up here. https://www.reuters.com/world/india/schools-shut-tourists-asked-leave-eastern-india-braces-cyclone-2024-10-22/
2024-10-22 07:44
SYDNEY, Oct 22 (Reuters) - A multi-billion dollar project to pipe solar-generated electricity 4,300 km (2,672 miles) to Singapore from Australia has received conditional approval from the island state's energy market regulator, project owner SunCable said on Tuesday. Singapore's Energy Market Authority granted the conditional approval after a process to determine whether SunCable's Australia-Asia PowerLink project was technically and commercially viable, the company said in a press release. Owned by Atlassian (TEAM.O) , opens new tab billionaire Mike Cannon-Brookes, SunCable aims to produce 6 gigawatts (GW) of electricity at a vast solar farm in Northern Australia and ship about a third of that to Singapore via undersea cable. Suncable says the project will generate A$20 billion ($13 billion) in economic value for northern Australia. However, the project has been dogged by questions over its viability and Cannon-Brookes took control after a dispute with fellow owner and Fortescue Metals (FMG.AX) , opens new tab billionaire founder Andrew Forrest over its prospects for success. "Today’s announcement is a vote of confidence in the commercial and technical viability of our project," SunCable International Interim CEO Mitesh Patel said in a statement. SunCable said the approval meant it could pursue the next phase of development, including its partnership with Indonesia, whose waters the planned cable must run through. SunCable said it plans to spend $2.5 billion in Indonesia over the project's life. The company has invested A$270 million in project development across the three countries it said on Tuesday. A final investment decision is expected in 2027. The project received environmental approval from Australia in August. ($1 = 1.4954 Australian dollars) Sign up here. https://www.reuters.com/business/energy/singapore-approves-import-solar-energy-australia-via-undersea-cable-2024-10-22/
2024-10-22 07:43
BEIJING, Oct 22 (Reuters) - Prices of iron ore futures fell on Tuesday, weighed down by concerns that demand for the key steelmaking raw material will slide, with steel demand in top consumer China showing signs of softening. The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) surrendered some earlier losses to end daytime trade 0.52% lower at 762 yuan ($107) a metric ton. The benchmark November iron ore on the Singapore Exchange was 0.98% lower at $100.8 a ton, as of 0722 GMT. It fell below the key psychological level of $100 a ton to hit an intraday low at $99.8 earlier in the session. Transaction volumes of construction steel products slipped nearly 8% from the day before to 122,500 tons on Monday, data from consultancy Mysteel showed. Steel benchmarks on the Shanghai Futures Exchange fell. Rebar shed 0.15%, hot-rolled coil lost 0.82%, wire rod slid 3.04% and stainless steel fell 1.37%. "After macro sentiment temporarily cooled, speculative demand has decreased significantly while the recovery of rigid demand is limited," analysts at First Futures said in a note. "Rebar is likely to build up inventories in November when demand will be weighed with weather getting colder (in the northern regions)." Beijing has unveiled a raft of stimulus measures since late September to spur the economy and arrest price and sales slump in its property market. That had lifted sentiment in the commodities markets, pushing iron ore and steel prices higher by 12% and 6%, respectively. Other steelmaking ingredients on the DCE lost ground, with coking coal and coke down 1.22% and 0.75%, respectively. Despite broad loss in the ferrous market, some analysts believe prices will move within a relatively narrow range as the market awaits further signals from an important meeting which will possibly be held later this month. ($1 = 7.1214 Chinese yuan) Sign up here. https://www.reuters.com/markets/commodities/iron-ore-retreats-mounting-concerns-weakening-steel-demand-weigh-2024-10-22/
2024-10-22 07:40
China cuts lending rates as it extends stimulus Global crude stockpiles could draw in months ahead, analyst says Blinken meets Netanyahu in US push for peace in Middle East NEW YORK, Oct 22 (Reuters) - Oil prices settled higher for the second consecutive session on Tuesday, as traders downplayed hopes of a Middle East ceasefire and focused on signs of improving demand from China, which could tighten market balances in the months ahead. Brent crude futures for December gained $1.75, or 2.4%, to settle at $76.04 per barrel. U.S. West Texas Intermediate crude futures for November delivery rose by $1.53, or 2.2%, to $72.09 a barrel and expired after Tuesday's settlement. Beijing's recent efforts to reinvigorate its slowing economy have led some analysts to raise expectations for oil demand in the world's largest crude-importing nation. Weak demand from China amid rapid electrification of its car fleets weighed heavily on oil prices in recent months. Both Brent and WTI rose nearly 2% on Monday, recouping some of last week's more than 7% decline, after China announced cuts to benchmark lending rates. Any improvement in economic growth should also boost fuel consumption. Still, it may take some time for the stimulus efforts to filter through to oil demand, said StoneX analyst Alex Hodes. "We have perhaps seen the low point in demand, but I do not know if there is much consensus regarding how much it can improve the situation," Hodes said. In a note to clients on Monday, analysts at Goldman Sachs said their China demand tracker rose by about 100,000 barrels per day in the prior week to a six-month high, partly as the country's industrial production and retail sales beat expectations. China on Tuesday set crude import quotas for next year at 257 million metric tons (5.14 million bpd), up from this year's 243 million tons. Global oil inventories point to a supply deficit in the fourth quarter, which should support prices in the near term, Hodes said. Global petroleum stocks were around 1.24 billion barrels last week, 5 million barrels lower than last year, according to StoneX's review of data from major trading hubs. U.S. crude stocks rose 1.64 million barrels last week, whereas gasoline and distillate fuel combined fell by 3.5 million barrels, market sources said, citing American Petroleum Institute figures on Tuesday. Analysts polled by Reuters expect a 300,000-barrel increase in crude stocks. Oil prices eased slightly in low-volume, after-hours trading, with Brent crude at $75.51 a barrel. Government data on U.S. stockpiles is due on Wednesday at 10:30 a.m. ET (1430 GMT). In the Middle East, U.S. Secretary of State Antony Blinken met Israeli Prime Minister Benjamin Netanyahu in the first big push for a Middle East ceasefire since Israel killed the leader of Hamas last week. Washington hopes this will provide an opportunity for peace. Blinken has made little progress towards a ceasefire in his previous 11 visits to the region since the war in Gaza erupted, so there is skepticism among investors that this will be any different, said Bob Yawger, director of energy futures at Mizuho. Israel has so far shown no sign of relenting in its Gaza and Lebanon campaigns, while Iran-allied Hezbollah ruled out negotiations while fighting with Israel continues. Sign up here. https://www.reuters.com/business/energy/oil-prices-trim-middle-east-war-risk-gains-china-demand-remains-worry-2024-10-22/
2024-10-22 07:16
NEW DELHI, Oct 22 (Reuters) - At least 16 farmers have been arrested in India's northern state of Haryana for illegally burning paddy stubble to clear fields, a practice that stokes air pollution in the region around New Delhi at the onset of winter, authorities said on Tuesday. India's national capital region battles pollution at this time each year as temperatures fall and cold, heavy air traps construction dust, vehicle emissions and smoke, much of which authorities say travels from the neighbouring breadbasket states of Punjab and Haryana. Delhi, ranked the world's most polluted capital for four years in a row by Swiss group IQAir, has closed its schools and halted construction projects for brief periods in the past as it looks to tackle the problem. Police in Haryana's Kaithal region told Reuters that 22 complaints of stubble burning have been registered this year, and 16 people have been arrested. "Those arrested have been released on bail since this is a bailable offence," said Birbhan, a deputy superintendent of police, who uses only one name. Investigations have been launched against almost 100 farmers across Haryana, while fines have been imposed on more than 300, local media reported. Delhi recorded "very poor" air on Tuesday morning, according to the Central Pollution Control Board (CPCB), with an air quality index (AQI) of 320. An AQI of 0-50 is considered good while anything between 400-500 poses health dangers. It was the second-most polluted city in the world on Tuesday, a live ranking on IQAir's website indicated, after only Lahore in neighbouring Pakistan. The environment ministry said Delhi's daily average AQI was likely to stay in the 'Very Poor' category (300-400) in coming days due to unfavourable meteorological and climatic conditions. To curb Delhi's pollution authorities have ordered water sprinkling on roads to tackle dust, increasing public bus and metro services and higher parking fees to discourage car use. Environmentalists say the measures are inadequate. "These are only emergency measures...This air pollution mitigation needs a long-term comprehensive solution rather than these ad hoc measures," said environmentalist Vimlendu Jha. Sign up here. https://www.reuters.com/world/india/sixteen-farmers-arrested-burning-crop-waste-pollution-rises-north-india-2024-10-22/
